2001 (3) TMI 872

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....l Kr. Pandey and Satish K. Agnihotri, Advocates, for the appellants. Niraj Sharma, Advocate, for the respondents.   --------------------------------------------------   ORDER   The judgment and order under challenge was passed by a Division Bench of the High Court of Madhya Pradesh at Indore. It dismissed the first appeal filed by the present appellant, the State of Mad....

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....d respondent's sales tax dues, the State claimed a first charge under section 33-C upon the machinery in priority to the charge held by the bank. The trial court and the High Court did not accept the State's submission in this behalf. In the view of the High Court, the bank's charge on the machinery was created on 5th September, 1974, that is, prior to the enforcement of section 33-C, and the subs....

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....33-C operated in respect of all charges that were then in force and gave sales tax dues precedence over them. This position in law is discussed in detail in the judgment of this Court in Dena Bank v. Bhikhabhai Prabhudas Parekh & Co. (2000) 5 SCC 694. [2000] 120 STC 610 (SC). 6.. We are also of the view that the High Court was in error in dismissing the appeal before it on the ground that what ....