w w w . L a w y e r S e r v i c e s . i n



State Bank of India, A Government of India Undertaking Rep by its DGM and Branch Head Stressed Asset Management Branch, Hyderabad v/s The Union of India, Ministry of Finance Rep by its Secretary Services Tax Wing, South Block, New Delhi & Others


Company & Directors' Information:- L & T FINANCE LIMITED [Amalgamated] CIN = U65990MH1994PLC083147

Company & Directors' Information:- S P FINANCE PRIVATE LIMITED [Active] CIN = U65990MH1979PTC021790

Company & Directors' Information:- UNION ASSET MANAGEMENT COMPANY PRIVATE LIMITED [Active] CIN = U65923MH2009PTC198201

Company & Directors' Information:- H & R BLOCK (INDIA) PRIVATE LIMITED [Active] CIN = U72900PN2006PTC128344

Company & Directors' Information:- V L S FINANCE LIMITED [Active] CIN = L65910DL1986PLC023129

Company & Directors' Information:- SOUTH INDIA CORPN PRIVATE LIMITED [Active] CIN = U51102TN1935PTC002652

Company & Directors' Information:- L R N FINANCE LIMITED [Active] CIN = U65921TN1992PLC089288

Company & Directors' Information:- S M FINANCE LTD [Active] CIN = L65999TG1984PLC004526

Company & Directors' Information:- J R D FINANCE LTD [Active] CIN = L65999WB1993PLC058107

Company & Directors' Information:- B R D FINANCE LIMITED [Active] CIN = U65910KL1995PLC009430

Company & Directors' Information:- T C I FINANCE LIMITED [Active] CIN = U65920MH1973PLC017042

Company & Directors' Information:- S. M. MANAGEMENT PRIVATE LIMITED [Active] CIN = U74140AS2005PTC007642

Company & Directors' Information:- A. V. B. FINANCE PRIVATE LIMITED. [Active] CIN = U65993DL1992PTC049818

Company & Directors' Information:- S M L FINANCE LIMITED [Active] CIN = U65910KL1996PLC010648

Company & Directors' Information:- I SERVICES INDIA PRIVATE LIMITED [Active] CIN = U72900DL2003PTC118851

Company & Directors' Information:- S B FINANCE PVT LTD [Strike Off] CIN = U65921TG1988PTC008268

Company & Directors' Information:- INDIA FINANCE LTD. [Active] CIN = L65110WB1984PLC050214

Company & Directors' Information:- J J FINANCE CORPORATION LTD [Active] CIN = L65921WB1982PLC035092

Company & Directors' Information:- G V S FINANCE PVT LTD [Strike Off] CIN = U65921TG1988PTC008269

Company & Directors' Information:- S T SERVICES LTD [Active] CIN = L74140WB1989PLC047210

Company & Directors' Information:- BANK OF INDIA LIMITED [Active] CIN = U99999MH1906PLC000243

Company & Directors' Information:- G T P FINANCE LIMITED [Active] CIN = U65921TZ1991PLC003149

Company & Directors' Information:- M G F SERVICES LIMITED [Amalgamated] CIN = U65910DL1987PLC029599

Company & Directors' Information:- S R K FINANCE PRIVATE LIMITED [Active] CIN = U65910UP1994PTC016038

Company & Directors' Information:- R S SERVICES PRIVATE LIMITED [Active] CIN = U65100DL1989PTC038061

Company & Directors' Information:- R S SERVICES PRIVATE LIMITED [Active] CIN = U74900DL1989PTC038061

Company & Directors' Information:- S J SERVICES PRIVATE LIMITED [Active] CIN = U74140DL1988PTC034427

Company & Directors' Information:- C & K MANAGEMENT LIMITED [Active] CIN = U91990TG2000PLC033293

Company & Directors' Information:- G K MANAGEMENT SERVICES (INDIA) LIMITED [Active] CIN = U74140TZ1999PLC009001

Company & Directors' Information:- R N FINANCE LIMITED [Active] CIN = U74899DL1988PLC034289

Company & Directors' Information:- J R D FINANCE LTD [Active] CIN = U65999WB1993PLC058107

Company & Directors' Information:- L N FINANCE LTD [Active] CIN = U65923WB1991PLC052876

Company & Directors' Information:- R K FINANCE LTD [Active] CIN = L65921WB1983PLC035896

Company & Directors' Information:- AMP E - SERVICES PRIVATE LIMITED [Active] CIN = U51909MN2013PTC008361

Company & Directors' Information:- E M SERVICES (INDIA) PRIVATE LIMITED [Active] CIN = U93090MH2001PTC131924

Company & Directors' Information:- V P C L FINANCE LIMITED [Active] CIN = U65920TG1996PLC023172

Company & Directors' Information:- L M J SERVICES LTD [Active] CIN = L51226WB1983PLC035807

Company & Directors' Information:- L M J SERVICES LTD [Active] CIN = L93000WB1983PLC035807

Company & Directors' Information:- G K SERVICES PRIVATE LIMITED [Active] CIN = U65990MH1994PTC078529

Company & Directors' Information:- J S M FINANCE PVT LTD [Active] CIN = U74140MP1995PTC009542

Company & Directors' Information:- I & D FINANCE PRIVATE LIMITED [Strike Off] CIN = U65191TN1991PTC021369

Company & Directors' Information:- UNION FINANCE LIMITED [Strike Off] CIN = U65910GJ1994PLC023717

Company & Directors' Information:- S M MANAGEMENT PVT LTD [Not available for efiling] CIN = U74140WB1992PTC002848

Company & Directors' Information:- S M MANAGEMENT PVT LTD [Not available for efiling] CIN = U74140WB1992PTC057260

Company & Directors' Information:- A K SERVICES PRIVATE LIMITED [Active] CIN = U74899MH1986PTC268851

Company & Directors' Information:- L N FINANCE PVT LTD [Active] CIN = U65929AS1992PTC003766

Company & Directors' Information:- T P D FINANCE LIMITED [Strike Off] CIN = U67120RJ1994PLC008051

Company & Directors' Information:- R G L FINANCE COMPANY PRIVATE LIMITED [Active] CIN = U74899DL1983PTC015809

Company & Directors' Information:- S K B FINANCE LIMITED [Amalgamated] CIN = U65999WB1996PLC082317

Company & Directors' Information:- B V SERVICES PVT LTD [Active] CIN = U74140WB1991PTC050946

Company & Directors' Information:- J V FINANCE PRIVATE LIMITED [Strike Off] CIN = U74899DL1985PTC067873

Company & Directors' Information:- L C J FINANCE PVT. LTD. [Active] CIN = U65921WB1995PTC068809

Company & Directors' Information:- I S A SERVICES PRIVATE LIMITED [Active] CIN = U74140JH1995PTC006387

Company & Directors' Information:- A G S MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U45208TG2011PTC077420

Company & Directors' Information:- H L T FINANCE PRIVATE LIMITED [Strike Off] CIN = U65921DL1996PTC078128

Company & Directors' Information:- E I C SERVICES PRIVATE LIMITED [Strike Off] CIN = U74899DL1985PTC022426

