Taxes after purchase in sarfasi

Guest (Querist) 13 December 2011 This query is : Resolved
sir i have purchased a property in sarfasiact

from nationlised bank .now if the previous owner have some incometax or sale tax dues ,
what the law suggest? after sale deed with bank can any department can come to me for previous owner's IT/ST dues?

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ajay sethi (Expert) 13 December 2011
As per the terms of the sale of assets through SARFAESI Act "All payments due to any person whatsoever and payment of all statutory dues, including but not restricted to property taxes, sales taxes, customs and central excise dues, cess, transfer charges and other dues/levies etc., if any, shall be ascertained and borne by the successful bidder

please scrutinise the terms and condions of sale entered into by you .

ajay sethi (Expert) 13 December 2011
judgment of the Supreme Court in AI Champdany Industries Limited v. The Official Liquidator and Anr reported in 2009 (3) CTC 881 for the purpose of contending that the purchaser is under no legal duty to enquire with regard to liabilities of the company and in respect of such company even if Municipal tax arrears to be paid, in respect of the property sold in auction it did not constitute charge on such property. Therefore, the company has no liability to pay its past dues. If there was any statutory duty without creating any encumbrance on the property, the purchasers have no obligation to enter into such liabilities. If once the property is sold, the assets of the company are required to be distributed to the creditors in the order of preference but such liability do not extend to the purchaser as if he was a successor in interest.

DEFENSE ADVOCATE.-firmaction@g (Expert) 13 December 2011
ST AND IT have over riding powers and no civil courts have control over them.Even if wrong you have to move HC , so take inventry of all liabilities and put your bid.

Raj Kumar Makkad (Expert) 13 December 2011
I do agree with the detailed advice of the experts.

prabhakar singh (Expert) 14 December 2011
I too agree with the detailed advice of the experts.

RAJU O.F., (Expert) 14 December 2011
SARFAESI Act is silent about the issue in question. The bank had to disclose the information possibly available with them. You may try your luck by filing appeal before DRT u/S 17, since you are now aggrieved party.