E.D.C. LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) HEARD Mr. M.S. Sonak, learned Counsel on behalf of the Appellant/Defendant No. 2 in Civil Suit No. 9 of 2007. The defendant No. 1 has chosen to remain absent yesterday and today.

(2.) IT appears that the Department of Customs and Central Excise has to recover a sum of Rs. 15,62,020/ - from defendant No. 1. Defendant No. 1 had plots No. 254 and 255 situated at Kundaim Industrial Estate mortgaged to defendant No. 2 for a loan of Rs. 35,00,000/ - and odd. Defendant No. 2 had attached the said plots under Section 29 of the State Financial Corporation Act, 1951 and it is the contention of defendant No. 2 that in due course of time defendant No. 2 was entitled to sell the said plots with a view to recover the amount due to defendant No. 2 towards the loan advanced by them to defendant No. 1. The contention which was raised before the learned trial Court and accepted by the learned trial Court was that the Department of Customs and Central Excise had a lien and first charge over the goods attached vide panchanama dated 10 -3 -2003.

(3.) IT was the further contention of the Department of Customs and Central Excise that the Central Government through the said Department of Customs and Central Excise would also have precedence over the dues which defendant No. 2 would fetch after selling the said two plots mortgaged to them.