- (1.) Challenge in CWP No.13068 of 2014 is to an order passed by respondent No.1 Additional District Magistrate, Mohali on 08.05.2014 (Annexure P-1) holding that the dues of Income Tax Department, being crown debt, shall get priority over other debts in the matter of recovery relying upon the judgment of Hon'ble Supreme Court in Dena Bank Vs. Bhikhan Bhai Pradhudas Parekh & Co. & others, 247 ITR 167.
(2.) The borrower M/s Ashiana Inn Limited has also filed an application under Section 340 of the Code of Criminal Procedure (for short 'the Code') for initiating criminal proceedings against the officials of the Punjab & Sind Bank in preparing and pursuing CWP No.13068 of 2014 having committed perjury.
(3.) The brief facts leading to the present set of petitions are that the petitioner in CWP No.13068 of 2014, a Public Sector Bank, advanced loan/credit limit to respondent No.2 against the security/mortgage of secured assets. The total due amount as on 31.01.2013 was said to be Rs.26,59,02,097.64. The petitioner initiated proceedings under the Securitization & Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002 (for short 'the SARFAESI Act'). It is also alleged that the borrower is politically well connected and has been threatening the Bank officials though Section 32 of the SARFAESI Act bars any proceedings in respect of anything done or omitted to be done in good faith under the said Act. Before taking physical possession, the petitioner-Bank approached the District Magistrate, Mohali on 14.05.2013, however, the District Magistrate, Mohali kept the matter pending for a long period. Ultimately, on 08.05.2014, the District Magistrate declined the claim of the petitioner, inter alia, on the ground that there is an order of status quo regarding possession of the disputed property by the Civil Court and that in terms of Section 14 of the SARFAESI Act, the District Magistrate is not empowered to decide the question of legality and propriety of any action taken by the secured creditor though in terms of Section 13(4) of the SARFAESI Act, the District Magistrate is bound to assist the secured creditors. The order (Annexure P-1) addressed to the Tehsildar, Derabassi, on an application filed by the petitioner, refers to an order passed by the Civil Judge (Junior Division), Derabassi, whereby the parties were directed to maintain status quo and also a notice from the Income Tax Department to the effect that the property in question stands attached for recovery of a sum of Rs.1,62,92,047/- as dues of income tax from the year 2000-01 to 2004-05. It was thus held that the property attached by the Income Tax Department, cannot be attached for the recovery of the dues of the Bank.;