JM Financial Asset Reconstruction Co Ltd. And Ors. Vs State of Maharashtra (Bombay High Court)
The Bombay High Court considered a writ petition that was urgently circulated following a notice issued by the Recovery Officer, Debts Recovery Tribunal-II (DRT), Mumbai, for settling a sale proclamation in relation to certain properties. The petitioners submitted that the central issue in the writ petition was already covered in their favour by the Full Bench decision of the Bombay High Court in Jalgaon Janta Sahakari Bank Ltd. & Anr. vs. Joint Commissioner of Sales Tax Nodal 9, Mumbai, & Anr.
According to the petitioners, in view of the law laid down in the Full Bench judgment, no encumbrance relating to the dues claimed by respondent Nos. 2 and 3 could be recorded against the subject properties. The Court also noted that, on the previous date of hearing, the matter had been adjourned to enable respondent Nos. 2 and 3 to place material on record indicating whether the steps contemplated under the Maharashtra Land Revenue Code had actually been undertaken in relation to the dues claimed by them.
The petitioners further contended that the latest action initiated by the Recovery Officer of the DRT would prejudice them, as the sale proclamation concerning the scheduled properties would reflect an encumbrance in respect of the dues claimed by respondent Nos. 2 and 3.
