SARFAESI Act Charge Takes Precedence Over Later created GST Act Charge: Karnataka HC

Canara Bank Vs State of Karnataka (Karnataka High Court)

Karnataka High Court held that the charge created earlier in time would have precedence. Thus, since charge under the SARFAESI Act was created before the charge under the GST Act, the SARFAESI Act charge would take precedence.

Facts-

The petitioner contends that Respondents No. 4 and 5 had availed a mortgage loan from the petitioner bank for their partnership concern. As regards which the residential flat it was provided as security for the loan. The loan became a non­performing asset on 1.12.2

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