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TMI Blog2024 (11) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... dent-State. 2. By this petition under Articles 226 and 227 of the Constitution of India, the petitioner has prayed for declaration that the action of the respondent No.2-Sales Tax Department of continuing charge over the property in question situated at Industrial Land bearing Survey No. 178/P/4 admeasuring 26404 sq.mtrs with allied construction thereon at Village:-Sanosara, Taluka-Sihor, District-Bhavnagar was invalid and illegal on the ground that the petitioner is a successful auction purchaser of the property in public auction held by the secured creditor. 3. Brief facts of the case are as under: 3.1 The original borrower one Shri Mahakali Cotton Pvt. Limited was the absolute owner and occupier of the property in question. The said b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assistant Tax Commissioner on 23.12.2021 to remove the charge created on 06.12.2014 on the property in question and as the respondent-Sales Tax Department did not remove the charge, the petitioner has preferred this petition. 4. Learned advocate Mr. Parv Shah for the petitioner submitted that in view of the decision of this Court in case of Partners Of Siddheshwar Tax Fab & Ors. Versus State Of Gujarat & Ors rendered in Special Civil Application No. 2527/2023 on 26.07.2024, the charge created by the respondent-Sales Tax Department on the property is required to be removed as the petitioner is a successful auction purchaser. 5. On the other hand, learned AGP Mr. Raj Tanna for the respondent could not controvert the above submission that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the RDB Act and SARFAESI Act, whereas the decision of the Apex Court in case of Rainbow Papers Ltd. (Supra) was in realm of IBC Code confined to the facts of the said case as observed in the subsequent decision of the Apex Court. 37. It is also pointed out by the learned AGP that the decision of the Rainbow Papers Ltd. (Supra) was considered in review, which is disposed of by the Apex Court as per para 26 and 27 extracted herein above. In such circumstances, we are of the opinion that the subsequent decision of the Hon'ble Apex Court, in case of Rainbow Papers Ltd. (Supra) would not be applicable with regard to the applicability of provision of Section 26E of the SARFAESI Act as well as provisions of Section 31B of RDB Act vis-a-vis Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les tax dues or VAT dues is of no avail and has no efficacy in law in view of the provisions of SARFAESI Act and the RDB Act. The property in question was sold by respondent no.6-Bank under the provisions of SARFAESI Act and the petitioners were successful purchasers and the sale certificate is issued and sale deed is also executed by which the petitioners have become absolute owners of the property and therefore considering the existing position of law, the charge created by the respondent State over the property in question in the year 2018, cannot be sustained and is accordingly quashed and set aside and as a consequence the mutation entries in revenue records also stands deleted. The petition accordingly succeeds in the aforesaid terms. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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