Sales Tax Tribunal order against Shikshak Sahkari Bank

Sales Tax Tribunal order against Shikshak Sahkari Bank (SSB)

CAN Sales Tax Department recover Rs 92 lakh old dues from the bank which obtained possession of the hotel for non-payment Of its loan and whether the hank can file appeal challenging such assessment? The Sales Tax Tribunal rejected appeal filed by Shikshak Sahkari Bank (SSB) holding (hat it had no locus since it was not an aggrieved person, but the Nagpur bench of Bombay High Court found this order unjustified and unsustainable and remanded back the matter to first authority holding that Bank had every right to contest the matter. Shikshak Sahkari Bank which is locked in a bitter legal battle with owners of Kamakshi Hotels Private Limited located on Amravati Road, got a rude shock when they received a notice to shell out Rs 92.27 lakh 00 February 5, 2011. According to Bank, it had extended loan of Rs 2 crore to Kamakshi Hotels for opening a family resort against hypothecation by creating registered mortgage of land, building etc in its favour.
The loan could not be repaid and in view of defaults. Bank resorted to recovery under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. 2002. It took symbolic possession   of   the    property    on

Posted in: News 2014