2018 (1) TMI 1532

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....7 issued by Commercial Tax Officer-cum-Additional Tehsildar, Pithampur Circle. The aforesaid notification has been issued on the ground that commercial tax dues are to be recovered from M/s. R.S. Mould Plast (India) Ltd., a company registered under the Companies Act, 1956. 3. Shri R.C. Sinhal, learned counsel for the petitioner-bank has argued before this court that the property owned by the borrower, which is a company registered under the Companies Act was leased out by M.P.A.K.V.N. (I) Ltd. on February 28, 1994 and thereafter, it was mortgaged with the bank. He has further argued before this court that there is an amendment in the Enforcement of Security Interest and Recovery of Debts and Loans and Miscellaneous Provisions Act and the A....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....for the time being in force, the rights of secured creditors to realise 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 the other debts and Government dues including revenues, taxes, cesses and rates due to the Central Government, State Government or local authority. Explanation.--Fox 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." 8. Thus, the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tution, shall be paid by the bank or financial institution." 9. In the considered opinion of this court, the Enforcement of Security Interest and Recovery of Debts and Loans and Miscellaneous Provisions (Amendment) Act, 2016 came into force with effect from September 1, 2016 and by virtue of the said amendment, the right of secured creditors to realise the secured dues and debts dues, which are payable to the secured creditors by sale of assets over which security has been created, is having priority over all other debts and Government dues including revenue, taxes, cesses and rates due to Central Government, State Government and local authorities. 10. Not only this, it is having overriding effect over all other enactment including the pr....