TMI Blog2016 (9) TMI 560X X X X Extracts X X X X X X X X Extracts X X X X ..... effected. Such demand would obviously be covered, as we have noted above, in the conditions of sale quoted above. In the premises, there is no merit in the challenge to the demand of the unearned incremental charges from the Petitioners. The Petitioners' contention that the demand must be honoured by the Appropriate Authority, is without any substance. - Writ Petition No. 2868 of 1991 - - - Dated:- 1-9-2016 - M. S. Sanklecha And S. C. Gupte, JJ. Mr. D.V. Deokar, Advocate and Ms. Jaylaxmi C. Gaud, i/b. M/s. Parimal K. Shroff Co., for the Petitioners Ms. Jyoti Chavan, AGP Mr. Abhay Ahuja, a/w. Mr. Ranit Basu, for the Respondent JUDGMENT ( Per S.C. Gupte, J. ) This petition is filed under Article 226 of the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingly, acquired by the Appropriate Authority and, thereafter, put up for a public auction. In pursuance of the public auction, the Petitioners, as highest bidders in the auction sale, were declared the purchasers of the property. The Petitioners paid the purchase price to the Appropriate Authority and were put in possession of the property. Subsequent to this purchase, whilst the matter of execution of the conveyance was pending, the Collector of Mumbai raised a demand for ₹ 3,42,000/as unearned incremental charges payable to the Collector in accordance with the terms of the original lease consequent upon the transfer of the property. This demand was made on the Petitioners. The Petitioners, in turn, called upon the Appropriate Author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f an unredeemed mortgage and every such assignee, underlessee or transfer or shall use the said plot only for the purpose of which it has been let out under the terms hereto. It is the case of the Appropriate Authority that the property was auctioned by the Income Tax Department on as is where is basis and any liability accruing subsequent to the sale or any liability coming to the notice of the transferee after the sale and not in the knowledge of the department at the time of the sale is the liability of the auction purchaser. 5. The answer to the question as to whether payment of unearned incremental charges demanded by the Collector of Mumbai is the responsibility of the Appropriate Authority as the assignor of the leasehold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not known at the time of the auction, the responsibility to honour such demand is clearly that of the auction purchaser. The clause unequivocally requires the purchaser to pay all outstandings pertaining to the property. Any order of the Government of Maharashtra under any relevant law or regulation in respect of the subject property must be honoured by the auction purchaser. Such order would include any demand made by the State Government as headlessor and enforceable under the Maharashtra Land Revenue Code. 6. Learned Counsel for the Petitioners relies on Clause 10 of the lease deed quoted above and contends that the obligation to obtain a prior permission or consent in writing of the Collector of Bombay or Additional Collector, as th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e honoured by the Appropriate Authority, is without any substance. 9. Rule is, accordingly, discharged and the petition dismissed. 10. In pursuance of the interim order passed by this Court on 14 October 1991, the State (Respondent Nos. 3 and 4) was directed to give permission for assignment of lease in favour of the Petitioners on the Petitioners' furnishing a bond to Respondent No.3 to pay the sum of ₹ 3,42,400/if called upon to do so, as a result of the outcome of this petition. In pursuance of these directions, the Respondents gave their permission and the assignment of lease has been, accordingly, executed in favour of the Petitioners on 27 December 1991. Now that the petition is dismissed, the Petitioners shall pay the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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