INDIAN BANK Vs. STATE OF KERALA AND ORS.

JUDGEMENT

(1.) The appellant approached this Court to challenge the notice, exhibit P3, by which it was informed that the State had to recover an amount of Rs. 9,62,835 along with interest on account of sales tax from M/s. Maxwell Exim Foods Limited. This amount was due on account of the levy of sales tax for the assessment year 1991-92. The bank claimed that the property was mortgaged with it and that on the security of the property, it had given loan to the said unit. Thus, it had a right to recover the money by the sale of the mortgaged property.

(2.) The matter was considered by the learned single Judge. In view of the provision contained in Section 26-B of the Kerala General Sales Tax Act, 1963 the learned single Judge held that the State had the prior right to recover the arrears to tax. Thus, the writ petition was dismissed. Hence, this appeal by the bank.

(3.) Mr. E. Subramani, learned Counsel for the appellant, contends that the bank is a secured creditor. Thus, it is entitled to recover the amount.