Secured creditor's charge over assets prevails over State's claim u/s 37 MVAT Act, per Section 26-E SARFAESI Act.

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....Attachment of secured assets - recovery of sales tax dues - the 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 MVAT Act would be subject to the first charge created by the Central Legislation namely, Section 26-E of the SARFAESI Act. - In view of this settled legal position and in the background of the facts established in this case, the action initiated by the respondent Nos.1, 2 and 3 to the extent of two properties cannot be sustained. - HC....