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IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Tarlok Singh Chauhan, Rakesh Kainthla
H M Industries – Appellant
Versus
State of H.P. – Respondent
JUDGMENT :
Tarlok Singh Chauhan, J.
The instant petition has been filed for grant of the following substantive relief(s):-
I. A writ in the nature of certiorari be issued quashing the claim entries of respondents No. 1 to 3 recorded in the Annexure P-4 attaching the property in question, which already stands mortgaged with respondent No. 4 and purchased in auction by the petitioner and also quashing the tax and other liabilities over the said property.
II. A writ in the nature of mandamus may be issued directing the respondent No. 1 to delete the claim entry of respondents No. 2 and 3 department from the revenue records.
2. The facts are not in dispute.
3. The petitioner purchased immovable property from UCO Bank (Respondent No. 4) in an E-auction held on 11.09.2018 whereby land measuring 2 Bighas 4 Biswas and factory building comprised in Khasra No. 736/586/2-4 Kita in Khata/Khatauni No. 81/88 Min situated in village Kunjahal, Pargana Dharampur, Tehsil Baddi, District Solan, H.P. in accordance with the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short the ‘SARFAESI Act’). The reserve price of the said secure
Auction purchasers under the SARFAESI Act cannot be held liable for the previous owner's tax liabilities unless explicitly stated in the sale notice.
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....
Secured creditors' debts take precedence over state tax claims, as established by Section 26E of the SARFAESI Act.
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' rights under Section 26E of the SARFAESI Act take precedence over state tax claims, confirming the principle of priority for registered interests.
Secured creditors have priority over State debts under Section 26E of the SARFAESI Act, 2002, invalidating conflicting State charges on mortgaged assets.
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