Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Companies Act 1956 - ss. 529 529A and 530 - |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Companies Act, 1956 - ss. 529, 529A and 530 - Sale of assets of company in liquidation - Claim of arrears of property . tax by Municipality from purchaser for period prior to date of purchase - High Court holding that tax payable to Municipality C was encumbrance and it could not avoid payment for not making enquiry - Held: Not sustainable - Municipality was unsecured creditor and not preferential creditor - Dues in relation to municipal tax does not create any encumbrance or charge on property - It is considered to be a personal liability Fact that company went in liquidation was given due publicity - Municipality did not file its claim before official liquidator noi stood in queue to get the same recovered/adjusted from sale proceeds - More so, advertisement did not specify that all public charges have to be paid - Transfer of Property Act, E 1882- s. 55. Words and phrases: 'Encumbrance' - Meaning of.A company went in liquidation. Appellant purchased the assets of the company. The company judge confirmed F the sale. Thereafter, respondent-Municipality served a notice to appellant claiming payment of arrears of property tax. Appellant took out chambers summons for clarification that sale confirmed in their favour would make them liable for payment of property tax only on and from G the date of confirmation of sale and not for any period prior thereto. Both the Single Judge as ·also the Division Bench of the High Court held that since the inventory was made on "as is where is and whatever there is" basis, the offerer was to satisfy themselves in regard to the physical inspection of the assets/properties as to the title, encumbrance etc. of the assets of the company in liquidation. Hence the present appeal. |
Judge | Hon'ble Mr. Justice S.B. Sinha |
Neutral Citation | 2009 INSC 220 |
Petitioner | Al Champdany Industries Limited |
Respondent | The Official Liquidator & Anr. |
SCR | [2009] 2 S.C.R. 705 |
Judgement Date | 2009-02-19 |
Case Number | 1118 |
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