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VAIBHAVI D. NANAVATI
ILA Corporation Though Tejaskumar Rohitbhai Kapadia – Appellant
Versus
Chief State Tax Commissioner – Respondent
| Table of Content |
|---|
| 1. procedural introduction of the case. (Para 1 , 2 , 3) |
| 2. arguments on secured creditors' priority under sarfaesi act. (Para 4 , 5) |
| 3. court's analysis on priority of creditor claims. (Para 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15) |
| 4. court's decision on creditor priority. (Para 16 , 17) |
| 5. final ruling and order. (Para 18) |
JUDGMENT
(Vaibhavi D. Nanavati, J.) :
1. Issue Rule, returnable forthwith. Ms. Nidhi Vyas, learned AGP waives service of notice of rule for and on behalf of the respondent Nos.1 to 4 and Ms. Himani Kini, learned advocate waives service of notice of rule for and on behalf of the respondent No.5.
2. Heard Mr. Neel Vasant, learned advocate with Mr. Kurven Desai, learned advocate for Mr. Tirth Nayak, learned advocate appearing for the petitioner, Ms. Nidhi Vyas, learned AGP appearing for the respondent Nos.1 to 4 and Ms. Himani Kini, learned advocate appearing for the respondent No.5.
3. The petitioner herein is an auction purchaser; having purchased the property situated at Block No.30, Bardoli- Palsana Road, Nadida Bardoli and factory shed/office building constructed there to the extent of 26932 sq. ft., by way of E- Auction conducted by the respondent
Secured creditors' rights under Section 26E of the SARFAESI Act take precedence over state tax claims, confirming the principle of priority for registered interests.
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 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....
Point of law: It would be seen that so far as clause (1) of Article 254 is concerned it clearly lays down that where there is a direct collision between a provision of a law made by the State and tha....
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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