Fasttrack Tieup Pvt. Ltd. Vs Union of India & Ors. (Delhi High Court)
Delhi High Court held that it is impermissible to keep the properties attached indefinitely. Further, since dues of secured creditor takes precedence over dues of income tax dues, thus attachment order issued by income tax authority cannot be construed to be an impediment to auction sale in favour of petition.
Facts- Summit Aviation Private Limited obtained financial assistance from respondent no.3, Punjab National Bank, for the purchase of helicopters. This financial assistance was secured through a hypothecation agreement dated 12.05.2008. Subsequently, when the borrower defaulted on repayment obligations and failed to maintain financial discipline, in terms of hypothecation agreement dated 12.05.2008, respondent no.3 decided to take over the assets of the original owner (Summit Aviation Private Limited) including helicopters.
In the meantime, on 18.11.2019, respondent no.2 issued a prohibitory order due to outstanding liabilities amounting to Rs. 2783.73 lacs owed by Summit Aviation Private Limited to respondent no.1 and respondent no.2.
On 06.09.2023, the respondent no. 3 issued a communication to the Income Tax department expressing its intention to auction the two helicopters on account of it being classified as NPA and also stating that its charge over the assets had priority over the income tax dues.