Company & Directors' Information:- T T FINANCE LIMITED [Amalgamated] CIN = U67120DL1986PLC023168

Company & Directors' Information:- M M V R FINANCE LIMITED [Active] CIN = U65921TZ1997PLC007705

Company & Directors' Information:- D B FINANCE PRIVATE LIMITED [Active] CIN = U65191TN1989PTC016705

Company & Directors' Information:- B J MANAGEMENT SERVICES LIMITED [Amalgamated] CIN = U74140WB2004PLC100864

Company & Directors' Information:- C H P FINANCE PVT LTD [Active] CIN = U65921PB1992PTC012788

Company & Directors' Information:- A C SERVICES PRIVATE LIMITED [Active] CIN = U74899DL1995PTC070774

Company & Directors' Information:- S L B P FINANCE PRIVATE LIMITED [Active] CIN = U74899DL1990PTC041694

Company & Directors' Information:- R S FINANCE PVT LTD [Active] CIN = U65191WB1988PTC044144

Company & Directors' Information:- I C FINANCE PRIVATE LIMITED [Active] CIN = U65921UP1989PTC011236

Company & Directors' Information:- H S SERVICES PRIVATE LIMITED [Active] CIN = U74900KA2014PTC074321

Company & Directors' Information:- V K FINANCE PVT LTD [Strike Off] CIN = U67120WB1991PTC052140

Company & Directors' Information:- G V INDIA SERVICES PRIVATE LIMITED [Active] CIN = U74900DL2010PTC212026

Company & Directors' Information:- C AND N FINANCE PRIVATE LIMITED [Strike Off] CIN = U65921DL1998PTC094290

Company & Directors' Information:- C D R FINANCE LIMITED [Strike Off] CIN = U65910TG1995PLC022237

Company & Directors' Information:- J R FINANCE LIMITED [Active] CIN = U65921PB1996PLC017699

Company & Directors' Information:- I C S FINANCE LIMITED [Strike Off] CIN = U65921TZ1987PLC001991

Company & Directors' Information:- D D S FINANCE PRIVATE LIMITED [Strike Off] CIN = U65910DL1996PTC076165

Company & Directors' Information:- K V L FINANCE LIMITED [Strike Off] CIN = U65191TN1989PLC016715

Company & Directors' Information:- D A S FINANCE PVT LIMITED [Strike Off] CIN = U65921PB1993PTC012888

Company & Directors' Information:- U B FINANCE PRIVATE LIMITED [Strike Off] CIN = U74899DL1992PTC051300

Company & Directors' Information:- A TO Z SERVICES PRIVATE LIMITED [Active] CIN = U74999MH2007PTC168484

Company & Directors' Information:- V L G FINANCE PRIVATE LIMITED [Strike Off] CIN = U65910AP1997PTC027952

Company & Directors' Information:- E M S FINANCE PRIVATE LIMITED [Strike Off] CIN = U65921TZ1986PTC001789

Company & Directors' Information:- O P T SERVICES INDIA PRIVATE LIMITED [Active] CIN = U63013DL1996PTC083397

Company & Directors' Information:- T D M FINANCE COMPANY PRIVATE LIMITED [Active] CIN = U65923KL1997PTC011601

Company & Directors' Information:- S. F. FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U65921PB1996PTC018702

Company & Directors' Information:- D S L FINANCE PRIVATE LIMITED [Active] CIN = U65921TG1996PTC023898

Company & Directors' Information:- M K MANAGEMENT SERVICES PRIVATE LTD [Converted to LLP] CIN = U74899DL1987PTC029774

Company & Directors' Information:- P P SERVICES PVT LTD [Active] CIN = U70101WB1991PTC051423

Company & Directors' Information:- A P T SERVICES PRIVATE LIMITED [Amalgamated] CIN = U29219TG1999PTC031903

Company & Directors' Information:- S R K C FINANCE LIMITED [Amalgamated] CIN = U65999TZ1989PLC002445

Company & Directors' Information:- S S SERVICES PVT LTD [Active] CIN = U51109AS1993PTC003956

Company & Directors' Information:- G & G SERVICES PRIVATE LIMITED [Active] CIN = U45201DL2012PTC230905

Company & Directors' Information:- R K N FINANCE PRIVATE LIMITED [Strike Off] CIN = U65191TN1997PTC038377

Company & Directors' Information:- H A FINANCE PRIVATE LIMITED [Strike Off] CIN = U65993DL1987PTC027064

Company & Directors' Information:- V V A FINANCE LTD [Active] CIN = U65993WB1984PLC037171

Company & Directors' Information:- P. C. I. MANAGEMENT SERVICES LIMITED [Active] CIN = U67100MH2002PLC137588

Company & Directors' Information:- Y B FINANCE PRIVATE LIMITED [Strike Off] CIN = U65921CH1996PTC017745

Company & Directors' Information:- C S MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U74140KA2004PTC035231

Company & Directors' Information:- A N Y SERVICES PRIVATE LIMITED [Active] CIN = U74899DL1995PTC071457

Company & Directors' Information:- N B SERVICES PRIVATE LIMITED [Active] CIN = U74899DL1993PTC056484

Company & Directors' Information:- P C SERVICES PRIVATE LIMITED [Strike Off] CIN = U00894KA1985PTC006606

Company & Directors' Information:- M S R FINANCE PVT LTD [Strike Off] CIN = U65191TN1989PTC016789

Company & Directors' Information:- S S P FINANCE PRIVATE LIMITED [Strike Off] CIN = U65191TN1987PTC014526

Company & Directors' Information:- M. V. S SERVICES INDIA PRIVATE LIMITED [Active] CIN = U93000DL2013PTC252172

Company & Directors' Information:- K AND P MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U74120MH1988PTC099793

Company & Directors' Information:- S D SERVICES PVT LTD [Active] CIN = U51109AS1998PTC005293

Company & Directors' Information:- H S D MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U65921PB1997PTC015193

Company & Directors' Information:- N P MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U70100MH2003PTC143620

Company & Directors' Information:- H AND B SERVICES LIMITED [Strike Off] CIN = U72900MH2004PTC145775

Company & Directors' Information:- I FINANCE COMPANY LIMITED [Active] CIN = U67110DL2011PLC212268

Company & Directors' Information:- C & R SERVICES (INDIA) PRIVATE LIMITED [Active] CIN = U74140KA1996PTC019645

Company & Directors' Information:- E AND A SERVICES (INDIA) PRIVATE LIMITED [Under Process of Striking Off] CIN = U51900MH1989PTC054373

Company & Directors' Information:- A. H. SERVICES PRIVATE LIMITED [Active] CIN = U74990MH2009PTC193917

Company & Directors' Information:- M E R I T SERVICES PRIVATE LIMITED [Strike Off] CIN = U51900MH1999PTC118445

Company & Directors' Information:- H AND Z FINANCE PRIVATE LIMITED [Active] CIN = U67190MH1995PTC093153

Company & Directors' Information:- P F P SERVICES PRIVATE LIMITED [Active] CIN = U74900MH2009PTC293633

