2019 (11) TMI 1587

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....ajani i/by V. Deshpande & Co. For the Respondent : Mr. K. S. Thorat, AGP ORDER P.C. 1. Heard learned counsel for the parties. 2. The Petitioner-Bank, a secured creditor, is aggrieved by an attachment order dated 12.12.2018 issued by the Deputy Commissioner of Sales Tax, Ahmednagar recording sales tax dues in sum of 1,95,43,279/- and attaching the secured Rs. asset available with the....

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....ate Government or local authority. Explanation. - For the purposes of this section, it is hereby clarified that on or after the commencement of the Insolvency and Bankruptcy Code, 2016 (31 of 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 provision....

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....ding the non obstante clause in Section 37 it is subject to any provision regarding creation of first charge in any Central Act. Meaning thereby, harmoniously read, a secured creditor would have a first charge over an asset and the charge created in favour of the State of Maharashtra under Section 37 of the Maharashtra Value Added Tax Act, 2002 would be subject to the first charge created by the C....

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.... 4. The Writ Petition is accordingly disposed of." 3. In the instant case in the absence of dates on which relating to sales tax dues the alleged charge was created, we dispose of the Petition declaring that the secured asset has to be sold and the buyer purchases the same free from any tax liabilities. Inter se the Petitioner and the Sales Tax Department on the issue of priority of charge,....