TaxTMI 
TaxTMI 
2015 (6) TMI 81
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....and the management of the land handed over to the Tehsildar, SAS Nagar. The petitioner, a public sector Bank, advanced loan to respondent No.2 - M/s Sumit Engineering Pvt. Ltd., when the said respondent mortgaged its immovable properties. After the loan was declared non-performing asset on 31.08.2013, the petitioner-Bank initiated proceedings under the Securitization and Reconstruction of Financial Assets and the Enforcement of Security Interest Act, 2002 (for short 'the Act'), when it served a notice under Section 13(2) of the Act on 06.09.2013 followed by a notice under Section 13(4) of the Act on 29.11.2013. The physical possession of the property was taken by the petitioner-Bank in August, 2014, when none of the Director of respo....
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....ch person from the date on which the amount becomes due and payable." Learned counsel for the petitioner relies upon a Division Bench judgment of this Court rendered in CWP No.4281 of 2009 titled 'The Punjab National Bank Vs. The State of Haryana & others' on 15.10.2009 to contend that the arrears of sales tax under the Haryana General Sales Tax Act, 1973 are not to be treated as a priority debts. Reliance is also placed on a judgment reported as Bombay Stock Exchange Vs. V.S.Kandalgaonkar & others (2015) 2 SCC 1. On the other hand, Mr. Bhardwaj, learned Additional Advocate General, Haryana representing respondent No.1 - State, apart from relying upon the judgment in Central Bank of India's case (supra), referred to judgments ....
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....eal was also not to affect any title, liability incurred under that Act nor it was to affect any act done. All arrears of tax and other amount due at the commencement of VAT Act could be recovered as if the same had accrued under the VAT Act. It is not disputed that there is no provision in the HGST Act corresponding to Section 26 of the VAT Act. Therefore, Section 26 of VAT Act cannot be read as part of HGST Act because Section 61 is aimed at asserting only those rights which have accrued under the HGST Act. There is no charge created on a property as has been created by Section 26 of VAT Act. Therefore, by no stretch of imagination, it could be assumed that the arrears of tax under the HGST Act could be recovered by creating a charge over....
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....te and whether or not the agreement or lien is made fully effective by statute." Based on this it was further argued that such lien would not include any lien provided by or dependent on an agreement to give security, whether or not such lien is also provided by or dependent upon statute, and whether or not such lien is made fully effective by statute. 39. The first thing to be noticed is that the Income Tax Act does not provide for any paramountcy of dues by way of income tax. This is why the Court in Dena Bank Vs. Bhikhabhai Prabhudas Parekh & Co. (2000) 5 SCC 694 held that Government dues only have priority over unsecured debts and in so holding the Court referred to a judgment in Giles Vs. Grover 131 ER 563 in which it has been he....