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TMI Blog2016 (7) TMI 1634X X X X Extracts X X X X X X X X Extracts X X X X ..... d. & Anr.). 3. Brief facts of the case are that respondent No.1 had filed a writ petition against the order dated 26/03/2007(Annexure- P/5) passed by respondent no.3, i.e., Assistant Commercial Tax Officer Cum Additional Tehsildar Circle-II, Indore thereby rejecting the objections against the proclamation for sale (Annexure-P/4) of the respondent No.1 factory premises situated at Plot No.101-F, Road No. II, Sector-I, Industrial Area, Pithampur, District - Dhar. 4. That one M/s. Sourabha Spinners Pvt. Ltd. Which was carrying on business of manufacturing of textile had obtained a loan from MPFC by mortgaging its factory land, building plant machinery situated at the factory premises. However, as the said factory was not regular in repayment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or by the Commercial tax Department of the State Government for recovery of the arrears of commercial tax from the erstwhile owners. 8. Shri Bhargava, learned Dy. AG for the appellants/State has drawn our attention to the agreement to sale dated 6/01/2007(Annexure-P/5) and submitted that auction purchaser shall be responsible for payment of all taxes, cesses etc. of the erstwhile owners and, therefore, they are liable to pay. 9. The only point for consideration in this appeal is whether a company, which purchased the property of another company under liquidation through auction, is liable to pay the arrears of commercial tax dues outstanding against the erstwhile company owners. 10. It is not in dispute that the respondent no.1 was the h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of arrears of commercial tax dues is not justified. 12. The facts, already noticed above, show that M.P. Financial Corporation had already mortgaged the property of the borrower-Company in its favour. After the said property stood mortgaged in favour of the M.P. Financial Corporation, the liability of the said Company towards the Commercial Tax could not be fastened upon the property of the said company in preference over the mortgage liability. As a matter of fact, the said property was not even available for creation of any charge by the Tax Department. 13. Clause 6 of the agreement dated 6/01/2007 is relevant which reads as under;- The party of the second part has satisfied itself as to the rights, title and interest of the party o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is clear that the High Court has chosen to construe Section 24 of the Electricity Act correctly. There is no charge over the property. Where that premises comes to be owned or occupied by the auction-purchaser, when such purchaser seeks supply of electric energy he cannot be called upon to clear the past arrears as a condition precedent to supply. What matters is the contract entered into by the erstwhile consumer with the Board. The Board cannot seek the enforcement of contractual liability against the third party. Ofcourse, the bonafides of the sale may not be relevant * * * 61...... It is impossible to impose on the purchasers a liability which was not incurred by them. 62. No doubt, from the tabulated statement above set out, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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