TMI Blog2000 (7) TMI 980X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2. Subsequently, the petitioner received a communication dated 26.5.99 from the 3rd respondent informing that the proprietor, M/s. Maxima Electronics was in arrears of sales tax to the tune of ₹ 1,80,814 for the assessment year 1994-95 to 1998-99. Immediately the petitioner approached the third respondent. The 3rd respondent informed the petitioner that the properties purchased by the petitioner were attached, and the same was notified in the District Gazette, dated 22.1.99, fixing the date of auction of the said properties. Immediately, the petitioner addressed a letter dated 28.6.99 to the first respondent, informing that the above said facts regarding arrears of sales tax were not informed to the petitioner and so he requested ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory liabilities in respect of the properties advertised for sale. This stand has been taken on the basis of clause 16 of the terms and conditions. It is also stated that it is the duty of the petitioner to verify the dues payable on the properties on the principle of Caveat emptor . On that basis it is prayed to dismiss the writ petition. 5. From the above pleadings, it is clear that the petitioner's bid was confirmed on 26.4.99 by the respondents 1 and 2. Before such confirmation, the respondents 1 and 2 knew about the arrears of sales tax payable by M/s. Maxima Electronics, and the properties which are sought to be sold by the respondent 1 and 2 had been attached by the Sales Tax Department invoking the provisions of Tamil Nadu G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis he cannot come forward with the plea that he will not pay the full amount of sale consideration. The learned counsel has also relied on the decision in Thakarlal v. Smt. Rama, . 9. In this case, admittedly, the petitioner is the successful bidder and his bid has been confirmed. It is not the case of the petitioner that the respondents 1 and 2 have no right to sell the properties. Now it is alleged by the petitioner that he cannot pay the entire amount, in view of the fact that the Sales Tax Department has attached the properties so as to enable them to recover the sales tax arrears. The respondents 1 and 2 relying on clause 16 have come forward with the plea that having agreed for the terms and conditions of the sale, the petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property is as specified. No publicity is given to the declaration contained in the execution application. Publicity is only given to the sale proclamation which is issued by the Court, It is this proclamation which invites bidders to come and bid for the property at the auction sale. Whatever representation is made to the auction purchaser is contained in the sale proclamation. This representation is not made on behalf of the decree-holder. It is made by the Court on its behalf. It is in Form No.29, Appendix E, Schedule I, C.P.C. The following condition of sale is specifically mentioned in this proclamation: The particulars specified in the Schedule below have been stated to be the best of the information of the Court, but the Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebtor has good title and he purchases the property with his eyes open and regulates the price which he bides for the property with reference to the circumstances under which he is purchasing and the risk he runs. There seems to be no reason why the decree-holder who is bona fide trying to realize his decree by executing it should be penalized in order to safeguard the interest of the auction purchaser. In case the decree-holder is ordered to refund the money to the auction purchaser, he shall have no right to further execution or his decree which has once been satisfied in full. As was pointed out in the Allahabad Full Bench case, AIR 1988 All 593, if the decree-holder perpetrates a fraud on the auction purchaser then certainly the latte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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