SYNDICATE BANK Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) HEARD Sri Radhesh Prabhu, learned Counsel appearing for the petitioner and Ms. Niloufer akbar, learned Government Pleader appearing on behalf of the respondents.

(2.) PETITIONER is a nationalised Bank functioning on commercial lines. A person who had borrowed funds from the petitioner-bank and who was also a dealer and an assessee under the provisions of the Karnataka Sales Tax Act, 1957, and the Central Sales Tax Act, 1956, had for the purpose of securing repayment of the amounts borrowed by him from the petitioner-bank had it appears mortgaged one of his property in favour of the petitioner-Bank.

(3.) THE borrower of the funds from the petitioner-bank having defaulted in repayment of the amount, petitioner-bank had filed a suit for recovery of the amount and for enforcement of the security. The said suit was decreed and for the satisfaction of the decree the property that had been mortgaged in favour of the petitioner-Bank was sold through court auction. It is significant to note that by this time the said borrower was also a defaulter under the provisions of the karnataka Sales Tax Act and the Central Sales Tax Act and amounts were outstanding in favour of the respondent-Commercial Tax Department and as such the respondent had also been impleaded as a party defendant to the suit.