TaxTMI 
TaxTMI 
2022 (4) TMI 2
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.... Certificate in the auction conducted by the respondent no.4-Bank and has sought for issuance of writ of certiorari to set aside the attachment order dated 10.08.2018 issued by the respondent no.2 and the order dated 10.08.2018 issued by the respondent no.3 restraining the respondent no.6 from selling or alienating the property bearing Sy.No.80/1P1, 80/1P3, 80/1P4 and 80/1P2 measuring 15 Acres 21 Guntas, situated at Mahajenahalli Village, Harihar Taluk, Davangere District and also as regards Sy.No.11/4, 11/5 and 11/6, totally measuring 3 Acres 17 Guntas situated at Hanagavadi Village, Harihar Taluk, Davangere District. The impugned orders are at Annexure-'A' and 'A1'. 2. The petitioner has also sought for issuance of writ....
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....It is submitted that the property was put to auction under the provisions of the SARFAESI Act through Public e-action on 20.09.2021 and the petitioner was the auction purchaser in such proceedings. It is submitted that in light of certain dues by the 6th respondent, the Department of Commercial Taxes had also initiated proceedings and recovery notice was issued to the 6th respondent by notice dated 10.08.2018 and attachment was also made of the immovable property by order dated 10.08.2018. 6. It is pointed out that in light of petitioner being a bonafide purchaser for value and in light of provisions of Section 26E of the SARFAESI Act, the secured creditor would have over-riding charge even as regards dues by the State. It is pointed out....
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....-'Q'. The proceedings by the State were subsequent in point of time and recovery notice by the Department was issued on 01.08.2018 and the attachment order was passed thereafter on 10.08.2018. 12. Section 26E of the SARFAESI Act reads as hereunder: [26E. Priority to secured creditors.-- Notwithstanding anything contained in any other law for the time being in force, after the registration of security interest, the debts due to any secured creditor shall be paid in priority over all other debts and all revenues, taxes, cesses and other rates payable to the Central Government or State Government or local authority. Explanation.--For the purposes of this section, it is hereby clarified that on or after the c....
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.... that it was not aware of the charge in favour of the petitioner in that case. It was observed that the question is one of priority and has concluded that the secured creditor would have over-riding charge even over the tax dues and has referred to the judgment in the case of State Bank of India v. State of Maharashtra and Others reported in (2020 SCC Online Bom 4190. In the judgment of SBI v. State of Maharashtra, it was observed that the issue was one of priority of charge on the said assets of the secured debtors over the tax dues and not whether charge is is prior in point of time or not. 15. In the present case, it is clear that the charge that would have a priority is that of the bank as it is prior in point of time and also in lig....