The case involves a writ petition filed by City Union Bank Limited seeking to quash an attachment order by the Income Tax Department on a property mortgaged to the bank by M/s. Vasan Medical Centre (India) Private Limited. The bank contends that it has priority over the Income Tax Department due to the mortgage predating the attachment. The Income Tax Department argues that assessment proceedings were pending when the mortgage was executed, rendering it void under Section 281 of the Income Tax Act. The petitioner bank is seeking the removal of the attachment to facilitate the sale of the mortgaged property through public auction.
M/s. City Union Bank Limited (the petitioner) extended credit facilities to M/s. Vasan Medical Centre (India) Private Limited (3rd respondent). The Director of Vasan Medical Centre mortgaged properties to the bank, including a 33.43 cents vacant land at Chinthamani Village Salai, Trichy, via a memorandum of deposit of title deeds on 2009-04-02 and an extended equitable mortgage on 2009-04-17. The Director, who acted as a guarantor, passed away on 2020-11-16, with his legal heirs arrayed as respondents 4 to 7. Vasan Medical Centre defaulted on the loans, leading to the accounts being classified as non-performing assets on 2015-10-24. The bank initiated SARFAESI proceedings to recover the outstanding amount. Upon approaching the Registration Department, the bank
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M/s. Vasan Medical Centre (India) Private…
Extended equ…
The case involves a writ petition filed by City Union Bank Limited seeking to quash an attachment order by the Income Tax Department on a property mortgaged to the bank by M/s. Vasan Medical Centre (India) Private Limited. The bank contends that it has priority over the Income Tax Department due to the mortgage predating the attachment. The Income Tax Department argues that assessment proceedings were pending when the mortgage was executed, rendering it void under Section 281 of the Income Tax Act. The petitioner bank is seeking the removal of the attachment to facilitate the sale of the mortgaged property through public auction.
M/s. City Union Bank Limited (the petitioner) extended credit facilities to M/s. Vasan Medical Centre (India) Private Limited (3rd respondent). The Director of Vasan Medical Centre mortgaged properties to the bank, including a 33.43 cents vacant land at Chinthamani Village Salai, Trichy, via a memorandum of deposit of title deeds on 2009-04-02 and an extended equitable mortgage on 2009-04-17. The Director, who acted as a guarantor, passed away on 2020-11-16, with his legal heirs arrayed as respondents 4 to 7. Vasan Medical Centre defaulted on the loans, leading to the accounts being classified as non-performing assets on 2015-10-24. The bank initiated SARFAESI proceedings to recover the outstanding amount. Upon approaching the Registration Department, the bank
…M/s. Vasan Medical Centre (India) Private…
Extended equ…