2020 (3) TMI 1479

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.... has been filed by Tamil Nadu Cooperative Marketing Federation Limited (TANFED) aggrieved by the order of the learned Single Judge dated 24th October, 2018, by which the learned Single Judge lifted the attachment over the land which was the secured asset of the Indian Bank, which was assigned to the Asset Reconstruction Company (India) Limited (in short 'ARCIL'). The reason assigned by the learned Single Judge for lifting the said attachment in favour of the ARCIL was on the anvil of Section 26E introduced in the SARFAESI Act, 2002 which gives overriding effect to the security interest in favour of the secured creditors covered under the provisions of the said Act. The said Section 26E of the Act, which is akin to Section 31B of the....

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....he learned Court below only in the year 2014 after about seven years and therefore on account of delay and latches, their application did not deserve to be considered, much less allowed. He also submitted that the land in question claimed to be the secured interest of the assignee ARCIL was less as per the Schedule produced with the application only to the extent of 7.345 acres, whereas the land as shown in the Chart produced with their application in the Civil Court was 10.23 acres and therefore, the excess land could remain in the attachment of the Decree Holder and the decree of the Appellant could be satisfied out of such shown excess land. 3. Per contra, Mr. N. L. Rajah, learned Senior Counsel appearing on behalf of the Respondent A....

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....ed creditors shall prevail over all other dues including the decretal dues under the decrees passed by the Civil Courts and the Government dues like taxes, cesses etc. The purpose of enacting this special provisions with non obstante clause is obvious i.e., to give them an overriding effect over the dues of other persons or Departments. Therefore, the dues under a decree held to the Appellant/TANFED has to take a back seat behind the secured interest claimed by the financial institutions or his assignee like ARCIL in the present case. Therefore, there is no iota of doubt that the learned Single Judge was justified in lifting or raising or removing the attachment over the secured interest or the land in question which is secured of the secur....