Basheer, J:

This bunch of 5 cases – 2 Writ appeals and 3 original petitions – has thrown up an important question for our consideration. Since the parties and issues involved are the same, we are disposing of these cases by this common judgment.

2. Can the State claim precedence or primacy for its debts over the claims of a secured creditor? To be a little more specific- Can the State enforce a statutory first charge on the property of a debtor, in preference to an existing mortgage in favour of a secured creditor?

3. A brief reference to some of the essential facts is necessary to answer the above question.

4. M/s. Thomas Stephen & Company, Kolllam (hereinafter referred to as “the Company) which was engaged in the manufacture and sale of roofing tiles, bricks etc. had availed of various loans from Canara Bank at Thamarakkulam (for short, the Bank). The Company had furnished sufficient security for repayment of the debt, in addition to creating mortgage by deposit of title deeds of certain items of immovable property as a continuing collateral security. The mortgage was created, initially, on July 9, 1974 which was renewed from time to time. Since the Company defaulted in r