# In the matter of Punjab & Sind Bank vs. The State of Punjab & Anr.

> SC judgment dated 2023-12-07. Citation: TCN-2023-SC-00002. The Punjab & Sind Bank appealed a judgment by the Punjab & Haryana High Court from April 24, 2015,…

- **Court:** SC
- **Order date:** 7 Dec 2023
- **Citation:** TCN-2023-SC-00002
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/punjab-sind-bank-vs-the-state-of-punjab-anr-a57543fc

## Summary

### Background

The Punjab & Sind Bank appealed a judgment by the Punjab & Haryana High Court from April 24, 2015, which sustained the State's claim of priority regarding dues under the Punjab Value Added Tax Act, 2005 (the '2005 Act'), concerning a corporate entity, M/S Sumit Engineering Pvt. Ltd. The bank's claim was based on a charge created over the immovable property of the entity, which was respondent no. 2 in the appeal. The respondent was unrepresented during the appeal.

## Facts

The Punjab & Sind Bank initiated proceedings under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) on September 6, 2013, because respondent no. 2 defaulted on a borrowed amount of approximately Rupees 2.60 crores plus interest. The State claimed a first charge over the property based on dues under the Punjab Value Added Tax Act, 2005, amounting to Rupees 4.50 crores. The Assistant Collector-cum-Excise and Taxation Officer informed the Bank on May 23, 2014, about proceedings against respondent no. 2 under the Land Revenue Act, 1887, for recovering tax dues and the attachment of the defaulting respondent's property. The bank argued for primacy over the assets of the defaulting

…

## Issues and analysis

### Issue 1: Whether the State's claim for tax dues under the Punjab Value Added Tax Act, 2005, has priority …

**Ratio:** Section 35 of the Punjab Value Added Tax Act, 2005, stipulates that any amount of tax,

…

**Reasoning:** The court reasoned that the overriding provision of the 2002 Act does not eclipse the

…

**Interpretation:** The court interpreted Section 35 of the Punjab Value Added Tax Act, 2005, as

…

**Application:** The court applied the ratio to the facts of the case, holding that the State's

…

## Parties

- **Judges:** ANIRUDDHA…; Sudhanshu…; +1 more
- **Appellants:** PUNJAB AND SIND…; Punjab & Si…
- **Respondents:** M/S Sumit…; THE STATE OF…

## Timeline

- **2013-09-06 — Initiation of Proceedings under Section 13(2)…**: Proceedings initiated by Punjab & Sind Bank against respondent no. 2 due to default in…
- **2014-05-23 — Communication from…**: Assistant Collector-cum-Excise and Taxation Officer informed the Bank of initiation of…

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/supreme-court-of-india/punjab-sind-bank-vs-the-state-of-punjab-anr-a57543fc