ASREC (India) Ltd. & Anr. Vs. State of Maharashtra & Ors. – Bombay High Court

Hon'ble High Court observed that the mortgage of the secured asset created in favour of Oriental Bank of Commerce and the same was registered under CERSAI on 17th March, 2012. The Sales Tax Authority have their charge noted in the mutation entry only some time in the year 2016. They have till date not registered their charge with CERSAI as contemplated under Section 26-B(4) of the SARFAESI Act, 2002. Once this is the position, we find that under Section 26-E of the SARFAESI Act, 2002, the debts of the 1st Petitioner would have to be paid in priority over all other debts and all revenue, taxes, cesses and other debts payable to the Central Government or State Government or Local Authority. In the view that we take, we are supported by the decision of the Full Bench of this Court in the case of Jalgaon Janta Sahakari Bank Ltd. & Anr. Vs. Joint Commissioner of Sales Tax Nodal (2022) ibclaw.in 192 HC.

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