TaxTMI 
TaxTMI 
2017 (5) TMI 1058
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.... 10 Biswa, Khata No. 28/56, Khasra No. 407(6-5), 410(6- 5) i.e. 17/25th share of 12 Bigha, 10 Biswa land situated inside Village Kumbra, Tehsil Amloh, Mandi Gobindgarh, District Fatehgarh Sahib, in favour of petitioner as it has purchased the said property in the e-auction held on 28.02.2017 from the respondent-bank under Section 13(9) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short, "SARFAESI Act"). 2. A few facts relevant for the decision of the controversy involved as narrated in the petition may be noticed. A public sale notice dated 09.02.2017 was published in the newspaper "Rozana Spokesman" for the sale of the land of M/s Mata Multi Metals, Tehsil Amloh, District ....
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....operty in question, it came to the knowledge of the petitioner from the office of Sub-Registrar that a sum of Rs. 5,79,000/- of the Excise and Taxation department was pending towards the previous owner of the property i.e. M/s Mata Multi Metals and entry in this regard was also mentioned in the revenue record. It was further informed to the petitioner by the office of the respondent No.2 that the sale deed of the property could not be registered in its favour unless the entry mentioned in the jamabandi was not removed from the revenue record by depositing the payment of Rs. 5,79,000/- to the Excise and Taxation department. The petitioner immediately approached the respondent bank and informed regarding the said entry of recovery of Central ....
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....harge liability of outstanding dues of the previous owner. Further, as per Section 31B of the Recovery of Debts due to banks and Financial Institution Act, 1993 (in short, "1993 Act"), the rights of the secured creditor to realise the secured debts due and payable to them by sale of assets over which security interest was created shall have priority and shall be paid in priority over all other debts and Government dues including revenue taxes, cesses and rates due to the Central Government, State Government or Local Authority. The petitioner asserts that as per the law laid down by the Apex court, the subsequent purchaser cannot be fastened with the liability relating to the dues of the Government, unless there is a specific provision in th....
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.... the petition qua respondent No.3 has been made. 4. A written statement has been filed by respondent No.4. It has been inter alia stated that as per Section 11 of the Central Excise Act 1994 (in short, "the 1994 Act"), the liability of outstanding dues towards the Excise Duty is recoverable from the sale proceeds of the property which belongs to M/s Mata Multi Metals. In addition to the amount of Rs. 5,79,430/- as duty default, interest under Section 11AA of the 1994 Act and penalty under Rule 8(3A) of the Central Excise Rules, 2002 are also recoverable from the previous owner. 5. We have heard learned counsel for the parties. 6. It is the admitted position that a public sale notice dated 09.02.2017 was published in the newspaper for the....
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....he time being in force, the rights of secured creditors to realize secured debts due and payable to them by sale of assets over which security interest is created, shall have priority and shall be paid in priority over all other debts and Government dues including revenues, taxes, cesses and rates due to the Central Government, State Government or Local authority." 8. A perusal of the above provision shows that the rights of the secured creditor to realise the secured debts due and payable to them by sale of assets over which security interest is created, shall have priority and shall be paid in priority over all other debts and government dues including revenue taxes, cesses and rates due to the central, State Government or local authori....
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....e rule..... where the titles of the kind and of a subject concur, the king takes the whole.....where the king's title and that of a subject concur, or are in conflict, the king's title is to be preferred/ "(Legal maxims; 10th Edn., pp.35-36) This common law doctrine of priority of State's debts has been recognized by the High Courts of India as applicable in British India before 1950 and hence the doctrine has been treated as "law in force" within the meaning of Article 372(1) of Constitution." The relevant observation recorded by the Apex Court in M/s Rana Girders Limited's case (supra) read thus:- "A harmonious reading of the judgments in Macson and Sicom would tend us to conclude that it is only in those cases where the buyer had ....