CSB BANK LTD Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) M/S CSB Bank Ltd. Formerly known as Catholic Syrian Bank Ltd is the petitioner in the instant writ petition challenge the sale notice dated 25.2.2020 passed by the 2nd respondent ie. Thahasildar,Thodupuzha in respect of the property mortgaged with them since 11.12.2015 vide Exts.P3 and P4. Learned Counsel appearing on behalf of the petitioner submits that the party respondents 3 and 4 had obtained the facility of loan from the petitioner Bank and in lieu thereof mortgaged the property situated at Karikode Village, Thodupuzha, Idukki District vide Exts.P3 and P4 dated 11.12.2015 by referring to the documents Exts.P3 P4, P5 letters of confirmation, letter of mortgage etc.

(2.) Since there was a default, the account under the said credit facilities was classified as Non-performing Asset on 31.5.2017 and initated SARFAESI proceedings by issuing notice under Section 13 (2) demand notice vide Ext.P6. Original application under the recovery of debts to the Bank Act, 1993 was also filed. During the interregnum, the impugned notice Ext.P2 was issued by the Thahasildar for sale of the property for recovery of the arrears of sale tax amounting to Rs.14 lakhs and an odd amount. Learned Counsel for the petitioner submitted that the aforementioned action is not sustainable under law, in view of a plain and simple reading of the provisions under Section 26E of the SARFAESI Act and 31B of RDB Act 1993. Reliance has been placed on judgments rendered by this Court in various writ petitions including W.P.(C)No.28316/2016 dated 30.7.2019. Learned Counsel further submits that since petitioner is a secured creditor of the attached properties, it has the first charge and the priority over all other debts.

(3.) Learned Government Pleader does not dispute the applicability of the aforementioned provisions and submits that the writ appeal Nos. 2449/20, 132/20, 133/20, 241/20, 144/20 and 241/20 against the aforementioned writ petitions are pending consideration.