STATE OF M.P. vs STATE BANK OF INDORE — C.A. No. 11528/1996

Case Summary: State of M.P. v. State Bank of Indore (C.A. 11528/1996) Outcome: The Supreme Court allowed the civil appeal on March 15, 2001, setting aside the High Court's judgment and order. The Court held that Section 33-C of the M.P. General Sales Tax Act, 1958 creates a statutory first charge on property for sales tax dues that prevails over pre-existing bank charges, regardless of when the bank charge was created. The Court also found the High Court erred in dismissing the appeal on technical grounds. Key Issue: Whether the State's claim to a first charge under Section 33-C on machinery (for unpaid sales tax) took priority over the State Bank of Indore's charge created in 1974 through loan agreements. No order as to costs. This case analysis is maintained by casestatus.in based on publicly available court records.