2021 (1) TMI 750

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....e of rule for and on behalf of the respondent No.2 - Canara Bank. 2 By this writ application under Article 226 of the Constitution of India, the writ applicants have prayed for the following reliefs: "A) Be pleased to quash and set aside impugned attachment notice dated 31.07.2019 issued by the learned respondent No.1. B) Be pleased to declare that the Respondent No.2 has the first charge over the properties mortgaged from M/s. Krishna Industries under Section 26E of the SARFAESI Act which would override the charge of the learned respondent no.1 under the Gujarat Value Added Tax Act, 2003. C) Be pleased to hold that the learned respondent no.1 can claim right only over the excess sale proceeds, if any, from sale of mortgaged properti....

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....to be accepted by the Bank. On 26th August 2020, the sale of property was confirmed by the Bank in favour of the writ applicants. The final Sale Certificate came to be issued by the Bank in favour of the writ applicants. 4 The writ applicants having purchased the property in question, thereafter, approached the Sub Registrar, Bhavnagar district to get the sale deed registered in accordance with law. However, the Sub Registrar declined to register the sale deed in view of the charge of the State created over the property in question with respect to the dues recoverable from M/s. Krishna Industries under the VAT Act, 2003. The writ applicants were informed that the sale deed cannot be registered and is liable to be impounded under the provis....