TaxTMI 
TaxTMI 
TaxTMI 
2026 (1) TMI 952
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....and 26th August, 2015 which had been issued by the Deputy Commissioner (Recovery) of Central Excise Department, Mumbai - I and which are being enforced by Respondent No. 1 - Additional Commissioner (Recovery) Central Excise Department, Mumbai-I. 2. The Petitioner is an Asset Reconstruction Company incorporated under the Companies Act, 1956 and registered under Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ("SARFAESI Act"). The Respondent No. 1 as aforementioned is enforcing the impugned Letters which were intimated to Respondent No. 2 i.e. a Co-operative Housing Society under the Maharashtra Co-operative Housing Societies Act, 1960, directing the Respondent No. 2 - S....
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....(iii) In view of the said companies having defaulted in repaying their dues, their accounts were classified as Non-performing Asset ("NPA")in accordance with the directions / guidelines issued by the Reserve Bank of India. (iv) The erstwhile Dena Bank vide Deed of Assignment Agreements dated 18th January, 2012 and 21st May, 2013, assigned all its right, title and interest in various documents alongwith security interest in the said premises to the Petitioner; (v) The Petitioner became entitled to initiate / adopt the appropriate legal action and / or continue to pursue any existing legal action in its own name against the said companies and its Guarantors for recovery of the dues. It is pertinent to note that pursuant to a....
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.... for meeting with the Secretary when the Petitioner was shocked to learn that the Central Excise Department and its Officials being Respondent No. 1 and other officers holding different posts had issued the demand notices to Respondent No. 2 in respect of the excise dues; (x) Pursuant to the said meeting, the Respondent No. 2 - Society addressed a Letter dated 17th August, 2021 to the Secretary of Respondent No. 2 - Society seeking, inter alia, certain information from Respondent No. 1 and other officials; (xi) The Respondent No. 2 - Society responded to the Letter dated 17th August, 2021 and provided the information relating to Recovery Certificate, Attachment Notice, Invoice dated 4th January, 2021 and impugned Letters; ....
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....ted 17th November, 2025 which have followed the Judgment of the Full Bench of this Court in Jalgaon Janta Sahakari Bank Ltd. and Anr. Vs. Joint Commissioner of Sales Tax Nodal 9, Mumbai and Anr. 2022 SCC OnLine Bom 1767. It has been held by the Full Bench in Paragraph 150 of the said Judgment that use of the word 'priority' in Section 26E of the SARFAESI Act is that the rights accorded to 'first charge' holders by Central as well as State legislation would be subordinate to the dues of the Secured Creditor. Further, it has been laid down that attachment orders issued post 24th January 2020, if not filed with the Central Registry, any department of the Government to whom a person owes money on account of unpaid tax has to wait till the Secur....
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....eferred to prior decision of this Court in Bank of India Vs. John Bowman AIR 1955 Bom 305, wherein this Court has observed that priority given to the Crown is not on the basis of its debt being a judgment-debt or a debt arising out of statute, but the principle is that if the debts are of equal degree and the Crown and the subject are equal, the Crown's right will prevail over that of the subject. He has submitted that the Respondent No. 1 - Central Excise Department has issued the impugned letters in order to recover their central excise dues and Respondent No. 2 - Society has been directed to give prior intimation in the event of any future transaction in respect of the said premises. This is prior in point of time to the Petitioner's cha....
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....mited (Supra) and The South Indian Bank Limited (Supra). Further, the Full bench in the said Judgment has held that where there are attachment orders issued post 24th January 2020, if not filed with the Central Registry, any department of the Government to whom a person owes money on account of unpaid tax has to wait till the Secured Creditor by sale of the immovable property being the secured asset mops up its secured dues. 13. It has been further held by the Full Bench in the Jalgaon Janta Sahakari Bank Ltd. (Supra) that the attachment order is required to be followed by a proclamation according to law and it is only then that the 'priority' accorded by Section 26E of the SARFAESI Act, and Section 31B of the RDDB Act, would not....