Distinction between Attachment of Property and Charge over Property
Case: Shree Radhekrushna Ginning and Pressing Pvt. Ltd. Through Director Yash Pareshbhai Khachar Versus State Of Gujarat
Coram: Justice JB Pardiwala
Case No.: C/SCA/5413/2022
Court Observation: “Attachment creates no charge or lien upon the attached property. It merely prevents and avoids private alienations; it does not confer any title on the attaching creditors”
“A charge on the other hand under Section 48 of the GVAT Act creates no interest in or over a specific immovable property, but is only a security for the payment of money”
“A charge, as we have already seen, is a right to receive a certain sum of money. If a dealer registered under the GVAT Act incurs any liability towards payment of tax, then the State has a right to receive a certain sum of money as crystallized in the form of liability.”
We would like to clarify that what has been done by the Talati- cum-Mantri does not amount to attachment of the property. There is no attachment. We reiterate that there is a fine distinction between attachment of property and a charge over the property by operation of law”
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