- (1.) The judgment and order under challenge was passed by a Division Bench of the High court of Madhya Pradesh at Indore. It dismissed the First Appeal filed by the present appellant, the State of Madhya Pradesh.
(2.) The second respondent had obtained from the first respondent-Bank a term loan of rupees forty thousand on 5/09/1974. In this behalf, the second respondent had executed a promissory note and had pledged to the Bank certain machinery. A second loan was taken on 23/01/1979 and a third loan on 25/01/1979.
(3.) In the meantime, with effect from 19/01/1976, Section 33-C was Inserted into the M. P. General Sales Tax Act, 1958. It read thus; "Tax to be first charge - Notwithstanding anything to the contrary contained in any law for the time being in force, any amount of tax and/or penalty, if any, payable by a dealer or other person under this Act shall be a first charge on the property of the dealer of such person. ";