2018 (10) TMI 969

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....recting the Sub Registrar, Kinathukadavu, Coimbatore District, to remove the charge created in respect of Survey No.80/2, Nallatipalayam Village, Kinathukadavu Taluk, in favour of the second respondent by document No.27/2014, dated 29.12.2014, as per the dictum laid in UTI Bank vs. Deputy Commissioner of Central Excise reported in 2007 (1) LW 500 (FB). 2.The learned Counsel appearing for the petitioner would plead that M/s.BAPL Industries Ltd., have acquired property from one Smt.Gita Buradia, Smt.Asha Buradia and Smt.Nirmala Buradia, situated within the jurisdiction of the registration District of Tirupur and Sub Registration District of Kinathukadavu in Pollachi Taluk in the village of Nallatipalayam in Patta No.39, bearing S.F.No.80/2 h....

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.... the Debts Recovery Tribunal, Coimbatore, i.e., on 16.05.2008, the rights of the secured creditor to realise the security debts due and payable by sale of assets over which security interest is created, shall have priority over all debts and Government dues including revenues, taxes, cesses and rates due to the Central Government, State Government or Local Authority, as per the ratio laid down by the Full Bench of this Court reported in 2007(1) LW 500 (UTI Bank vs. Commercial Tax). The learned Counsel for the petitioner would further submit that when the petitioner has purchased the property in a public auction on 02.05.2017 brought by the Canara Bank, the fourth respondent herein, for realising the loan amount against the borrower, who has....

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....t Petition deserves to be allowed as prayed for by directing the Sub Registrar, Kinathukadavu, Coimbatore District, to remove the charge created in respect of S.F.No.80/2 situated at Nallatipalayam Village, Kinathukadavu Taluk, that stand in the name of the Superintendent of Central Excise, Pollachi. Concluding his arguments the learned Counsel for the petitioner would also refer to the judgment of the Apex Court in the case of Rana Girders Limited v. Union of India and others reported in (2013) 10 SCC 746 to say that even if the second respondent is right in justifying the charge created on the property purchased by the petitioner in a public auction on 02.05.2017, after attachment made by the fourth respondent on 22.07.2008 which is about....

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....e 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. Explanation - For the purpose of this section, it is hereby clarified that on or after the commencement of the Insolvency and Bankruptcy Code, 2016, in cases where insolvency or bankruptcy proceedings are pending in respect of secured assets of the borrower, priority to secured creditors in payment of debt shall be subject to the provisions of that Code." 6.The Full Bench of our High Court while framing the following two questions, has also ....