Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Vigneswaran (Lawyer)     28 August 2011

Recovery u/s 11 from the subsequent purchaser

Dear friends,

I have purchased a property through sarfasei auction of a bank to conduct business of export, when i apply to the central excise authorities for clearence, they claim arrears of excise which is due by the predecessor of the property under section 11 is it valid. since i have purchased through auction the bank is liable for any dues the burden cant be transferred to me ??



Learning

 2 Replies

pervez (adviser)     28 August 2011

Dear, under SARFAESI, the property is laways sold by secured creditor on 'As is where is and whatever there is" basis. As a prudent purchaser, you should have enquired from your own sources regarding statutory dues. The law is very clear on the subject that stautory dues have preference.. See the sale letter / deed.. If nothing is there, claim it from the secured creditor or from the defaulter / owner of the property... Finally, contest at appropriate court or file objections before concerned DRT, seeking directions against all parties concerned. 

Vigneswaran (Lawyer)     01 September 2011

Dear Pervez,

Thanks for your reply, there is a judgment of the madras high court and the supreme court that secured creditors would have the first charge whereass crown debts has to wait. Even the bank in the sale certificate issued to us has clearly stated that, there are no encumbrances attached to the property. and its not a practise for registration department to usually update tax dues.

The provisio to section 11 states that the movable properties of the successor would be attached would that include the movables procured by the successor after the purchase of the property?? 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register