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2022 Supreme(MP) 310

IN THE HIGH COURT OF MADHYA PRADESH
Vivek Agrawal, J.
Uco Bank v. State of M.P. and others
Writ Petition No. 10809 of 2022 (J); Decided on 26.9.2022

Advocates:
Abhinav Sumit Kherdikar for petitioner; Sourabh Soni, Panel Lawyer, for State; Shubham Rai for respondent No. 5; S.K. Gupta for respondent No. 6; None for other respondents.

Headnote:

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 -- S. 35 -- Industrial Disputes Act, 1947 -- S. 33C -- overriding effect of provisions -- default in payment of loan received from bank -- application of bank for recovery allowed -- application of workers’ union for recovery of dues of wages by auctioning property of company also allowed -- provisions of Act of 2022 overriding on other laws -- hence, dues of bank (secured creditor) will have priority over dues of labourers. 2022 SCC Online SC 227 followed. [Para 2]

foRrh; vkfLr;¨a dk çfrÒwfrdj.k o iqufuZekZ.k v©j çfrÒwr C;kt dk çorZu vfèkfu;e] 2022 & èkkjk 35 & v©|¨fxd fookn vfèkfu;e] 1947 & èkkjk 33x & micaèk¨a dk vè;kj¨gh çÒko & cSad ls çkIr _.k d¢ lank; esa O;frØe & olwyh d¢ fy, cSad dk vkosnu eatwj & daiuh dh laifRr uhyke dj etnwjh ds 'k¨è; dh olwyh d¢ fy, deZdkj laÄ dk vkosnu Òh eatwj & lu~ 2022 d¢ vfèkfu;e d¢ micaèk vU; fofèk;¨a ij vè;kj¨gh & vr% cSad ¼çfrÒwr ysunkj½ d¢ 'k¨è;ksa dks etnwjksa ds 'k¨è;ksa ij ojh;rk g¨xhA 2022 ,l lh lh vkWuykbu ,l lh 227 vuqlfjrA ¼iSjk 2½

ORDER

1. Petitioner has filed this writ petition under Article 226 of the Constitution of India being aggrieved of order Annexure P/11 dated 8.10.2021 passed by learned Deputy Labour Commissioner, Bhopal and order Annexure P/12 dated 14.10.2021 passed by learned Collector Through Deputy Collector, Raisen.

2. Shri Abhinav Sunil Kherdikar, learned counsel for the petitioner/UCO Bank submits that petitioner/UCO Bank is a secured creditor to the respondent No.5. They have advanced loan to the respondent No.5. When there was default in payment of the loan, the petitioner/UCO Bank had moved an application under section 14 of Securitisation And Reconstruction Of Financial Assets & Enforcement of Security Interest Act, 2002, which was allowed by learned Additional District Magistrate, Raisen vide order dated 29.11.2021 passed in Case No.0048-B-121-Additional Collector-2021. He also submits that after allowing the aforesaid application, the Union of respondent No.5 i.e. respondent No.6 had moved an application under section 33C of the Industrial Disputes Act, 1947, which too has been allowed by learned Deputy Labour Commissioner, Bhopal directing the Collector, Raisen to recover dues of the Labourer by auctioning property of the respondent No.5. He further submits that the issue in narrow compass is as to whether a secured creditor like Bank will have a first charge over the property or that charge will be in the hands of the respondent No.6 under section 33C of the Industrial Disputes Act, 1947. He places reliance on the judgment of Hon'ble the Supreme Court in Punjab National Bank v. Union of India & Others 2022 SCC OnLine SC 227 to contend that section 11 of the Central Excise Act, 1944 was under consideration of Hon'ble the Supreme Court the provisions of which are pari materia to the provisions of section 33C of the Industrial Disputes Act, 1947 and after noting the provisions contained in section 35 of the Securitisation And Reconstruction Of Financial Assets & Enforcement of Security Interest Act, 2002, the apex Court has held that the provisions contained in section 35 of the Securitisation And Reconstruction Of Financial Assets & Enforcement of Security Interest Act, 2002 have overriding effect over other laws as it reads as under:-"35. The provisions of this Act to override other laws- The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law." He lastly submits that the apex Court has held that the dues of a secured creditor i.e. petitioner/UCO Bank will have priority over the dues of the Central Excise Act,1944 as even after insertion of section 11E in the Central Excise Act, 1944 with effect from 8.4.2011, the provisions contained in Securitisation And Reconstruction Of Financial Assets & Enforcement of Security Interest Act, 2002 will have an overriding effect on the provisions of the Central Excise Act, 1944.

3. Shri Sourabh Soni, learned Panel Lawyer for the State, Shri Shubham Rai, learned counsel for the respondent No. 5 & Shri S. K. Gupta, learned counsel for the respondent No.6 are not in a position to dispute the aforesaid legal position laid down by Hon'ble the Supreme Court in Punjab National Bank v. Union of India & Others (supra).

4. Accordingly, this writ petition deserves to and is hereby allowed setting aside the impugned order Annexure P/11 dated 8.10.2021 passed by learned Deputy Labour Commissioner, Bhopal and the impugned order Annexure P/12 dated 14.10.2021 passed by learned Collector Through Deputy Collector, Raisen. The Collector, Raisen is directed to proceed in favour of the petitioner/UCO Bank in accordance with the provisions of Securitisation And Reconstruction Of Financial Assets & Enforcement of Security Interest Act, 2002.

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