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2022 (5) TMI 84 - HC - Insolvency and BankruptcyRecovery of property tax dues from the Liquidator - period prior to 26.02.2021 - priority of charges over subject property As observed by the Supreme Court in the case of AI CHAMPDANY INDUSTRIES LTD. VERSUS OFFICIAL LIQUIDATOR [2009 (2) TMI 470 - SUPREME COURT], if the property tax was merely a statutory dues without creating any encumbrance on the property, then it is not obligatory on the part of the auction purchasers to make an investigation as regards the title etc. It would mean that auction purchasers need not find out all the liabilities of the company in liquidation in their entirety. In the present case, there are no fault with the Official Liquidator in putting the subject property to E-auction. Also there are no fault with the writ applicant in participating in the auction proceedings. It is not in dispute that the writ applicant was the successful bidder. In RUKMANI VERSUS THE DEPUTY COMMERCIAL TAX OFFICER I, [2013 (3) TMI 205 - MADRAS HIGH COURT], the Madras High Court held that, as the proviso to Section 24-A of the T.N.G.S.T. Act itself indicated, a charge may not be enforced against a transferee if he/she has had no notice of the same unless, by law, the requirement of such notice had been waived. The Surat Municipal Corporation cannot claim any first charge or precedence over the subject property by virtue of Section 141 of the BPMC Act. The auction proceedings have attained finality. The writ applicant as on date is the lawful owner of the subject property. The Surat Municipal Corporation may recover the property tax from the writ applicant from the date of purchase of the subject property in the E-auction proceedings. If the entries as regards the sale in the revenue record of rights have not been mutated, the revenue authority shall proceed to do so in favour of the writ applicant. Application disposed off.
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