In all these Writ Petitions the sole question that arises for consideration is as to whether the State of Kerala has got any priority in the matter of recovery of the sales tax dues from the defaulters over the equitable mortgages created by such defaulters earlier in favour for the petitioner Banks.

2. Writ Petition Nos.24528 of 2000, 2082 of 2002, 23634 of 2003 and 36608 of 2003 are filed by the State Bank of Travancore, Writ Petition No.36313 of 2000 is filed by the Vijaya Bank, Writ petition No.8855 of 2003 is filed by the Alleppey District Co-operative Bank Ltd. and Writ Petition 33352 of 2003 is filed by the Allahabad Bank.

3. Though facts of individual cases have not much relevance so far as the question mentioned above, the facts may be briefly stated: In O.P.No.24528 of 2000 filed by the State Bank of Travancore, the third respondent, a Public Limited Company, availed loan to the tune of Rs.60 lakhs during 1985 and 1986 inter alia pledging the machineries as securities towards the advances made. The third respondent committed default in repaying the loan. The petitioner then filed a Civil Suit, O.S. No.363 before the Sub Court, Manjeri on 20.11.1993 for recovery of a sum of Rs.1,39,56,017/- with interest. The suit was later transferred to the Debt Recovery Tribunal, Chennai and later numbered as T.A. No.1103 of 1997. While so, the hypothecated properties were attached by the second respondent for realization of arrears of sales tax due from the third respondent. The petitioner then approached the first respondent for stay of the proceedings. The first respondent informed the petitioner that there is no stay against the proceedings and that the State has prior charge over the items. Hence the Writ Petition.

4. The second respondent filed a counter affidavit. He had mentioned therein three RRC Nos.1999 and 2000 and the amount due shown at Rs.1,37,762/-. Besides, 8 requisitions from the District Labour Officer, Malappuram on which the District Collector directed recovery by RR proceedings. The movables were attached and kept in safe custody. This Court by way of interim order stayed further proceedings. The details of the dues by way of arrears due to the Labour Department is Rs.3,09,209/-.

5. In O.P.No.2082 of 2002 filed by the State Bank of Travancore equitable mortgage is created by respondents 3 to 6 on 6.7.1993 and later the second respondent company created equitable mortgage. The SBT filed T.A. No.630 of 1998 before the Debt Recovery Tribunal, Chennai for recovery of Rs.1,86,77,016.91/- which is now pending before the DRT, Ernakulam. While so, the first respondent attached the properties for realization of arrears of sales tax due from the second respondent company. In the counter affidavit filed by the first respondent details of the dues to the State is mentioned and contended that the State has got first charge over the properties for arrears of sales tax fallen due before the Bank loan amount.

6. In W.P.(C) No. 23634 of 2003 the petitioner bank financed the 4th respondent and her husband to a limit of Rupees One Crore and fifty lakhs on the basis of equitable mortgage created on 9.9.1994. The petitioner obtained a decree in O.A. No.210 of 1998 on 1.8.1997. The State on the alleged sales tax dues of the 4th respondent’s husband initiated revenue recovery proceedings and attached the properties as per Exhibit P3 on 8.11.2001. The petitioner filed objection before the Collector, but without success.

7. In W.P.(c) No.36608 of 2003, the petitioner financed a partnership firm of the equitable mortgage of property created by a partner on 20.10.1986. The bank obtained a decree in O.S. No.194 of 1995 from the Sub Court, Kollam on 30.11.2000. The Tahsildar advertised the decree schedule property for recovery of arrears of sales tax due from the firm and the sale was posted to 12.6.2001. The petitioner filed a claim petition which was summarily dismissed on 11.6.2001. The appeal and revision filed were also dismiss