2009 (1) TMI 487

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.... JUDGMENT 1. The claim by the Union of India is for release of the amount to the tune of Rs. 7,42,41,168 plus interest till the date of realization in priority over all other dues. The claim is made in the hands of the Official Liquidator, who has, on the orders of the Court, sold the goods originally confiscated by the Customs Department and the sale proceeds is lying with the Official Liquid....

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....d at the instance of the Company Court. Holding that the Customs Department did not have a right under section 142 of the Customs Act to have a statutory power to control over the custody of goods, the appeal filed by the Union of India was dismissed affirming the decision of the Company Court. 3. The present petition was again moved on behalf of the Union of India contending that the Company i....

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....tions which are now raised are contentions which have been taken up before the Company Court as well as before the Division Bench and the priorities of claim which had been urged, had been rejected. The counsel appearing for O.L. also brings to my attention the decision of a Full Bench in UTI Bank Ltd. v. CCE [2007] 75 SCL 20 (Mad.) which dealt with the issue of the priority of Government dues ove....

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.... of secured creditor will prevail over Crown's debts....' It is made clear from our above conclusion and of the fact that the petitioner-bank being a secured creditor, the first respondent, the Deputy Commissioner of Central Excise Department is not entitled to bring the property, viz., Plot No. 55, Ambattur Industrial Estate, Ambattur, Chennai-600 058, into auction for their dues payable by th....