Punjab-Haryana High Court
Kotak Mahindra Bank Ltd vs The State Of Haryana And Ors on 17 February, 2014
Bench: Jasbir Singh, Harinder Singh Sidhu
CWP No. 10653 of 2006
1
IN THE HIGH COURT OF PUNJAB & HARYANA AT
CHANDIGARH
CWP No. 10653 of 2006(O&M)
Date of decision:February 17,2014
Kotak Mahindra Bank Ltd. ..... Petitioner
Versus
The State of Haryana and ors. .... Respondents
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CORAM:HON'BLE MR. JUSTICE JASBIR SINGH
HON'BLE MR.JUSTICE HARINDER SINGH SIDHU
Present: Mr. A.S. Virk, Advocate
for the petitioner.
Mr. S.S. Patter, Sr. DAG, Haryana
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JASBIR SINGH, J.(Oral)
By filing the above said writ petition, the petitioner has challenged the order dated 14.12.2005 (Annexure P/13) passed by respondent No.3 and 01.02.2006 (Annexure P/15) passed by respondent No.2.
In many writ petitions, the following question came up for consideration before this court:-
"Whether the State can invoke 'doctrine of priority of crown debt' while seeking priority of recovery of funds in the form of excise duty/other taxes against the right of the Financial Corporations?"Kumar Dinesh 2014.03.05 10:38 I attest to the accuracy and integrity of this document High Court,Chandigarh CWP No. 10653 of 2006 2
The above said question was answered in favour of the financial institutions and it was said in the judgment, decided in Civil Writ Petition No.3413 of 2005 that priority of recovering dues or such like duties under the Excise Act cannot be up-held either on the applicability of doctrine of priority of Crown debts or that any such priority has been so created under any of the provisions of the Excise Act or Rules or the Customs Act.
State counsel has failed to show anything contrary to this proposition.
In these circumstances, we set aside the earlier order dated 01.02.2006 (Annexure P-15) and remit the matter for fresh consideration to the authorities concerned in terms of the judgment passed by learned Single Judge, as referred to above in Union of India v. Punjab Financial Corporation, Chandigarh and another, bearing CWP No.3413 of 2005, decided in the month of December, 2006.
However, till final order is passed, the recovery shall remain stayed.
(JASBIR SINGH ) JUDGE ( HARINDER SINGH SIDHU ) JUDGE 17.02.2014 dinesh Kumar Dinesh 2014.03.05 10:38 I attest to the accuracy and integrity of this document High Court,Chandigarh