Aftab Alam JUDGMENT
G.S. Singhvi, J.
1. Leave granted in S.L.P. (C) No. 24767 of 2005.
2. Whether Section 38C of the Bombay Sales Tax Act, 1959 [for short "the Bombay Act"] and Section 26B of the Kerala General Sales Tax Act, 1963 [for short "the Kerala Act"] and similar provision contained in other State legislations by which first charge has been created on the property of the dealer or such other person, who is liable to pay sales tax etc., are inconsistent with the provisions contained in the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (for short `the DRT Act') for recovery of `debt' and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short `the Securitisation Act') for enforcement of `security interest' and whether by virtue of non obstante clauses contained in Section 34(1) of the DRT Act and Section 35 of the Securitisation Act, two Central legislations will have primacy over State legislations are the questions which arise for determination in these appeals.
3. For the sake of convenience, we have taken notice of the facts of civil Appeal Nos. 95/2005 and 2811/2006 and the reasons contained in the orders passed by Kerala and Bombay High Courts, which are under challenge in these appeals.
4. C.A. No. 95/2005 - Central Bank of India v. State of Kerala and Ors. MANU/SC/0306/2009 : (2009)4SCC94 - Central Bank of India, which is a nationalized bank, gave cash/ credit facility to the tune of Rs. 12 lakhs to Kerala Refineries (P) Ltd. The borrower executed mortgage of movable and immovable properties for securing repayment. As the borrower failed to repay the dues, the bank filed civil suit bearing O.S. No. 234/1996 in the Court of Sub-Judge at Mavelikara. Later on the suit was transferred to Ernakulam Bench of the Debts Recovery Tribunal (hereinafter referred to as "the Tribunal"). By an order dated 1.12.2000, the Tribunal decreed the suit for an amount of Rs. 55 lakhs with future interest. As a sequel to this, Recovery Certificate dated 1.11.2001 was issued in favour of the bank and the Recovery Officer issued notice for sale of the movable and immovable properties of the borrower. At that stage, Tehsildar, Mavelikara issued notice dated 26.11.2001 to the borrower for recovery of Rs. 40,38,481/- as arrears of sales tax stating therein that its moveable and immovable properties had been attached on 2.2.2000 and 4.9.2000 and that steps are being taken to sell the attached property by public auction. The Tehsildar claimed that by virtue of Section 26B of the Kerala Act, as amended by Act No. 23/1999, the