TaxTMI 
TaxTMI 
2022 (4) TMI 1690
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....is writ application, the writ applicants under Article 226 of the Constitution of India, the writ applicants have prayed for the following reliefs: "This Hon'ble Court be pleased to issue a writ of mandamus or a writ in the nature of mandamus or a writ of certiorari or a writ in the nature of certiorari or any other appropriate writ, direction or order and be pleased to: A. Quash and set aside the impugned letter / order dated 24.05.2021 at Annexure - A and impugned letter / order dated 31.12.2020 at Annexure - F; B. Direct the respondent No.1 herein to release the registered sale deed bearing registration number 1016 of 2020 in favour of Petitioners concerning plot numbers 01 to 12 at Revenue Survey Number: 119/3....
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....ted availed loan facilities some time in the year 2006-07 from the respondent No.3 - State Bank of India by mortgaging all the 12 plots. The Company thereby created a security interest with respect to the 12 plots in favour of the State Bank of India within the meaning of Section 2(lb) of the Recovery of Debts and Bankruptcy Act, 1993 (fort short "the RDB Act"). The bank could be said to have become the secured creditor so far as the 12 pots of land are concerned. 2.2 In or around 2011-12, the Company defaulted in repayment of the debts of the bank to the tune of Rs.85,41,51,495/- (Rupees Eighty-five Crore Forty-one Lakh Fifty-one Thousand Four Hundred Ninety-five only). In such circumstances, the bank decided to proceed against the Comp....
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....bove, the writ applicants are here before this Court with the present writ application. 3. We have heard Mr. Jaymin Dave, the learned counsel appearing for the writ applicants, Mr. Nikunt Raval, the learned senior standing counsel appearing for the respondent No.2 and Mr. Anand B. Gogia, the learned counsel appearing for the respondent No.3. 4. The short point that falls for our consideration which otherwise no longer res integra is whether the bank will have the precedence over the secured assets or the Income Tax Department will have the precedence over the secured assets. 5. The Supreme Court in a recent pronouncement in the case of Punjab National Bank Vs. Union of India and Others, Civil Appeal No.2196 of 2012 decided on 24.02....
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....own debt by a statute, the dues of a secured creditor have preference over Crown debts. [See:- Dena Bank v. Bhikhabhai Prabhudas Parekh & Co., Union of India & Ors. v. SICOM Ltd., Bombay Stock Exchange v. V.S. Kandalgaonkar, CIT v. Monnet Ispat and Energy Ltd.] 10. Rule 2 of Schedule II to the Act provides for a notice to be issued to the defaulter requiring him to pay the amount specified in the certificate, in default of which steps would be taken to realise them. The crucial provision for adjudication of the dispute in this case is Rule 16. According to Rule 16(1), a defaulter or his representative cannot mortgage, charge, lease or otherwise deal with any property which is subject matter of a notice under Rule 2. Rule 16(1) also....