9911796707
TMI Blog1994 (12) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... the State Bank of Bikaner and Jaipur, had given cash credit facilities to respondent No. 1, National Iron and Steel Rolling Corporation. Respondents Nos. 2 to 5 are the partners of respondent No. 1. As security for repayment of the amounts advanced to respondent No. 1 by the appellant-bank, respondent No. 1 created a mortgage of their factory premises situated at Industrial Area, Bharatpur, by a deed of mortgage dated October 18, 1977. They have also, by a letter of promise dated June 10, 1981, pledged the plant and machinery installed in the said premises to the bank as security for the said advances. There is also an agreement for the pledge of movables dated January 7, 1980, executed by the first respondent in favour of the appellant-ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... special leave. The claim of the Commercial Taxes Officer, Bharatpur, rests on the provisions of section 11AAAA of the Rajasthan Sales Tax Act, 1954. Section 11AAAA has been introduced in the Rajasthan Sales Tax Act, 1954, by way of an amendment in 1989. Section 11AAAA is as follows: " 11AAAA. Liability under this Act to be the first charge.-Notwithstanding anything to the contrary contained in any law for the time being in force, any amount of tax, penalty, interest and any other sum, if any, payable by a dealer or any other person under this Act, shall be the first charge on the property of the dealer, or such person." Under this section the amount of sales tax or any other sum due and payable by a dealer or any other person under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mortgage and a charge was considered by this court in the case of Dattatreya Shanker Mote v. Anand Chintaman Datar [1974] 2 SCC 799. The court has observed (at pages 806 and 807 ) that a charge is a wider term as it includes also a mortgage, in that, every mortgage is a charge, but every charge is not a mortgage. The court has then considered the application of the second part of section 100 of the Transfer of Property Act which, inter alia, deals with a charge not being enforceable against a bona fide transferee of the property for value without notice of the charge. It has held that the phrase "transferee of property" refers to the transferee of the entire interest in the property and it does not cover the transfer of only an interest in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is created on the property of the dealer, the property subjected to the first charge is the entire property of the dealer. The interest of the mortgagee is not excluded from the first charge. The first charge, therefore, which is created under section 11AAAA of the Rajasthan Sales Tax Act will operate on the property as a whole and not only on the equity of redemption as urged by Mr. Tarkunde. We find support for this conclusion in the observations made in Fisher and Lightwood's Law of Mortgage, 10th edition at page 33, where the statutory charges are discussed. In dealing with a statutory charge in favour of rating authorities in respect of rating surcharges for unused commercial buildings under the General Rate Act, 1967, it is stated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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