Dena Bank vs Bhikhabhai Prabhudas Parekh & Co. & Ors

The Supreme Court held that the right of the State to recover sales tax arrears does not take precedence over the Bank's right to enforce its mortgage security under the Transfer of Property Act, 1882. The Court affirmed the High Court's finding that the Chief Manager of the Bank was duly authorized to file the suit. The Court also emphasized that the compromise between the Bank and the borrowers, which allowed for the sale of the mortgaged property, was valid despite the State not being a party to it. The appeal was allowed in favor of the Bank, ensuring its rights over the mortgaged property were upheld.