2018 (2) TMI 989

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....ner : Mr.M.L.Ganesh For the Respondent : Mrs.G.Dhanamadhri, Mr.J.Pothiraj, Mr.Avinash Wadhwani, Mr.K.Ramu ORDER Heard Mr.M.L.Ganesh, learned counsel for the petitioner, Mrs.G.Dhanamadhri, learned Government Advocate for the first respondent, Mr.J.Pothiraj, learned Special Government Pleader for the second respondent, Mr.Avinash Wadhwani, learned counsel for the third respondent and Mr.K.R....

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....Sales Tax Department.  The issue is no longer res integra and has been decided by a Full Bench of this Court in the case of The Assistant Commissioner (CT) vs. the Indian Overseas Bank and another in W.P.Nos.2675 of 2011 etc., batch dated 10.11.2016, to which I was a party and the Court held that financial institution, which is a secured creditor would have 'Priority of Charge' over t....

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....t, the same stands resolved by view of the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016, Section 41 of the same seeking to introduce Section 31B in the Principal Act, which reads as under:- ''31B. Notwithstanding anything contained in any other law for the time being in force, the rights of secured creditors to real....

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....sale of assets over which security interest is created, would have priority over all debts and Government dues including revenues, taxes, cesses and rates due to the Central Government, State Government or Local Authority.  This section introduced in the Central Act is with ''notwithstanding'' clause and has come into force from 01.09.2016. 4.The law having now come i....