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HIGH COURT OF GUJARAT
BHARGAV D. KARIA, D.N. RAY
Ektaben Hardikbhai Mashru – Appellant
Versus
Authorized Officer, State Bank of India – Respondent
JUDGMENT :
D.N.RAY, J.
1. Heard learned advocate Ms.Harshada K. Darji for the Petitioner, learned advocate Mr. Biju A. Nair for the Respondent No.1, and learned Assistant Government Pleader Ms. Shrunjal Shah for the Respondent No.2.
2. Rule returnable forthwith. Learned advocate Mr.Biju A.Nair waives service of notice of rule for the Respondent No.1 and learned Assistant Government Pleader Ms. Shrunjal Shah waives service of notice of rule for the Respondent No.2. With the consent of learned advocates for the respective parties, the matter is taken up for hearing, as the issue involved is very short.
3. The petition has been filed under Article 226 of the Constitution of India with the following prayers :-
“A. Your Lordship be pleased to issue a writ of mandamus or a writ in the nature of prohibition or certiorari or mandamus or any reference to the encumbrances, if any, which are contradictory to the provisions of section 26E of the SARFAESI Act.
B. The Respondent No. 1 has no power such conditional sale certificate, when there is no rule of law which empowers the Respondent No. 1 to issue the Sale Certificate by mentioning the encumbrances of any Government authorities.
B (1). Your lord
Secured creditors have priority over government dues only after tax assessments are finalized, reaffirming the principle of secured interests in property.
Recovery of Income Tax dues of Borrower - Charge of secured creditor would have priority over Government dues under Income Tax Act - No provision in Income Tax Act which provides for any paramountcy ....
Secured creditors' debts take precedence over state tax claims, as established by Section 26E of the SARFAESI Act.
A mortgagee bank's sale certificate cannot be denied registration due to prior attachment orders, as secured creditors' rights under the SARFAESI Act prevail over tax attachment claims.
The main legal principle established in the judgment is the priority of the secured creditor over government dues as per the SARFAESI Act, particularly in relation to the registration with CERSAI and....
The main legal point established in the judgment is the priority of secured creditors, the overriding effect of the SARFAESI Act, and the protection of rights of auction purchasers.
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