Secured creditor priority does not release benami property from attachment, while notice challenge fails without proven prejudice.
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....Notice to a mortgagee bank in benami attachment proceedings was not treated as defective where the bank knew of the adjudication, could approach the Adjudicating Authority, and failed to show prejudice; its challenge to confirmation of attachment therefore failed. Secured-creditor priority under SARFAESI did not require release of mortgaged benami property, because attachment serves prospective confiscation rather than government-debt recovery. The bank was required to seek recovery from other mortgaged securities first and could make a statutory claim if any dues remained unrecovered. The attachment remained confirmed.....
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