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TMI Blog2019 (11) TMI 1587X X X X Extracts X X X X X X X X Extracts X X X X ..... es the alleged charge was created - priority of charge - HELD THAT:- In the instant case in the absence of dates on which relating to sales tax dues the alleged charge was created, we dispose of the Petition declaring that the secured asset has to be sold and the buyer purchases the same free from any tax liabilities. Inter se the Petitioner and the Sales Tax Department on the issue of priority of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent No.5 which is under liquidation. 2. On 13.11.2019 we had decided Writ Petition No. 3820 of 2018. The order reads as under :- "1. On 1st September, 2016 the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFESI Act) was amended by a Central Legislation vide Act No. 44 of 2016. Section 26E was inserted in the statute book. It reads ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 2002 which came into force on 1st April, 2005. Vide Section 37 it was stipulated as under:- "37. Liability under this Act to be the first charge.- Notwithstanding anything contained in any contract to the contrary, but subject to any provision regarding creation of first charge in any Central Act for the time being in force, any amount of tax, penalty, interest, sum forfeited, fine or any oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus, we hold that the Petitioner, Cooperative Bank, would have the first lien over the sale proceeds realised by selling the secured assets. If there is any surplus, the same would be credited to the account of the State of Maharashtra. 3. Noting that the dues of the Petitioner as claimed in the notice under Section 13(2) of the SARFESI Act were ₹ 123/- Crores, we direct that the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Sales Tax Department does not arise and indeed the Sales Tax Department would be entitled to attach the property for realizing the tax dues. However, as clarified in our decision dated 13th November, 2019, this would not have any bearing on the sale of the property which is secured to the Petitioner and has been attached by the Sales Tax Authorities. X X X X Extracts X X X X X X X X Extracts X X X X
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