NILESH KESHAVLAL MODI Vs. STATE OF GUJARAT

JUDGEMENT

(1.) Petition is preferred by the petitioner seeking extraordinary jurisdiction to delete the charge created under Gujarat Value Added Tax Act for the property owned by the petitioner as per the private treaty under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and Rule 8(5) read with Rule (6) of the Security Interest Rules, 2002 (Security Rules).

(2.) The entire premise of the petitioner is that the provisions contained in SARFAESI Act have an overriding effect over the provisions of the VAT Act and the secured creditors shall have priority over the dues of Central Excise Department. The act of creating a charge over the property, which has been bought by the petitioners (purchasers for recovering dues of erstwhile owners) is totally without jurisdiction and hence, the present petition with the following reliefs;

(3.) The petitioners are purchasers of the property sold by the secured creditors viz the COSMOS Co-operative Bank Limited, upon which, the impugned charge is created and, thereafter, the mutation entry, being 2374, was passed in village Form No.6. Respondent No.1 is the Commissioner of State Tax/Commercial Tax, who exercises jurisdiction under the provisions of VAT Act and the GST Act.