State Cannot Claim Preference over secured Assets for recovery of Tax Dues

Axis Bank Limited Vs. State of Gujarat & 5 Others (Gujarat High Court) It is the case of the bank that in accordance with the provisions of the SARFAESI Act, more particularly, Section-26E and also, in view of the two pronouncements of this High Court one in the case of Bank of India vs. State of Gujarat and others; and another in the case of Kalupur Commercial Co-operative Bank Ltd. vs. State of Gujarat, the bank will have the first precedence and the department cannot put forward its claim for the purpose of recovering the dues towards VAT. What came to be purchased by the writ-applicant...