Bank’s Registered Security Interest with CERSAI Takes Priority Over Tax Authorities’ Claim: Bombay HC

Janaseva Sahakari Bank Ltd. Vs State of Maharashtra (Bombay High Court) The petitioner is a bank. It lent money to a borrower. The borrower mortgaged its property. The bank registered security interest with CERSAI. The loan was declared as NPA. The bank issued notice under section 13(2) of the SARFESAI Act. It filed securitization application. In the mean time, the sales tax and GST authorities initiated recovery action under section 79(1) of GST Act against the borrower. The sales tax authorities sought to attach the said properties by creating mutation entries in the land revenue records und...