9911796707
TMI Blog2022 (4) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... bank. The very proviso which brought to the notice of this Court Section 26E of the SARFAESI Act which is clear that notwithstanding anything contained in any other law for the time being in force, after the registration of security interest, the debts due to any secured creditor shall be paid in priority over all other debts and all revenues, taxes, cesses and other rates payable to the Central Government or State Government or local authority. This proviso is not brought to the notice of the Trial Court while arguing the matter. In the case on hand, there is no dispute with regard to the fact that already there was a charge in favour of the bank. The Trial Court also in the order mentioned that no doubt, the respondent has said that c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In pursuance of the assignment order, the respondent issued the notice directing the petitioner to produce the books of accounts. The petitioner appeared before the respondent and produced VAT-100, Form- 240, Balance Sheet, Profit and Loss Account, Purchase and Sales register and Bank Statements. After verification of the books of accounts, the audit authority found out some disturbances in the books of accounts and it is also the opinion of the respondent that the appellant has not maintained the proper books of accounts. Accordingly, issued the proposition notice and the petitioner has filed detailed reply and brought to the notice of the authority that the books of accounts are maintained as per the KVAT Rules. The goods are purchased f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e SARFAESI Act priority to the secured creditors and the proviso also says that notwithstanding anything contained in any other law for the time being in force, after the registration of security interest, the debts due to any secured creditor shall be paid in priority over all other debts and all revenues, taxes, cesses and other rates payable to the Central Government or State Government or local authority and also brought to the explanation with regard to for the purposes of this section, it is hereby clarified that on or after the commencement of the Insolvency and Bankruptcy Code, 2016, in cases where insolvency or bankruptcy proceedings are pending in respect of secured assets of the borrower, priority to secured creditors in payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Trial Court also in the order mentioned that no doubt, the respondent has said that charge over the movable and immovable properties of the respondent has been created in favour of the bank but comes to the conclusion that when this Court is proceeding as per Section 421 of Cr.P.C, the grounds urged by the respondent are not acceptable to issue notice to the said bank. When such reasoning is given by the Trial Court and in view of the proviso referred supra, it is appropriate to set aside the order passed by the Trial Court and issue notice to the bank as sought in terms of the memo and Trial Court proceed in the matter in accordance with law. 6. In view of the discussions made above, I pass the following: ORDER The revisio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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