Company & Directors' Information:- W P MANAGEMENT INDIA PRIVATE LIMITED [Active] CIN = U40100TG2016PTC112006

Company & Directors' Information:- P F P SERVICES PRIVATE LIMITED [Active] CIN = U74900WB2009PTC139742

Company & Directors' Information:- Y AND K FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U74899DL1985PTC019837

Company & Directors' Information:- J. S. P. SERVICES PRIVATE LIMITED [Active] CIN = U63040DL1996PTC075731

Company & Directors' Information:- S L P FINANCE PRIVATE LTD. [Strike Off] CIN = U65923DL1985PTC021970

Company & Directors' Information:- V M FINANCE LIMITED [Strike Off] CIN = U65910PB1996PLC018339

Company & Directors' Information:- D S K FINANCE LIMITED [Strike Off] CIN = U65910UP1988PLC010317

Company & Directors' Information:- G B V FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U65110UP1988PTC010219

Company & Directors' Information:- B H FINANCE PRIVATE LIMITED [Strike Off] CIN = U65922KA1995PTC018390

Company & Directors' Information:- M .R .S . FINANCE LIMITED [Strike Off] CIN = U65929DL1995PLC067184

Company & Directors' Information:- HYDERABAD FINANCE PVT LTD [Strike Off] CIN = U65910TG1987PTC007966

Company & Directors' Information:- H D FINANCE LTD [Strike Off] CIN = U67120DL1986PLC023675

Company & Directors' Information:- INDIA SERVICES LIMITED [Liquidated] CIN = U99999TN1946PLC000976

Company & Directors' Information:- P R K FINANCE P LTD [Strike Off] CIN = U65191TN1995PTC033478

Company & Directors' Information:- U M S SERVICES LIMITED [Active] CIN = U03210TZ1982PLC001208

Company & Directors' Information:- S R MANAGEMENT PRIVATE LIMITED [Active] CIN = U74140MH2000PTC129839

Company & Directors' Information:- SERVICES (INDIA) PRIVATE LIMITED [Active] CIN = U74140DL1996PTC078465

Company & Directors' Information:- G I SERVICES INDIA LIMITED [Active] CIN = U74140DL2008PLC184088

Company & Directors' Information:- E AND E SERVICES LIMITED [Strike Off] CIN = U65992KL1988PLC005094

Company & Directors' Information:- T AND C FINANCE LIMITED [Strike Off] CIN = U67120RJ1996PLC012576

Company & Directors' Information:- E E S MANAGEMENT SERVICES PVT LTD [Active] CIN = U74140TG1984PTC005010

Company & Directors' Information:- W S FINANCE PRIVATE LIMITED [Strike Off] CIN = U65192UP1996PTC020243

Company & Directors' Information:- S R V N SERVICES PRIVATE LIMITED [Strike Off] CIN = U50200DL2004PTC124035

Company & Directors' Information:- B H SERVICES (INDIA) PRIVATE LIMITED [Active] CIN = U74999MH2012FTC227035

Company & Directors' Information:- S A C FINANCE COMPANY PVT LTD [Active] CIN = U65999WB1985PTC039002

Company & Directors' Information:- N BANK LTD [Strike Off] CIN = U65191WB1924PLC000442

Company & Directors' Information:- M M MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74900DL2009PTC195088

Company & Directors' Information:- A R SERVICES PRIVATE LIMITED [Active] CIN = U00000DL2001PTC109578

Company & Directors' Information:- J AND J SERVICES PRIVATE LIMITED [Active] CIN = U51900MH1995PTC092554

Company & Directors' Information:- L B D SERVICES PRIVATE LIMITED [Active] CIN = U00359BR1991PTC004694

Company & Directors' Information:- S K A MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U74899DL1985PTC021722

Company & Directors' Information:- V M G MANAGEMENT PRIVATE LIMITED [Strike Off] CIN = U74140WB2011PTC160061

Company & Directors' Information:- TAX & FINANCE SERVICES INDIA PRIVATE LIMITED [Strike Off] CIN = U74140KA2010PTC055699

Company & Directors' Information:- BANK OF NEW INDIA LIMITED [Strike Off] CIN = U65110KL1999PLC000132

Company & Directors' Information:- C C FINANCE PRIVATE LIMITED [Strike Off] CIN = U65191TN1997PTC037805

Company & Directors' Information:- S R B FINANCE LIMITED [Strike Off] CIN = U65910UP1988PLC010045

Company & Directors' Information:- P V FINANCE PRIVATE LIMITED [Strike Off] CIN = U65993DL1987PTC027270

Company & Directors' Information:- R V S FINANCE PRIVATE LIMITED [Strike Off] CIN = U65990KA1995PTC018436

Company & Directors' Information:- M P SERVICES INDIA PRIVATE LIMITED [Strike Off] CIN = U74999PN1999PTC013531

Company & Directors' Information:- B I N A R Y SERVICES (INDIA) PRIVATE LIMITED [Strike Off] CIN = U72900DL2000PTC103072

Company & Directors' Information:- M C SERVICES (INDIA) PRIVATE LIMITED [Strike Off] CIN = U74999PN1999PTC013532

Company & Directors' Information:- D & D SERVICES INDIA PRIVATE LIMITED [Strike Off] CIN = U51909DL1998PTC093967

Company & Directors' Information:- M B MANAGEMENT PVT LTD [Strike Off] CIN = U99999MH1981PTC025914

Company & Directors' Information:- P AND B FINANCE PVT LTD [Strike Off] CIN = U99999MH1986PTC038841

Company & Directors' Information:- B B P FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U65921PB1996PTC018183

Company & Directors' Information:- H AND R BLOCK (INDIA) PRIVATE LIMITED [Strike Off] CIN = U00892PN2006PTC128344

Company & Directors' Information:- NEW INDIA FINANCE LTD. [Strike Off] CIN = U65999WB1991PLC051652

Company & Directors' Information:- A E FINANCE PRIVATE LIMITED [Active] CIN = U65999TZ1990PTC002905

Company & Directors' Information:- L R FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U65910UP1988PTC009758

Company & Directors' Information:- S B M FINANCE LIMITED [Strike Off] CIN = U65921PB1994PLC014374

Company & Directors' Information:- T A S FINANCE PVT LTD [Strike Off] CIN = U65191TN1990PTC018654

Company & Directors' Information:- S C L SERVICES PRIVATE LIMITED [Active] CIN = U63012TN2001PTC046650

Company & Directors' Information:- A B SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140DL1998PTC093545

Company & Directors' Information:- G P SERVICES PRIVATE LIMITED [Strike Off] CIN = U74899DL1989PTC037683

Company & Directors' Information:- D C MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U70101DL1998PTC094035

Company & Directors' Information:- T S SERVICES PRIVATE LIMITED [Strike Off] CIN = U85320WB2003PTC095712

Company & Directors' Information:- R P MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74999WB2008PTC122192

Company & Directors' Information:- D AND O FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U74899DL1993PTC054788

Company & Directors' Information:- K AND P MANAGEMENT SERVICES PRIVATE LIMITED [Not available for efiling] CIN = U00893KA1988PTC009632

