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IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.SARAVANAN
Union Bank of India, (Erstwhile – Andhra Bank), Stressed Assets Management Branch, Represented by its Chief Manager – Appellant
Versus
Commissioner, Income Tax Department – Respondent
ORDER :
C. Saravanan, J.
These two Writ Petitions pertain to the very same property. However, the reliefs sought for in these Writ Petitions are against the Order of Attachment of the 1st Respondent in the respective Writ Petitions namely, the Commissioner, Income Tax Department and the Assistant Commissioner of Commercial Tax, Commercial Tax Department.
2. In W.P.No.1587 of 2024, the Petitioners have sought for a declaration that the Order of Attachment dated 09.10.2018 passed by the 1st Respondent/the Commissioner, Income Tax Department registered as Document No.17/2018, reflecting on the Encumbrance Certificate on the file of the 2nd Respondent/the Sub-Registrar which is subsequent to the mortgage executed in favour of the Petitioners Banks and to consequently direct the 2nd Respondent/the Sub-Registrar to register the Sale Certificate dated 23.06.2023 issued by the 1st Petitioner Bank/Union Bank of India in favour of the 8th Respondent, namely, Mr.Subbarayan Deivasigamani.
3. In W.P.No.1593 of 2024, the Petitioners have sought for a consequential relief to declare that the Order of Attachment dated 06.04.2015 of the 1st Respondent/Assistant Commissioner of Tax therein, which is als
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 ....
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.
Secured creditors have priority over debts, permitting registration of sale certificates despite existing civil court attachments, with purchasers taking the property subject to said attachments.
Secured creditors under SARFAESI Act have priority over all other debts, including tax attachments, affirming the necessity of registering Sale Certificates in favor of auction purchasers.
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 security interest is created, would have priority over all the debts.
The SARFAESI Act affirms secured creditors' priority over state debts, overturning any conflicting tax attachments regarding sold properties.
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 the secured creditor's dues over other creditors' claims, as determined by the SARFAESI Act and relevant case law.
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