BANK OF BOARDA Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) Solitary question which arises for consideration is whether a charge of Bank on the leasehold plot mortgaged as security towards loan will have priority over other charges of third party including the State.

(2.) The relevant facts briefly are that M/s Anmol Agro Pvt. Ltd. availed the credit facilities aggregating to Rs.6,85,00,000/-. For securing the repayment thereof, the borrower sought to create mortgage of various immovable proprieties in favour of the petitioner-Bank including lease hold rights of the property situated at Plot No.30 (part of land admeasuring 14382 sq.ft.), Industrial Area, Bargawan, Katni. It is urged that after obtaining the 'No Objection Certificate' from the lessor, the mortgage deed was executed in favour of the Bank.

(3.) Later, because of default committed by the borrower, the credit facility was classified as Non-Performing Asset on 31.12.2018. Steps were taken under Sections 13 and 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (for short, "Act of 2002") and the Rules made thereunder, viz., the Security Interest (Enforcement Rules), 2002 on 21.02.2020.