Company & Directors' Information:- H R P FINANCE PRIVATE LIMITED [Strike Off] CIN = U65921PB1995PTC015715

Company & Directors' Information:- P T R FINANCE PRIVATE LIMITED [Strike Off] CIN = U65191TN1989PTC016795

Company & Directors' Information:- R AND T SERVICES PRIVATE LTD. [Strike Off] CIN = U72501DL1998PTC096640

Company & Directors' Information:- S S SERVICES PVT LTD [Strike Off] CIN = U74140WB1988PTC044009

Company & Directors' Information:- K AND P MANAGEMENT SERVICES PRIVATE LIMITED [Not available for efiling] CIN = U99999MH1996PTC099793

Company & Directors' Information:- B & S FINANCE PVT LTD [Strike Off] CIN = U65191TN1988PTC015491

Company & Directors' Information:- P N N BANK LIMITED [Strike Off] CIN = U65921TZ1948PLC000153

Company & Directors' Information:- S. U. MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140RJ2012PTC041109

Company & Directors' Information:- H S B FINANCE PVT LTD [Strike Off] CIN = U67120RJ1996PTC012119

Company & Directors' Information:- S S D SERVICES PRIVATE LIMITED [Active] CIN = U74910RJ1996PTC012694

Company & Directors' Information:- V & V SERVICES PRIVATE LIMITED [Strike Off] CIN = U74990MH2010PTC206211

Company & Directors' Information:- D S SERVICES PRIVATE LIMITED [Strike Off] CIN = U65923MH2012PTC226482

Company & Directors' Information:- E TAX SERVICES PRIVATE LIMITED [Active] CIN = U93030MH2012PTC238948

Company & Directors' Information:- P AND I SERVICES PRIVATE LIMITED [Active] CIN = U63090MH1981PTC024997

Company & Directors' Information:- F F C SERVICES PRIVATE LIMITED [Active] CIN = U74900PN2014PTC153348

Company & Directors' Information:- D P M C K MANAGEMENT SERVICES PRIVATE LIMITED [Active] CIN = U74999MH2002PTC135462

Company & Directors' Information:- R. B. SERVICES PRIVATE LIMITED [Active] CIN = U74999MH2017PTC302692

Company & Directors' Information:- A F MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74120MH2014PTC256072

Company & Directors' Information:- W P MANAGEMENT INDIA PRIVATE LIMITED [Active] CIN = U45201TG2016PTC112006

Company & Directors' Information:- S N SERVICES PRIVATE LIMITED [Strike Off] CIN = U74900JK2014PTC004110

Company & Directors' Information:- R N SERVICES PRIVATE LIMITED [Strike Off] CIN = U74900CH2013PTC034757

Company & Directors' Information:- NEW DELHI E SERVICES PRIVATE LIMITED [Active] CIN = U72900DL2007PTC165097

Company & Directors' Information:- C & A MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140DL2007PTC159565

Company & Directors' Information:- A & Y MANAGEMENT SERVICES PRIVATE LIMITED [Converted to LLP] CIN = U74140DL2007PTC171421

Company & Directors' Information:- A Y SERVICES PRIVATE LIMITED [Active] CIN = U74140DL2012PTC239759

Company & Directors' Information:- DELHI SERVICES PRIVATE LIMITED [Strike Off] CIN = U74999DL1950PTC001721

Company & Directors' Information:- V. S. SERVICES PRIVATE LIMITED [Strike Off] CIN = U74999DL2012PTC233958

Company & Directors' Information:- S & V SERVICES PRIVATE LIMITED [Active] CIN = U74999DL2015PTC287145

Company & Directors' Information:- R S V MANAGEMENT & SERVICES PRIVATE LIMITED [Active] CIN = U72200DL2010PTC203427

Company & Directors' Information:- A R J SERVICES PRIVATE LIMITED [Active] CIN = U72200DL2015PTC286948

Company & Directors' Information:- L & K MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U93000DL2010PTC205793

Company & Directors' Information:- M K R SERVICES PRIVATE LIMITED [Strike Off] CIN = U93000DL2012PTC242159

Company & Directors' Information:- I & J MANAGEMENT PRIVATE LIMITED [Active] CIN = U93000DL2016PTC292375

Company & Directors' Information:- M A MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74899DL2005PTC138121

Company & Directors' Information:- G W SERVICES PVT LTD [Strike Off] CIN = U79140DL2001PTC111194

Company & Directors' Information:- B 2 B SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140HR2013PTC049213

Company & Directors' Information:- R K SERVICES PRIVATE LIMITED [Active] CIN = U45200HR2007PTC041783

Company & Directors' Information:- V MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U82320KA2004PTC035168

Company & Directors' Information:- A. R. T. SERVICES PRIVATE LIMITED [Active] CIN = U51900GJ2009PTC056248

Company & Directors' Information:- H AND S MANAGEMENT PRIVATE LIMITED [Active] CIN = U74140KL2005PTC018253

Company & Directors' Information:- B 9 N SERVICES PRIVATE LIMITED [Active] CIN = U74900KL2012PTC032087

Company & Directors' Information:- V J SERVICES PRIVATE LIMITED [Strike Off] CIN = U29242GJ2013PTC074510

Company & Directors' Information:- N I SERVICES PRIVATE LIMITED [Strike Off] CIN = U64202KL2000PTC014355

Company & Directors' Information:- NEW K K FINANCE PRIVATE LIMITED [Strike Off] CIN = U65921UP1974PTC003887

Company & Directors' Information:- M. J. S. FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U65921PB1971PTC003049

Company & Directors' Information:- G AND G MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140CH1996PTC018896

Company & Directors' Information:- F I SERVICES PRIVATE LIMITED [Strike Off] CIN = U74999DL2001PTC113001

Company & Directors' Information:- A R FINANCE PVT LTD [Strike Off] CIN = U65921PB1989PTC009778

Company & Directors' Information:- C R D SERVICES PVT LTD [Active] CIN = U72300AS1988PTC003097

Company & Directors' Information:- B I M SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140KA1974PTC002694

Company & Directors' Information:- K G FINANCE LIMITED [Strike Off] CIN = U65910TZ1982PLC001219

Company & Directors' Information:- T Q M SERVICES PVT. LTD. [Strike Off] CIN = U74140DL1999PTC101341

Company & Directors' Information:- S AND Z FINANCE PRIVATE LIMITED [Strike Off] CIN = U65923PN1997PTC106520

Company & Directors' Information:- H S N FINANCE PVT LTD [Strike Off] CIN = U67120PB1993PTC013900

Company & Directors' Information:- G N FINANCE PVT LTD [Strike Off] CIN = U65990MH1981PTC024294

Company & Directors' Information:- B AND M SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140MH1977PTC019880

Company & Directors' Information:- D AND A MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74110MH1995PTC090182

Company & Directors' Information:- P. A. MANAGEMENT SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140CH2007PTC030834

Company & Directors' Information:- M J B E-SERVICES PRIVATE LIMITED. [Strike Off] CIN = U72400DL2006PTC150832

Company & Directors' Information:- C S FINANCE PRIVATE LIMITED [Strike Off] CIN = U65910GJ1987PTC009799

