Private transfer and certificate dues: section 8 charge survives sale by Financial Corporation, enabling recovery against the property.

A notice under section 7 of the Bihar and Orissa Public Demands Recovery Act had already been served before the property was transferred, so section 8 operated to void any private transfer against claims enforceable in execution of the certificate and to create a charge on the property for the dues. The Financial Corporation's sale under its statutory powers was still a transfer for consideration and did not escape section 8. The indemnity clause in the sale deed could not bind the certificate-holder, who was not a party to the conveyance. Section 46B of the State Financial Corporations Act, 1951 did not override section 8 because no inconsistency was shown, so recovery could proceed against the property in the purchaser's hands.

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Issues: Whether the sale by the State Financial Corporation to the petitioner was a private transfer hit by section 8 of the Bihar and Orissa Public Demands Recovery Act, and whether the certificate dues could be enforced against the property notwithstanding the sale deed, the indemnity clause, and section 46B of the State Financial Corporations Act, 1951.

Analysis: Notice under section 7 of the Bihar and Orissa Public Demands Recovery Act had already been served before the successive transfers. Section 8 renders any private transfer of immovable property void against claims enforceable in execution of the certificate and creates a charge on the property for the certificate dues. The sale by the Financial Corporation was held to be a sale by a statutory right exercised under section 29 of the State Financial Corporations Act, 1951 and section 69 of the Transfer of Property Act, 1882, but it was nevertheless a transfer of property for consideration and not a sale immune from the operation of section 8. The indemnity clause in the sale deed could not bind the certificate-holder, who was not a party to the conveyance. Section 46B of the State Financial Corporations Act, 1951 did not displace section 8 of the Bihar and Orissa Public Demands Recovery Act, since no inconsistency between the two provisions was shown.

Conclusion: The transfer was a private sale for purposes of section 8, the certificate dues remained a charge on the property in the petitioner's hands, and the recovery proceedings against that property were valid.

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