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VAIBHAVI D. NANAVATI
Kuberbhai Madhabhai Kher – Appellant
Versus
Department Of State Tax – Respondent
JUDGMENT :
(Vaibhavi D. Nanavati, J.) :
1. Issue Rule, returnable forthwith. Ms. Pooja K. Ashar, learned AGP waives service of notice of rule for and on behalf of the respondent Nos.1 to 3 and Mr. Manish S. Shah, learned advocate waives service of notice for and on behalf of the respondent No.4.
2. Heard Mr. B.C. Thakkar, learned advocate with Ms. Noopur K. Dalal, learned advocate appearing for the petitioner, Ms. Pooja K. Ashar, learned AGP appearing for the respondent Nos.1 to 3 and Mr. Manish S. Shah, learned advocate appearing for the respondent No.4.
3. By way of present petition, the petitioner herein has prayed for quashing of the impugned charge or mortgage on the property being non-agriculture land with factory, land and building bearing survey No. R.S. No.423/paiki 6, Vaghel Road, PO. Harij, Taluka-Harij, District: Patan, admeasuring about 4755 Sq. Mtrs. in the name of Tirupati Cotton Ginning Partners and the property being non-agriculture land with factory, land and building bearing Survey No. at R.S. No.423/paiki1/P, Vaghel Road, PO.Harij, Taluka-Harij, District : Patan, admeasuring about 6171 Sq. Mtrs. in the name of Bhagwanbhai Parsottambhai Patel, in the registration, S
Section 26E of the SARFAESI Act establishes that secured creditors have priority over State revenue claims, reinforcing the enforceability of secured debts post-registration.
Secured creditors' rights under Section 26E of the SARFAESI Act take precedence over state tax claims, confirming the principle of priority for registered interests.
Secured creditors have priority over State debts under Section 26E of the SARFAESI Act, 2002, invalidating conflicting State charges on mortgaged assets.
Secured creditors' debts take precedence over state tax claims, as established by Section 26E of the SARFAESI Act.
The provisions of Section 26E of the SARFAESI Act 2002 and Section 31B of the Recovery of Debts and Bankruptcy Act, 1993 create "First Charge" by way of priority in favour of the Banks and Financial ....
The main legal point established in the judgment is that the charge of the Secured Creditor will precede over the charge of an Unsecured Creditor (Crowns Date) based on the provisions of the SARFAESI....
Bank is entitled only for a priority in payment alone, it can never be said to be a charge created over property against statutory charge contained under KGST Act, 1963 and KVAT Act, 2003 or any Cent....
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