Company & Directors' Information:- CORPORATION BANK LIMITED [Strike Off] CIN = U99999KA1972PLC001067

Company & Directors' Information:- SOUTH INDIA COMPANY LIMITED [Dissolved] CIN = U74900KL1952PLC001113

Company & Directors' Information:- K AND C BANK LIMITED [Dissolved] CIN = U65191KL1928PLC000529

Company & Directors' Information:- CORPORATION BANK LIMITED [Not available for efiling] CIN = U99999MH1936PTC002552

Company & Directors' Information:- L AND T (MANAGEMENT) LIMITED [Dissolved] CIN = U99999MH1946PTC004765

    W.P. No. 20196 of 2019

    Decided On, 21 April 2020

    At, High Court of for the State of Telangana

    By, THE HONOURABLE MR. JUSTICE M.S. RAMACHANDRA RAO & THE HONOURABLE MR. JUSTICE T. AMARNATH GOUD

    For the Petitioner: E. Madan Mohan Rao, Advocate. For the Respondents: R1 to R3, Sundari R. Pisupati, R4, None appeared, R5, B. Manoj Kumar, R6, Vedula Srinivas, Advocates.



Judgment Text


M.S. Ramachandra Rao, J.

1. The petitioner in this Writ Petition is the State Bank of India, rep by it’s DGM and Branch Head, Stressed asset Management Branch, Hyderabad.

2.In this Writ Petition, the petitioner has challenged the notice F.No.INV/DGCEI/HZU/ST/49/2016-17 dt.11.6.2019 issued by the Deputy Director, Directorate General of GST Intelligence, Hyderabad Zonal Unit (3rd respondent) issued under Sec.87 of the Finance Act,1994 as being contrary to the Recovery of Debts and Bankruptcy Act,1993 and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short ‘the SARFAESI Act, 2002’) and seeks to have it set aside.

3.The 1st respondent herein is the Union of India, Ministry of Finance rep.by it’s Secretary, Service Tax Wing, New Delhi; the 2nd respondent is the Director General of GST Intelligence, Hyderabad Zonal Unit; the 4th respondent is the Deputy commissioner of Income tax, circle 3 (1), Hyderabad; the 5th respondent is the Regional Provident Fund Commissioner- II & it’s Recovery Officer, Regional Office, Hyderabad.

4. The 6th respondent is M/s SEW Infrastructures Limited, Greenlands, Hyderabad, a Company incorporated under the Companies Act, 1956.

5.The petitioner Bank in it’s banking activity had sanctioned limits of Rs.820 Crores to the 6th respondent with working capital limits of Rs.198 crores ( Fund based) and Rs.622 Crores ( Non Fund based) and the limits were renewed during February,2016 along with consortium Banks.

6. The 6th respondent created a first charge by way of hypothecation of all it’s current assets and receivables as primary security and a mortgage over it’s immoveable properties as collateral security.

7. The loan accounts of the 6th respondent were classified as ‘Non Performing Assets’ as on 8.1.2016 as per the Reserve Bank of India norms. The petitioner then initiated proceedings under the SARFAESI Act, 2002 by issuing a demand notice under Sec.13 (2) of the said Act and also took possession of 6th respondent’s properties under Sec.13 (4) of the said Act on 19.2.2018. These had been challenged by the 6th respondent in other forums.

8. The petitioner also filed on 13.4.2018 OA No.223 of 2018 before the Debt Recovery Tribunal, Hyderabad invoking the Recovery of Debts and Bankruptcy Act, 1993 for recovery of Rs.280.68 Crores against the 6th respondent and it is pending.

9. In the meantime the 6th respondent received an Income Tax Refund Order for Rs.35,75,95,400/- on 20.5.2019 and it was credited into the TRA account of the 6th respondent in the petitioner Bank at petiitoner’s CCG Branch, Hyderabad.

10. According to the petitioner, this amount, being a receivable, is subject the charge created by 6th respondent in it’s favor, and is entitled to be adjusted by it towards repayment of dues owed to it by the 6th respondent.

11. However the 3rd respondent issued the impugned notice dt.11.6.2019 to the Petitioner Bank invoking Sec. 87 of the Finance Act,1994 stating that 6th respondent owes Rs.59,20,19,079/- towards dues of Service Tax; invoking Sec.87(b)(i) r/w Sec.73 (1B) of the Finance Act,1994 it demanded that the petitioner Bank pay forthwith the Income Tax refund amount to the credit of the Central Government (i.e the 1st respondent) by way of a demand draft drawn in favor of “SBI Treasury Branch, Hyderabad for service Tax payment”; and if the amount falls short of Rs.59,20,19,079/-, he directed the petitioner Bank to subsequently transfer any amount becoming due from the petitioner to 6th respondent or any other amount held by it for or on account of 6th respondent to the extent of the shortfall to be paid to the 1st respondent. The 3rd respondent also threatened to treat the petitioner as an ‘assessee in default’ otherwise.

12. A summons was also enclosed to the impugned notice under the repealed Central Excise Act,1944 r/w Sec.174(2) of the CGST Act,2017 asking the petitioner to appear before the 3rd respondent.

13. The Deputy General Manager of the petitioner appeared before the 3rd respondent and gave a statement contending that dues owed by 6th respondent to petitioner are more than Rs. 2000 Crores, that it is a secured debt, and the petitioner is entitled to adjust the Income Tax refund credited to 6th respondent’s account in petitioner’s CCG Branch, Hyderabad towards it’s dues pointing out it has got priority over claims of the respondents 1-3 under Sec.31-B of the Recovery of Debts and Bankruptcy Act,1993.

14. Petitioner also contends that there was a claim lodged by the 5th respondent with it under Sec.8 F of the Employees Provident Fund and Miscellaneous Provisions Act,1952 for the same amount and that it is not possible to pay it to the respondents 1-3.

15. Petitioner also contends that as per sec.88 of the Finance Act,1994, the service tax and government dues have no priority over the secured debts covered by the Recovery of Debts and Bankruptcy Act,1993 and the SARFAESI Act, 2002.

16. Petitioner further contends that it is not a party to the adjudication proceedings against the 6th respondent taken by the respondents 1-3 and the very issuance of the notice under sec.87 (b)(i) of the Finance Act,1994 is without jurisdiction and is arbitrary.

IA No. 1 of 2019

17. Petitioner had filed IA No. 1 of 2019 in the Writ Petition to suspend the impugned notice issued by the 3rd respondent on 11.6.2019.

18.On 17.9.2019, this court granted interim suspension of the impugned notice.

I.A.nos. 2 and 3 of 2019

19. I.A.no. 2 of 2019 is filed by the 6th respondent and I.A.No.3 of 2019 is filed by the respondents 1-3 to vacate the said order.

20.The 5th respondent filed a counter affidavit disputing the petitioners’ contentions.

The stand of the respondents 1-3

21. In the affidavit filed along with IA.No.3 of 2019, the respondents 1-3 contended that the 3rd respondent has the jurisdiction under sec.87 of the Finance Act,1994 to issue the impugned notice under rule 6A of the Service Tax Rules ,1994 [which states that “where an amount of service tax payable has been self-assessed under Sec.70(1) of the Act, but not paid, either in full or in part, the same shall be recoverable along with interest in the manner prescribed under Sec.87 of the Act.”].

