The Branch Manager vs The Commercial Tax Officer
2021 Latest Caselaw 1670 Mad

                                                        1        W.P.(MD)NO.8764 OF 2013

                            BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                             DATED: 25.01.2021

                                                   CORAM

                          THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN

                                          W.P.(MD)No.8764 of 2013

                      The Branch Manager,
                      The Tamil Nadu Industrial Investment
                         Corporation Limited,
                      D.No.1130-C, First Floor,
                      Opp. To Sothurani, Ramnad-Rameswaram Road,
                      Bharathi Nagar, Ramanathapuram.        ... Petitioner
                                                     Vs.

                      1. The Commercial Tax Officer,
                         Mudukulathur,
                         Ramanathapuram District.

                      2. M/s.A1 Aqua Pipes(India) Pvt. Ltd.,
                         No.6, Uppoorani East Lane,
                         Abiramam – 623 601,
                         Ramanathapuram District.                  ... Respondents

                                Prayer: Writ petition is filed under Article 226 of the
                      Constitution of India, to issue a Writ of Certiorari, calling for
                      the records pertaining to the impugned sale notice bearing
                      Na.Ka.No.A3/7/99 dated 03.05.2013 on the file of the first
                      respondent and quash the same.
                                For Petitioner   : Mr.G.Murugan
                                For R-1          : Ms.J.Padmavathi Devi,
                                                   Special Government Pleader.

                                                    ***

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                                                           2        W.P.(MD)NO.8764 OF 2013



                                                  ORDER

Heard the learned counsel on either side.

2. The petitioner had advanced loan to the second

respondent. The petitioner became a secured creditor.

However, this was in the year 1990. The second respondent

had committed default and the petitioner wanted to proceed

against the secured asset. But then, the petitioner was unable

to do so because of the impugned proceedings issued by the

first respondent, namely, the Commercial Tax Officer,

Muthukulathur. The stand of the first respondent is that the

second respondent is a registered assessee and that they are

entitled to proceed against the property in question for

liquidating the sales tax arrears.

3. Now the question is who will have the priority

whether it will be the Tamil Nadu Industrial Investment

Corporation or the Commercial Tax Department. The issue is

no longer res integra. As pointed out by the learned counsel

appearing for the petitioner, the Full Bench of the Madras

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3 W.P.(MD)NO.8764 OF 2013

High Court in the decision reported in 2016 (6) CTC

769(Assistant Commissioner(CT) V. Indian Overseas Bank)

had answered the issue in favour of the secured creditor. I had

followed the said Judgment in W.P.(MD)No.19827 of 2018 vide

order dated 09.11.2018.

4. In the recent decision of the Madras High Court,

namely, W.P.No.13385 of 2020, dated 01.10.2020, the very

same issue came up for consideration. I am of the view that

the recent view which favours the secured creditor.

5. Therefore following those precedents, notice

impugned in this writ petition is quashed. This writ petition

stands allowed. No costs.

                                                                                             25.01.2021

                      Index    : Yes / No
                      Internet : Yes/ No
                      pmu

Note : 1. Issue order copy within one day after the same received by the Court Officers Section.

2. In view of the present lock down owing to COVID-19 pandemic, a web copy of the order may be utilized for official purposes, but, ensuring that the copy of the order that is presented is the correct copy, shall be the responsibility of the advocate/litigant concerned.

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                                                          4       W.P.(MD)NO.8764 OF 2013

                                                               G.R.SWAMINATHAN,J.


                                                                                    pmu

                      To:

                            The Commercial Tax Officer,
                            Mudukulathur,
                            Ramanathapuram District.




                                                              W.P.(MD)No.8764 of 2013




                                                                            25.01.2021




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