Whether realization of the duty under the Central Excise Act will have priority over the secured debts in terms of the State Financial Corporation Act, 1951 (1951 Act) The High Court, upon consideration of a large number of decisions opined that despite the fact that the dues of the appellant were recoverable as land revenue in terms of Rule 213(2) of the Central Excise Rules read with Section 32(g) and Section 151 of the Maharashtra Land Revenue Code, 1966, the same by itself would not mean that a first charge of the appellant- corporation would give way thereto. It was held : "Turning to provisions of Section 169 of the Code, sub-section (1) provides that the arrears of land revenue due on account of land shall be paramount charge on the land and every part thereof and shall have precedence over any other debt demand or claim whatsoever, whether in 4 respect of mortgage, judgment-decree, execution or attachment, or otherwise however, against any land or the holder thereof, sub-section (2) provides that claim of the State Government to any monies other than arrears of land, revenue but recoverable as a revenue demand under Chapter II shall have priority over all unsecured claims against any land or holder thereof. It is thus clear that the arrears of land revenue dues on account of land shall be paramount charge on the land or every part thereof. Those will have precedence over any other dues, debts, demands, or claim. But other claims of the State Government which are recoverable as arrears of land revenue get priority over all unsecured claims against any land of holder. In the case of secured loan of the Government and other creditors, priority will depend upon precedence of such loan, it is thus clear that security of the Corporation being prior in point of time, it being in the nature of mortgage of priority, the dues claimed by Corporation will have priority over the dues of Customs." Apex court held that confirm the same and dismiss the appeal Furthermore, the right of a State Financial Corporation is a statutory one. The Act contains a non- obstante clause in Section 46B of the Act which reads as under : Section 46B--Effect of Act on other laws--The provision of this Act and of any rule or orders made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in the memorandum or articles of association of an industrial concern or in any other instrument having effect by virtue of any law other than this Act, but save as aforesaid, the provisions of this Act shall be in addition to, and not in derogation of, any other law for the time being applicable to an industrial concern." The non-obstante clause shall not only prevail over the contract but also other laws.-2015 S.C.(2008)msklawreports

Whether realization of the duty under the Central Excise Act will have priority over the secured debts in terms of the State Financial Corporation Act, 1951 (1951 Act)
The High Court, upon consideration of a large number of decisions opined that despite the fact that the dues of the appellant were recoverable as land revenue in terms of Rule 213(2) of the Central Excise Rules read with Section 32(g) and Section 151 of the Maharashtra Land Revenue Code, 1966, the same by itself would not mean that a first charge of the appellant- corporation would give way thereto. It was held :
"Turning to provisions of Section 169 of the Code, sub-section (1) provides that the arrears of land revenue due on account of land shall be paramount charge on the land and every part thereof and shall have precedence over any other debt demand or claim whatsoever, whether in 4 respect of mortgage, judgment-decree, execution or attachment, or otherwise however, against any land or the holder thereof, sub-section (2) provides that claim of the State Government to any monies other than arrears of land, revenue but recoverable as a revenue demand under Chapter II shall have priority over all unsecured claims against any land or holder thereof.
 It is thus clear that the arrears of land revenue dues on account of land shall be paramount charge on the land or every part thereof. Those will have precedence over any other dues, debts, demands, or claim. But other claims of the State Government which are recoverable as arrears of land revenue get priority over all unsecured claims against any land of holder. In the case of secured loan of the Government and other creditors, priority will depend upon precedence of such loan, it is thus clear that security of the Corporation being prior in point of time, it being in the nature of mortgage of priority, the dues claimed by Corporation will have priority over the dues of Customs."

