PUNJAB NATIONAL BANK Vs. STATE OF HARYANA

JUDGEMENT

(1.) THE petitioner -Bank has approached this Court with a prayer for quashing attachment order dated 4th June, 2008 passed by the Collector -cum -Deputy Excise and Taxation Commissioner, Kaithal, seeking to recover arrears of sales tax under the Haryana General Sales Tax Act, 1973 (for brevity, "the HGST Act") or Central Sales Tax Act, 1956. in respect of M/s Jiwan Rice and General Mill and M/s Jiwan Rice International (P). Ltd.. Kaithal. A further direction has also been sought restraining respondent No. 2 to sell the property pursuant to attachement order, which is claimed to be mortgaged with the petitioner -Bank. The petitioner -Bank has claimed to be a secured creditor and a charge holder. Consequently, the relief of quashing order of sale of the mortgaged property dated 20th March. 2009 has also been sought. As an interim measure, the petitioner had also prayed for staying the auction fixed on 20th March. 2009.

(2.) WHEN the matter came up for motion hearing on 19th March, 2009, a Division Bench, while issuing notice of motion, directed that the auction may be held but the same may not be confirmed without specific order in that regard from this Court.

(3.) THE aforesaid loan was not repaid by respondent No. 3 and an application for recovery of Rs. 3,12,65,884.95 paisa as on 12th April. 2004 was filed before the Debt Recovery Tribunal. The petitioner -Bank has also claimed its entitlement to recover further interest till final realization of its entire dues. Accordingly, the petitioner -Bank on 23rd February, 2004, being a secured creditor issued a notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act. 2002 (for brevity, 'the Securitization Act'). On the failure of respondent No. 3 to pay the amount demanded through the notice issued under Section 13(2) of the Securitization Act. the petitioner -Bank decided to take possession of the property in terms of Section 13(4)(a) on 28th October, 2004. A notice to that effect was published at the instance of the petitioner -Bank in two Newspapers on 29th October, 2004.