9911796707
TMI Blog2021 (1) TMI 750X X X X Extracts X X X X X X X X Extracts X X X X ..... t priority or precedence over the property in question on the strength of Section 48 of the Gujarat Value Added Tax Act, 2003. The security interest over the property was created in favour of the Bank much before the dues of M/s. Krishna Industries came to be determined under the VAT Act. It is hereby declared that the respondent No.2 had the first charge over the property mortgaged by M/s. Krisha Industries by virtue of Section 26E of the SARFAESI Act, and in such circumstances, they were entitled in law to put the property to auction. The writ applicants, being the auction purchasers, have a right to get their names mutated in the record of rights as the true and lawful owners of the property. In such circumstances, the Sub-Registrar o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that the learned respondent no.1 can claim right only over the excess sale proceeds, if any, from sale of mortgaged properties by the Respondent No.1 after adjusting the sale proceeds towards the secured dues of the Respondent No.2. D) Be pleased to hold that the learned respondents cannot proceed against purchasers of properties sold under the SARFAESI Act. E) Pending admission, hearing and final disposal of this petition, be pleased to prohibit the respondent No.1 from taking any further proceedings in relation to the property mortgaged by M/s. Krishna Industries in favour of the respondent No.2. F) Be pleased to grant the exparte and interim relief in terms of this prayer. G) Be pleased to award the costs of this p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tries under the VAT Act, 2003. The writ applicants were informed that the sale deed cannot be registered and is liable to be impounded under the provisions of the Gujarat Stamp Act. It also appears from the materials on record that the respondent No.1 issued an attachment notice dated 31st July 2019. In other words, by way of attachment of the property in question, the State wants to put the property to auction and recover the dues from M/s. Krishna Industries towards VAT. 5 In such circumstances referred to above, the writ applicants have come up with the present writ application. 6 Having heard the learned counsel appearing for the parties and having gone through the materials on record, we are of the view that the issue raised in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ween the Bank and the writ applicants. Once the sale deed is registered, it shall be open for the writ applicants to thereafter get their names mutated in the record of rights. 9 We may clarify that our order shall not preclude the State from recovering the VAT dues from M/s. Krisha Industries in any other mode or manner available in law. It is only the property in question, which cannot be attached by the State, as the Bank had the first charge over the same. If there are any other immovable properties or assets of M/s. Krishna Industries, then it is always open for the authority concerned to proceed against such immovable assets in accordance with the provisions of the VAT Act. 10 This petition is, accordingly, allowed and disposed ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