 Apex court held that confirm the same and dismiss the appeal

Furthermore, the right of a State Financial Corporation is a statutory one. The Act contains a non- obstante clause in Section 46B of the Act which reads as under :
Section 46B--Effect of Act on other laws--The provision of this Act and of any rule or orders made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in the memorandum or articles of association of an industrial concern or in any other instrument having effect by virtue of any law other than this Act, but save as aforesaid, the provisions of this Act shall be in addition to, and not in derogation of, any other law for the time being applicable to an industrial concern."
The non-obstante clause shall not only prevail over the contract but also other laws.-2015 S.C.(2008)msklawreports

Popular posts from this blog

Or.39, rule 7 of C.P.C - Petition for preservation of properties belongs to the petitioner - as the Govt. is going to demolish the building in road widening scheme - Or.39, rule 1 made absolute against the petitioner infavour of the respondent - Trial court allowed the Petition wrongly - their lordships held that In a suit for injunction, though the question of possession as on the date of filing of the suit is most relevant, there may be other ancillary and incidental questions as to the conduct of the parties before the Court. The concept of possession in law should take in its spectrum all rights, liabilities, immunities and claims vis-`-vis the property which is said to be in possession. When the Court recorded a prima facie finding that Gayatri bai is in possession, she was also in law entitled to take advantage of that presumption. Unless the defendant properly pleads and proves at the earliest stage regarding any such movables or immovables attached to the immovable property, no defendant can be heard of saying that his belongings were lying in the disputed property. - 2015 A.P.(2001) MSKLAWREPORTS

<CIVIL PROCEDURE CODE - - Or.39 Rr.1 and 2 - - Or.39 R.7 - - Suit for possession - - Interim injuction granted was made absolute - - Later on defendant filed a petition to remove and keep in safe custody certain movables laying in the disputed premises alleging that those belong to him and may get spoiled in case of demolition of the building for road widening - - Lower Court ordered handing over such articles after preparing necessary list to the respondent/defendant.         Scope and ambit  of Or.39 R.7 and when the power thereunder to be exercised - - Laid down. >HELD:         Order 39 Rule 7 CPC empowers the Court to make an order for detention, preservation and inspection of any property which is the subject matter of the suit or as to which any question may arise in the suit.  The submission that the power under Rule 7 can be exercised only in respect of the subject matter is therefore not well founded. The...
Read more

Writ - praying to declare that explanation to Section 6 of the amendment Act of 39 of 2005, Explanation: for the purpose of this Section partition means any partition made by execution of a deed of partition duly registered under the Registration Act, 1908 (16 of 1908) or partition effected by a decree of a court as unconstitutional and the same is liable to be struck down and etc; -2015 KAR(2015) msklawreports

"(i) Whether  Section 6  of the Hindu Succession Act, 1956, as amended by the Amendment Act , 2005 is prospective or retrospective in operation? (ii) Whether  Section 6  of the Hindu Succession Act, 1956 as amended by the Amendment Act , 2005 applies to daughters born prior to 17.6.1956? (iii) Whether  Section 6  of the Hindu Succession Act, 1956 as amended by the Amendment Act , 2005 applies to daughters born after 17.6.1956 and prior to 9.9.2005? (iv) Whether  Section 6  of the Hindu Succession Act, 1956 as amended by the Amendment Act , 2005 applies only to daughters born after 9.9.2005? (v) Whether the decision of the Division Bench in the case of Vaishali Ganorkar is per in curium of Gandori Koteshwaramma and others?"   In addressing an argument that the Explanation to  Section 6  clearly provides that partition means any partition made by execution of a deed duly registered under the  Registration Act , 1908...
Read more

Cancellation of Bail with out completing the investigation by police about threat on defacto complainant , is a premature one - - 2015 TELANGANA & AP.MSKLAWREPORTS

the allegation of defacto complainant is that some unknown persons on behalf of the accused,  even though they were in judicial custody, started threatening him with dire consequences if he does not come forward to compromise with them  in the case and in view of such threat he lodged report and consequently Cr.No.705 of 2014 was registered under Sections 506 and 507 IPC. Apart from it, the complainant also narrated that some of the accused were involved in other cases and rowdy sheet was opened against A1. The lower Court cancelled the bail taking the above allegations into consideration. It must be noted that the threat allegations are under investigation and the persons who allegedly threatened the defacto complainant and the connection of accused with them if any has to be found out only after through investigation by the concerned police.  However, before that exercise being completed, the lower Court came to a premature conclusion about the correctness of the...
Read more