22. It is contended that the 6th respondent had failed to pay the self – assessed service tax. It is also contended that Sec.174(2) of the CGST Act,2017 validates the action for recovery of the service tax under Sec.87 of the Finance Act,1994 due from the 6th respondent and in turn from the petitioner.

23. It is contended that the creation of first charge by 6th respondent by way of hypothecation of all it’s current assets and receivables as primary security was not brought to the notice of the 3rd respondent and that only in the pleadings taken by petitioner in the Writ Petition, this became known to respondents 1-3. However it is contended that petitioner has not stated under what provisions of which enactment a mere hypothecation of assets ( current or otherwise) by 6th respondent can prevent and/or nullify the proceedings initiated by the 3rd respondent.

24. The respondents 1-3 also claim that they have no knowledge that the loan account of 6th respondent with petitioner was classified as a ‘Non- Performing Asset’ on 8-1-2016 and that an OA was filed before the Debts Recovery tribunal by the petitioner against the 6th respondent. It is contended that the petitioner has not submitted any copy of the Recovery certificate under Sec.31-A(2) of the Recovery of Debts and Bankruptcy Act,1993 and in the absence of such a certificate, petitioner’s claim over the Income Tax refund amount is not justified.

25. It is contended that though petitioner approached the NCLT invoking Sec.7 of the Insolvency and Bankruptcy Code, 2016, the said petition has not been admitted by the said forum; that petitioner has not produced proof of taking possession of the assets of the 6th respondent under Sec. 13(4) of the SARFAESI Act, 2002; and that petitioner’s claim that it has a first charge or statutory lien on the Income tax refund amount is not a valid claim.

26. It is contended that the Finance act,1994 is still existing even after the commencement of the CGST Act, 2017, that it has not been repealed and under Sec.174(2) of the CGST Act r/w Sec.142(8) of the CGST Act , the action of the 3rd respondent is valid in law.

The stand of the 6th respondent

27. In the affidavit filed along with IA No.2 of 2019, the 6th respondent Company supported the stand of the respondents 1-3 and contended that petitioner cannot challenge the impugned notice.

28. While admitting that the 6th respondent had borrowed loans from the petitioner, it is stated that it is still a going concern, but is passing through a bad phase financially. It admitted that it has liability towards service tax and also was in default of provident fund contributions.

29. It claimed that it had made a claim under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 in so far as service tax arrears are concerned on 31.10.2019 under ARN NO.LD3110190000255; that in view of the amnesty scheme, the demand for service tax would get settled at 60% of the tax component and that the interest component would be totally waived of, subject to acceptance by the Determination Committee under the scheme.

30. It also stated that the PF arrears are to the tune of Rs.3,89,42,739/- and already a Garnishee notice was served by the 5th respondent on the bank account of the petitioner lying with the petitioner.

31. It is contended that the petitioner is only one of the Banks of the consortium and that there are other Bankers/lenders and the petitioner cannot claim the entire amount of the Income Tax refund given to the 6th respondent.

The stand of the 5th respondent

32. In it’s counter the 5th respondent stated that the 6th respondent is covered under the provisions of the Employees Provident Fund and Miscellaneous Provisions Act,1952; that 6th respondent did not remit Provident Fund Contributions from April, 2016 to September,2018; that the authorized Officer issued order under Sec.7-A and 14-B of the said Act determining the dues payable under the said Act; that Recovery officer received Recovery certificates for Rs.4,23,39,801/- against which only Rs.25,58,161/- was recovered leaving a balance of dues of Rs.3,97,83,640/-.

33. It is also stated that under Sec.8F(3) (X), a notice dt.27.8.2019 was also issued to the Branch Manager, State Bank of India, SAM Branch-2, Kacheguda, Hyderabad.

34. It is stated that it has initiated action under Sec.8B to 8G of the said Act and as part of such recovery actions prohibitory order has been issued under sec. 8F against the petitioner, who is the banker of the 6th respondent, which had committed default in payment of Provident Fund Contributions. Reliance is also placed on Sec. 11 of the said Act which deals with ‘priority of payment o contributions over other debts’. Reference is also placed to certain unreported decisions of various courts none of which are furnished to the Court.

35. It is contended that the 5th respondent has priority over the dues of the Banks or Government departments.

36.It prayed that a direction be given to the petitioner to make payment of the Income Tax refund amount to it.

The consideration by the Court

37. From the above narrated facts it is clear that the 6th respondent owed amounts to the petitioner for loans borrowed by it, Service Tax dues to respondents 1-3 and Provident Fund dues to the 5th respondent. The 6th respondent supports the claim of respondents 1-3.

38. The 6th respondent received an Income Tax refund Order for Rs.35,75,95,400/- on 20.5.2019 and it was credited into the TRA account of the 6th respondent in the petitioner Bank at it’s CCG Branch, Hyderabad.

39. The question is “which of the parties is entitled to take this amount?”

Whether the claim of petitioner prevails over the claim of the respondents 1-3?

40. In this regard, we shall first consider the rival claims of the petitioner Bank and the respondents 1-3.

41.Sec.87(b) (i) of the Finance Act,1994 states:

“87. Recovery of any amount due to Central Government.—Where any amount payable by a person to the credit of the Central Government under any of the provisions of this Chapter or of the rules made thereunder is not paid, the Central Excise Officer shall proceed to recover the amount by one or more of the modes mentioned below:—

(a) … the Central Excise Officer may deduct or may require any other Central Excise Officer or any officer of customs to deduct the amount so payable from any money owing to such person which may be under the control of the said Central Excise Officer or any officer of customs;

(b)(i) the Central Excise Officer may, by notice in writing, require any other person from whom money is due or may become due to such person, or who holds or may subsequently hold money for or on account of such person, to pay to the credit of the Central Government either forthwith upon the money becoming due or being held or at or within the time specified in the notice, not being before the money becomes due or is held, so much of the money as is sufficient to pay the amount due from such person or the whole of the money when it is equal to or less than that amount;

… …”

(emphasis supplied)

42.Sec. 88 of the Finance Act, 1994 states:

“88. Liability under Act to be first charge.—Notwithstanding anything to the contrary contained in any Central Act or State Act, any amount of 3[tax], penalty, interest, or any other sum payable by an assessee or any other person under this chapter, shall, save as otherwise provided in Section 529-A of the Companies Act, 1956 (1 of 1956) and the Recovery of Debts Due to Banks and the Financial Institutions Act, 1993 (51 of 1993) [the Securitisation and Reconstruction of Financial Assets and the Enforcement of Security Interest Act, 2002 and the Insolvency and Bankruptcy Code, 2016], be the first charge on the property of the assessee or the person as the case may be.”

(emphasis supplied)

43. Thus the claim of the service tax dues of 6th respondent of Rs.59,20,19,079/- made by the respondents 1-3 will be a first charge is subject to the provisions in the Recovery of Debts Due to Banks and the Financial Institutions Act, 1993 (51 of 1993) ( later renamed as recovery of debts and Bankruptcy Act,1993) and the Securitisation and Reconstruction of Financial Assets and the Enforcement of Security Interest Act, 2002 (SARFAESI Act,2002).

