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TMI Blog2020 (12) TMI 1263X X X X Extracts X X X X X X X X Extracts X X X X ..... SWOM BOARD VERSUS LOCAL FUND AUDIT [ 2020 (5) TMI 691 - KERALA HIGH COURT] and STATE BANK OF INDIA AND ORS. VERSUS STATE OF KERALA AND ORS. [ 2019 (7) TMI 1684 - KERALA HIGH COURT] where it was held that the sale carried out either under the SARFAESI Act or under the RDB Act takes precedence over the statutory charges due to the Government created under KVAT Act or under other State Enactments after the Amendment Act of 2016. A secured creditor in whose favour a security interest has been created thus has priority in sale and payment over all other statutory charge holders. Section 26E of the SARFAESI Act and Section 31B of the RDB Act create a 'First Charge' by way of a priority to the Banks/Financial Institutions to recover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Enforcement of Security Interest Act, 2002.'' 2. Heard the learned counsel for the petitioner and the learned Government Pleader appearing for the State. 3. Learned Standing Counsel appearing for the petitioner argued that for repayment of loan availed by its borrower, property comprised in Re.Sy. Nos.214/1/2, 214/1/3 and 214/03/2 (Old Sy. No.281/11) in Mannanchery village, so also the property comprised in Re. Sy. No.214/2 (Old Sy. No.281/11) in the same village was mortgaged by the borrower. As the loan account became irregular, by following due process of law, it was declared as Non Performing Asset and demand notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Secur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same property, the respondent/State is contending that it has first charge for recovery of dues of the sale tax. The 3rd respondent had issued a communication dated 25.11.2019 to the effect that the property is attached by the State and the petitioner bank should provide access to the property. Similar is the notice at Ext.P3 issued by the District Collector, asking the petitioner to open the gate and door of the property of which the possession is taken by the petitioner under the SARFAESI Act. 8. The question which falls for consideration is whether the State has better right over the secured assets for recovery of its dues. This question is no more res integra. The petitioner has rightly relied on the judgments of this Court in Trava ..... X X X X Extracts X X X X X X X X Extracts X X X X
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