State financial corporation sale passes machinery free of customs charge, and customs authorities cannot block removal after transfer.

Property sold by a State Financial Corporation under section 29 of the State Financial Corporations Act vests in the transferee with all the transferor's rights, and the sale does not carry any customs charge unless such a charge is created by law over the property itself. The Customs Act provisions on warehousing, control of warehoused goods, and duty liability did not create a continuing lien or statutory charge over the machinery after sale. Because section 46B gives the State Financial Corporations Act overriding effect where inconsistent with other laws, customs authorities could not restrain the auction purchaser from removing the machinery on the basis of unpaid customs duty due from the borrower.

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Issues: Whether property sold by the State Financial Corporation under section 29 of the State Financial Corporations Act, 1951, could be treated as subject to a customs charge so as to prevent the auction purchaser from removing the machinery.

Analysis: Section 29(2) provides that a transfer made by the financial corporation vests in the transferee all rights in the property as if the transfer had been made by the owner. The Customs Act provisions dealing with warehousing, control over warehoused goods, and liability for duty were examined, but they did not create any statutory charge over the machinery itself. The non obstante clause in section 46B gives overriding effect to the State Financial Corporations Act where there is inconsistency with other laws. On that basis, the customs authorities could not assert a continuing lien or charge over the sold assets merely because customs duty remained due from the loanee.

Conclusion: The auction purchaser was entitled to remove the machinery, and the customs authorities had no right to restrain its removal on the basis of an alleged customs charge.

Ratio Decidendi: Property transferred by a financial corporation in exercise of section 29 rights passes to the transferee free from any charge not created by law over the property itself, and an overriding non obstante clause excludes inconsistent claims under another enactment.

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