TaxTMI 
TaxTMI 
2024 (4) TMI 2
X X X X Extracts X X X X
X X X X Extracts X X X X
....uashing the entries in revenue record as depicted in Nakal Jamabandi for the year 2016-2017 (Annexure P-5 of CWP No. 2719 of 2022) has been allowed by referring judgment passed in Civil Appeal No. 2169 of 2012, titled as Punjab National Bank vs. Union Bank of India & others, reported in (2022) 7 SCC 260: AIR 2022 SC 1475. 2. Respondent No. 1-petitioner Himanshu Prashar participated in e-Auction conducted by and on behalf of Punjab National Bank, for selling of assets of M/s Gilvert ISPAT Pvt. Ltd. in accordance with law and provisions of SARFAESI Act read with Security Interest (Enforcement) Rules, 2002. By offering highest price bid of an amount of Rs. 6,38,00,000/-, he deposited the Earnest Money Deposit (EMD) on 21.09.2021. Vide commun....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... was created in favour of Excise and Taxation Department on the property owned by M/s Gilvert ISPAT Pvt. Ltd., for outstanding arrears of Rs. 50,35,56,792/-. It is also noticeable that prior to that vide Rapat No. 171, dated 29.01.2015 entire property was attached in favour of respondent No. 2-Punjab National Bank. 5. As recorded by learned Single Judge issue involved in the matter is as to whether appellant State/Excise Department will be having first charge upon the property of M/s Gilvert ISPAT Pvt. Ltd., in terms of provisions of Section 26 of the H.P. VAT Act, 2005 or secured creditor Punjab National Bank shall have priority to recover over any other charge, including charge in favour of State, in terms of provisions of Recovery of De....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... authority. 34. Act to have overriding effect.-(1) Save as provided under sub-section (2), the provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. (2) The provisions of this Act or the rules made thereunder shall be in addition to, and not in derogation of, the Industrial Finance Corporation Act, 1948 (15 of 1948), the State Financial Corporations Act, 1951 (63 of 1951), the Unit [Trust of India Act, 1963 (52 of 1963)] [Now see the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002).], the Industrial Reconstruction Bank of India Act, 1984 (6....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rovision in either of the Central enactments containing a similar/parallel provision of a first charge in favour of the bank as was there in State enactments creating first charge in favour of the State. This judgment was passed on the basis of provisions prevailing at that point of time. Now by insertion of Section 31-B in RDB Act and Section 26E in SARFAESI Act, facts and circumstances have changed. Noticing the aforesaid changed circumstances, Kerala High Court in State of Bank of India's case referred supra, has decided that secured creditor/bank shall have priority for recovery than to the recovery of tax notwithstanding any statutory first charge created in favour of Revenue by enacting the State Act. 12. It is apt to record that in ....