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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D.KARIA, D.N.RAY
Axis Bank Limited – Appellant
Versus
State Of Gujarat – Respondent
JUDGMENT :
BHARGAV D. KARIA, J.
Heard learned advocate Mr.P.M.Dave for the petitioner and learned Assistant Government Pleader Ms.Shrunjal Shah for the respondent No.1.
1. Rule, returnable forthwith. Learned Assistant Government Pleader Ms.Shrunjal Shah waives service of notice of rule for and on behalf of the respondent No.1.
2. By this petition under Article 226 of the Constitution of India, the petitioner has prayed for the following reliefs :
“(A) YOUR LORDSHIPS may be pleased to quashed and set aside the action of respondent no.2 in registering charge of attachment on the subject property being Block/Survey No. 182 paiki, N.H. No. 8, area admeasuring 0-30-16 i.e. 3016 sq. mtr at Kanjari, Tal. Nadiad, Dist. Kheda and Revenue Surey No. 39/A paiki, western area admeasuring 3120 sq.mtrs, Mouje: Poicha (Raina) as being illegal, unjust, arbitrary, and unreasonable and contrary to the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 as also violative of statutory rights of the petitioner bank and cancel the charge of the respondent no.2 authority, in the interest of justice and equity;
(B) YOUR LORDSHIPS may be pleased to direct the respo
The actions of the state in attaching property already mortgaged to a secured creditor are illegal and violate the prioritization established under the SARFAESI Act.
The main legal point established in the judgment is that the charge created under the SARFAESI Act takes priority over the State's dues, as per Section 26E of the Act.
Point of law: rights of a secured creditor to realise secured debts due and payable by sale of assets over which security interest is created, would have priority over all debts and Government dues i....
The main legal point established in the judgment is that the claim of the secured creditor under the SARFAESI Act has priority over other debts and attachments, and attachments made by other parties ....
Section 26(E) of the SARFAESI Act and Section 31B of Act 51 of 1993, there cannot be any doubt that the rights of a secured creditor to realize the debts due and payable by sale of assets over which ....
The auction purchaser's title prevails over subsequent attachments, as the attachment occurred after the auction sale, reaffirming the priority of security interests under Section 26(E) of the SARFAE....
The SARFAESI Act takes precedence over the MPID Act for properties mortgaged before MPID attachment, ensuring secured creditors' rights are upheld.
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