State Bank Of India, v. The Commercial Tax Officer (Fac),

THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN AND THE HON'BLE SRI JUSTICE M.SATYANARAYANA MURTHY WRIT PETITION NO.24381 OF 2003 ORDER: {Per the Hon'ble Sri Justice Ramesh Ranganathan} Heard Sri Ambadipudi Satyanarayana, learned counsel for the petitioner and Sri Shaik Jeelani Basha, learned Special Standing Counsel for Commercial Taxes and Sri Y.N.Lohitha, learned Standing Counsel for the fourth respondent. In this Writ Petition, the action of the banks/financial institutions in subjecting the mortgaged properties, of the borrowers, to sale for recovery of their dues is questioned on the ground that the sales tax authorities have a statutory first charge on the subject properties in terms of Section 16-C of the A.P.General Sales Tax Act, 1957, and Section 26 of the A.P.Value Added Tax Act, 2005.

This question is no longer res integra as the Supreme Court, in Central Bank of India v. State of Kerala[1], has held that a statutory charge for recovery of sales tax, would have preference over the charge, in respect of the properties, created in favour of the banks concerned.

Following the said judgment, and in terms thereof, this Writ Petition is also disposed of. There shall be no order as to costs. Miscellaneous petitions, if any, pending shall stand closed. ______________________________ (RAMESH RANGANATHAN, J) ___________________________________ (M.SATYANARAYANA MURTHY, J)

12th July 2016 RRB [1] 2009(4) SCC 94