44. The Recovery of Debts Due to Banks and the Financial Institutions Act, 1993 was renamed as Recovery of Debts and Bankruptcy Act,1993 by Sec.249 of the Fifth Schedule of the Insolvency and Bankruptcy Code, 2016.

45. Sec.31-B of the Recovery of Debts and Bankruptcy Act,1993 inserted by Act 44 of 2016 w.e.f 1.9.2016, states:

“Sec.31-B. Priority to secured creditors.— Notwithstanding anything contained in any other law for the time being in force, the rights of secured creditors to realise secured debts due and payable to them by sale of assets over which security interest is created, shall have priority and shall be paid in priority over all other debts and Government dues including revenues, taxes, cesses and rates due to the Central Government, State Government or local authority.

Explanation.— For the purposes of this section, it is hereby clarified that on or after the commencement of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), in cases where insolvency or bankruptcy proceedings are pending in respect of secured assets of the borrower, priority to secured creditors in payment of debt shall be subject to the provisions of that Code.”

46. Sec.26-E of the SARFAESI Act,2002 introduced by Act 44 of 2016 w.e.f 1.9.2016 also contains an identical provision which states:

"26-E. Priority to secured creditors.- Notwithstanding anything contained in any other law for the time being in force, after the registration of security interest, the debts due to any secured creditor shall be paid in priority over all other debts and all revenues, taxes, cesses and other rates payable to the Central Government or State Government or local authority.

Explanation.- For the purposes of this section, it is hereby clarified that on or after the commencement of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), in cases where insolvency or bankruptcy proceedings are pending in respect of secured assets of the borrower, priority to secured creditors in payment of debt shall be subject to the provisions of that Code."

47. Thus both these provisions give priority to claims of secured creditors like the petitioner Bank over the dues of the State such as Service Tax dues/ Income Tax dues and the non-obstante clause therein overrides the provisions of the Finance Act, 1994.

48. Sec.35 of the SARFAESI Act, 2002 gives overriding effect to the said statute over anything inconsistent therewith in any other law. It states:

“Sec.35. The provisions of this Act to override other laws.—The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law.”

49. The Counsel for the respondents 1-3 Mrs.P.Sundari however placed reliance on the decision of the Supreme Court in Central Bank of India v. State of Kerala (2009) 4 SCC 94)wherein the Supreme Court held that claim of the State of Kerala under the Kerala State General Sales Tax Act, 1963 would prevail over the claims of a secured creditor like the Central Bank of India. In that case the Supreme Court held :

“110. The DRT Act facilitated establishment of two-tier system of tribunals. The tribunals established at the first level have been vested with the jurisdiction, powers and authority to summarily adjudicate the claims of banks and financial institutions in the matter of recovery of their dues without being bogged down by the technicalities of the Code of Civil Procedure. The Securitisation Act drastically changed the scenario inasmuch as it enabled banks, financial institutions and other secured creditors to recover their dues without intervention of the courts or tribunals. The Securitisation Act also made provision for registration and regulation of securitisation/reconstruction companies, securitisation of financial assets of banks and financial institutions and other related provisions.

111. However, what is most significant to be noted is that there is no provision in either of these enactments by which first charge has been created in favour of banks, financial institutions or secured creditors qua the property of the borrower.

112. Under Section 13(1) of the Securitisation Act, limited primacy has been given to the right of a secured creditor to enforce security interest vis-vis Section 69 or Section 69-A of the Transfer of Property Act. In terms of that sub-section, a secured creditor can enforce security interest without intervention of the court or tribunal and if the borrower has created any mortgage of the secured asset, the mortgagee or any person acting on his behalf cannot sell the mortgaged property or appoint a Receiver of the income of the mortgaged property or any part thereof in a manner which may defeat the right of the secured creditor to enforce security interest. This provision was enacted in the backdrop of Chapter VIII of the Narasimham Committee’s Second Report in which specific reference was made to the provisions relating to mortgages under the Transfer of Property Act.

113. In an apparent bid to overcome the likely difficulty faced by the secured creditor which may include a bank or a financial institution, Parliament incorporated the non obstante clause in Section 13 and gave primacy to the right of secured creditor vis--vis other mortgagees who could exercise rights under Sections 69 or 69-A of the Transfer of Property Act. However, this primacy has not been extended to other provisions like Section 38-C of the Bombay Act and Section 26-B of the Kerala Act by which first charge has been created in favour of the State over the property of the dealer or any person liable to pay the dues of sales tax, etc. Sub-section (7) of Section 13 which envisages application of the money received by the secured creditor by adopting any of the measures specified under sub-section (4) merely regulates distribution of money received by the secured creditor. It does not create first charge in favour of the secured creditor.



126. While enacting the DRT Act and the Securitisation Act, Parliament was aware of the law laid down by this Court wherein priority of the State dues was recognised. If Parliament intended to create first charge in favour of banks, financial institutions or other secured creditors on the property of the borrower, then it would have incorporated a provision like Section 529-A of the Companies Act or Section 11(2) of the EPF Act and ensured that notwithstanding series of judicial pronouncements, dues of banks, financial institutions and other secured creditors should have priority over the State’s statutory first charge in the matter of recovery of the dues of sales tax, etc. However, the fact of the matter is that no such provision has been incorporated in either of these enactments despite conferment of extraordinary power upon the secured creditors to take possession and dispose of the secured assets without the intervention of the court or Tribunal. The reason for this omission appears to be that the new legal regime envisages transfer of secured assets to private companies.”(emphasis supplied)

50. Thus the Supreme Court based it’s decision on the absence of a provision in the Recovery of Debts and Bankruptcy Act, 1993 and SARFAESI Act, 2002 giving priority to the secured creditors’ claims over the claims of the State like Sales Tax dues.

51.But when the decision in Central Bank of India ( 1 supra) was delivered on 27.2.2009, the provision of Sec.31-B of the Recovery of Debts and Bankruptcy Act, 1993 or Sec.26E of the SARFAESI Act,2002 were not in existence.

52. Sec.31-B of the Recovery of Debts and Bankruptcy Act, 1993 and Sec.26E of the SARFAESI Act, 2002 were introduced in the respective statutes only on 1.9.2016 by Act 44 of 2016.

53. So, in our opinion, after introduction of Sec.31-B of the Recovery of Debts and Bankruptcy Act, 1993 and Sec.26-E of the SARFAESI Act, 2002 w.e.f. 1.9.2016, the claim of the petitioner Bank would prevail over that of the respondents 1-3, and the decision in Central Bank of India (1 supra) cannot be relied on by the respondents 1-3.

54. But the following discussion in Central Bank of India (1 supra) about the interpretation of a non-obstante clause is relevant for our purposes.

55. The Supreme Court explained in Central Bank of India (1 supra):

“103. A non obstante clause is generally incorporated in a statute to give overriding effect to a particular section or the statute as a whole. While interpreting non obstante clause, the court is required to find out the extent to which the legislature intended to do so and the context in which the non obstante clause is used.”

