TaxTMI 
TaxTMI 
2025 (12) TMI 1606
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....ion seeking writ of mandamus directing respondent No. 2 to remove the lien entered vide rapat No. 251 dated 17.03.2025 (Annexure P-8) in the revenue record at the behest of respondent No. 3 over the property which is a secured asset in the hands of the petitioner Bank thereby scuttling the rights of the secured creditor which are to be paid prior to that of all other debt/charges secured by mortgage, with a further prayer seeking writ in the nature of certiorari quashing the lien entered vide rapat No. 251 dated 17.03.2025 (Annexure P-8) in jamabandi of the year 2021-2022, as the petitioner Bank is having priority of charge being secured creditor and also seeking issuance of writ of mandamus forbearing respondent No. 3 from interfering in a....
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....the physical possession of the properties as mentioned in the para 2(i) and 2(ii) of the petition were taken over by the petitioner Bank on 05.04.2019 (Annexure P-6). Thereafter Original Application, OA No. 2449/2018, was filed by the petitioner Bank before the DRT-III, Chandigarh on the basis whereof final orders/judgment dated 27.10.2022 (Annexure P-7) was passed which is pending execution before the Recovery Officer in Execution RC No.647/2022. Since no further appeal against the order passed in OA was preferred as such the same had attained finality. 3. It is averred that the petitioner Bank was in the process of liquidating the secured assets by putting them on auction, when it came to its notice that the secured assets had been att....
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....ted that such arrears of VAT are recoverable as per as arrears of land revenue under Section 36 of the Act. It is contended that the answering respondent has lawfully created lien over the property of respondent No. 4 vide rapat No. 251 dated 17.03.2025 (Annexure P-8). Hence prayed for dismissal of the present petition. 5. Learned counsel for the parties have been heard and record perused. 6. After considering the contentions raised by the rival parties and perusing the record the factual position emerging therefrom is that respondent No. 4 had availed certain loan facility by executing equitable mortgage in favour of the petitioner Bank qua the properties mentioned in Para 2(i) and 2(ii) of the petition. The secured assets were duly ....
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....ection, 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 provisions of that Code." xxx xxx xxx "31-B of RBD Act- Priority to secured creditors.- Notwithstanding anything contained in any other law for the time being in force, the rights of secured creditors to realise secured debts due and payable to them by sale of assets over which security interest is created, shall have priority and shall be paid in priority over all other debts and Government dues including revenues, taxes,....
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...., which was duly registered in the Central Registry CERSAI registration on 03.05.2014 (Annexure P-1) whereas respondent No. 3 had created lien over the property vide rapat No. 251 dated 17.03.2025 (Annexure P-8), therefore, it transpires that the charge created in favour of the petitioner bank is much prior in time being duly registered in the Central Registry on 03.05.2014 whereas the charge in favour of the respondent No. 3 was created on 17.03.2025 which is much later. 11. Thus, by applying the ratio laid down in the decisions rendered by this Court in CWP's (supra), on the subject is concerned, this Court has no manner of doubt that the petitioner Bank has a prior charge over the secured assets as reflected in the record, vis a vis t....