IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC WEDNESDAY, THE 12TH JANUARY 2011 / 22ND POUSHA 1932 WP(C).No. 33127 of 2010(M) -------------------------- PETITIONER(S): ---------------------- KEERAMPARA SERVICE CO-OPERATIVE BANK, NO E 214, REP.BY ITS SECRETARY, GEORGE K.C., AGED 44, S/O.CHACKO, KARAKOMBIL HOUSE, KOTHAMANGALAM.P.O., ERNAKULAM DISTRICT. BY ADV. SRI.G.SREEKUMAR (CHELUR) SRI.K.RAVI (PARIYARATH) RESPONDENT(S): ----------------------- 1. THE STATE OF KERALA, REP.BY THE SECRETARY TO THE GOVT.REVENUE DEPARTMENT, GOVT.SECRETARIAT, THIRUVANANTHAPURAM-695 001. 2. THE DISTRICT COLLECTOR, ERNAKULAM-682 030. 3. THE TAHSILDAR, KOTHAMANGALAM-682 309. 4. THE VILLAGE OFFICER, KUTTAMANGALAM-688 501. 5. T.P.VARGHESEKUTTY @ VARGHESE, S/O.THEKILAKATT PURATH, KONDIMATTOM KARAYIL, KUTTAMANGALAM VILLAGE, ERNAKULAM DISTRICT-688 501. GOVT.PLEADER SRI.P.N.SANTHOSH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12/01/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ANTONY DOMINIC, J. ================ W.P.(C) NO. 33127 OF 2010 ===================== Dated this the 12th day of January, 2011 J U D G M E N T Petitioner is a Co-operative Bank. In this writ petition, the prayer sought is to direct respondents 2 to 4 not to proceed against the property of the 5th respondent based on Ext.P8 or any other proceedings till the liability in favour of the petitioner under Exts.P1 to P4 is discharged. 2. Admittedly, the proceedings have been initiated by respondents 2 to 4 against the property of the 5th respondent for realisation of the sales tax liability and the property admittedly is mortgaged to the petitioner Bank. Having regard to the fact that Section 26B of the KGST Act created a statutory first charge in favour of sales tax liabilities, the mortgage charge created in favour of the petitioner cannot get preference over the sales tax liability. If that be so, petitioner cannot justifiably raise any objection if respondents 2 to 4 proceed against the mortgaged property for realisation of the sales tax dues. Writ petition is dismissed. ANTONY DOMINIC, JUDGE Rp