56. The said non-obstante clause in both Sec.31-B of the Recovery of Debts and Bankruptcy Act, 1993 and Sec.26E of the SARFAESI Act, 2002 would override over the provisions of the Finance Act,1994 like Sec.87(b) (i).

57. The Gujarat High court in Bank of Baroda vs. State of Gujarat and Ors (MANU/GJ/1885/2019)has also taken an identical view and has held that the insertion of Section 31B of the Recovery of Debts and Bankruptcy Act, 1993 with the non-obstante clause contained therein, will give priority to the secured creditors even over the subsisting charges under other laws on the date of the implementation of the new provision, i.e. 1.9.2016.

58.We respectfully agree with the said view and hold that having regard to the clear language contained in Sec.31-B of the Recovery of Debts and Bankruptcy Act, 1993 giving priority to rights of secured creditors (to realise secured debts due and payable to them by sale of assets over which security interest is created) over all other debts and Government dues including revenues, taxes, cesses and rates due to the Central Government, State Government or local authority, the law has undergone a sea change; and in view of Sec.31-B of the Recovery of Debts and Bankruptcy Act, 1993 and sec.26E of the SARFAESI Act,2002 w.e.f.1.9.2016 the claims of secured creditors such as the petitioner Bank have priority over the claims of the respondents 1-3 for service tax dues.

59. So we reject the claim of the respondents 1-3 that they are entitled to the Income Tax refund amount credited to the 6th respondent’s Bank account with the petitioner Bank and that the petitioner cannot claim it.

Finding:

60. Consequently we hold that the impugned notice under Sec.87 of the Finance Act, 1994 issued by the 3rd respondent cannot be sustained in law.

Whether the 5th respondent’s claim prevails over the claim of the petitioner?

61. We have already noted that the claim of the 5th respondent for Provident Fund contributions and damages against the 6th respondent is based on Sec.11 of the Employees Provident Fund and Miscellaneous Provisions Act,1952. The said provision states:

“11. Priority of payment of contributions over other debts.—

(1) Where any employer is adjudicated insolvent or, being a company, an order for winding up is made, the amount due—

(a) from the employer in relation to an establishment to which any Scheme or the Insurance Scheme] applies in respect of any contribution payable to the Fund or, as the case may be, the Insurance Fund, damages recoverable under Section 14-B, accumulations required to be transferred under sub-section (2) of Section 15 or any charges payable by him under any other provision of this Act or of any provision of the Scheme or the Insurance Scheme; or

(b) from the employer in relation to an exempted establishment in respect of any contribution to the Provident Fund or any Insurance Fund (in so far as it relates to exempted employees), under the rules of the Provident Fund or any Insurance Fund any contribution payable by him towards the Pension Fund under sub-section (6) of Section 17, damages recoverable under Section 14-B or any charges payable by him to the appropriate Government under any provision of this Act or under any of the conditions specified under Section 17,

shall, where the liability therefor has accrued before the order of adjudication or winding up is made, be deemed to be included among the debts which under Section 49 of the Presidency Towns Insolvency Act, 1909, or under Section 61 of the Provincial Insolvency Act, 1920 or under Section 530 of the Companies Act, 1956, are to be paid in priority to all other debts in the distribution of the property of the insolvent or the assets of the company being wound up, as the case may be.

Explanation.—In this sub-section and in Section 17, ‘insurance fund’ means any fund established by an employer under any scheme for providing benefits in the nature of life insurance to employees, whether linked to their deposits in provident fund or not, without payment by the employees of any separate contribution or premium in that behalf.

(2) Without prejudice to the provisions of sub-section (1), if any amount is due from an employer , whether in respect of the employee’s contribution (deducted from the wages of the employee) or the employer’s contribution], the amount so due shall be deemed to be the first charge on the assets of the establishment, and shall, notwithstanding anything contained in any other law for the time being in force, be paid in priority to all other debts.”

(emphasis supplied)

62. While subsection (2) of Sec.11 of the said enactment contains a non-obstante clause creating a first charge to claims for Provident Fund dues over all other debts, we have already seen that there is also a non obstante clause in Sec.31-B of the Recovery of Debts and Bankruptcy Act, 1993 and Sec.26-E of the SARFAESI Act,2002.

63. The former statute is one of 1952 while the other two were enacted in 1993 and 2002 respectively.

64. It is settled law that if there is conflict between two special Acts and both contain non obstante clauses, the said clause in the later Act will prevail as held in Solidaire India Ltd. v. Fairgrowth Financial Services Ltd (2

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001) 3 SCC 71). 65.The Supreme Court Solidaire India Ltd (3 supra) had the occasion to consider the effect of conflict between two special Acts. In the case before the Supreme Court, the conflict was between the provisions of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 with the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985. The Supreme Court took the view that the later one would prevail. It held: “7. … … there is no doubt that the 1985 Act is a special Act. Section 32(1) of the said Act reads as follows: “32. Effect of the Act on other laws.—(1) The provisions of this Act and of any rules or schemes made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any other law except the provisions of the Foreign Exchange Regulation Act, 1973 (46 of 1973) and the Urban Land (Ceiling and Regulation) Act, 1976 (33 of 1976) for the time being in force or in the Memorandum or Articles of Association of an industrial company or in any other instrument having effect by virtue of any law other than this Act.” 8. The effect of this provision is that the said Act will have effect notwithstanding anything inconsistent therewith contained in any other law except to the provisions of the Foreign Exchange Regulation Act, 1973 and the Urban Land (Ceiling and Regulation) Act, 1976. A similar non obstante provision is contained in Section 13 of the Special Court Act which reads as follows: “13. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law, other than this Act, or in any decree or order of any court, tribunal or other authority.” 9. It is clear that both these Acts are special Acts. This Court has laid down in no uncertain terms that in such an event it is the later Act which must prevail. The decisions cited in the above context are as follows: Maharashtra Tubes Ltd. v. State Industrial & Investment Corpn. of Maharashtra Ltd.4; Sarwan Singh v. Kasturi Lal;5 Allahabad Bank v. Canara Bank6 and Ram Narain v. Simla Banking & Industrial Co. Ltd.7” (emphasis supplied) Finding: 66. In view of this settled legal position, even the 5th respondent’s claim for the Income Tax refund amount credited to the 6th respondent’s Bank account with the petitioner Bank cannot prevail over petitioner’s claim for the same by way of adjustment to it’s dues. 67. Therefore the Writ Petition is allowed; the notice F.No.INV/DGCEI/HZU/ST/49/201617 dt.11.6.2019 issued by the 3rd respondent is set aside; and it is held that the petitioner Bank is entitled to appropriate the sum of Rs. 35,75,95,400/- deposited towards Income Tax refund by the 4th respondent in the Bank account of the 6th respondent with the petitioner’s branch at CCG Branch at Hyderabad towards dues owed to petitioner by the 6th respondent. IA No. 2 and 3 of 2019 are dismissed. No costs. 68. As a sequel, miscellaneous petitions pending if any, in this Writ Petition, shall stand closed.
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