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2024 (2) TMI 295 - BOMBAY HIGH COURTAttachment Order - recovery of sales tax dues - secured creditor or not - priority over the dues payable to the petitioner - Non-Performing Asset (NPA) - HELD THAT:- The full bench of this Court in Janta Jalgaon Sahakari Bank [2022 (9) TMI 163 - BOMBAY HIGH COURT] was considering an issue as to who between the secured creditor [as defined in section 2(1)(zd) of the SARFAESI Act and section 2(1) (la) of the RDDB Act], and the taxing/revenue departments of the Central/State Governments, can legally claim priority for liquidation of their respective dues qua the borrower/dealer upon enforcement of the ‘security interest’ [as defined in section 2(1)(zf) of the SARFAESI Act] and consequent sale of the ‘secured asset’ [as defined in section 2(1)(zc) of the SARFAESI Act], in view of the extant laws, was the broad question the Full Bench was tasked to decide - the Court held that dues of secured creditor (subject of course to CERSAI registration) and subject to the proceedings under the Insolvency and Bankruptcy Code would rank superior to the dues of the relevant department to the State Government. Thus in view of the clear position in law as laid down by the full Bench, the Sales Tax Department cannot claim priority over the dues payable to the petitioner who is the secured creditor as held by the Full Bench. Petition allowed.
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