Court auction purchaser takes subject to prior charge; Section 100 protection for transferee without notice does not apply.

A court auction purchaser was held not to fall within the protection of a transferee for consideration without notice under Section 100 of the Transfer of Property Act, 1882. The court treated a sale in execution as a transfer by operation of law, not an ordinary transfer under Section 5, so the purchaser acquired only the judgment-debtor's right, title and interest. As a result, the purchaser took the property subject to the same charges and equities binding the judgment-debtor, and the prior charge remained enforceable against the auction purchaser. The appeal therefore failed.

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Issues: Whether a purchaser at a court auction sale takes the property free from a prior charge, and whether the protection for a transferee for consideration without notice under Section 100 of the Transfer of Property Act, 1882 applies to such an auction purchaser.

Analysis: Section 100, as amended, protects a transferee for consideration without notice, but the protection was held not to extend to a court auction sale. A court sale was treated as a transfer by operation of law, outside the ordinary concept of transfer in Section 5, and the auction purchaser was regarded as acquiring only the judgment-debtor's right, title and interest. On that footing, the purchaser took subject to the same charges and equities that bound the judgment-debtor. The attempt to rely on the mortgage position also did not assist, because the statutory protection contemplated a person in whose hands the property could be said to be transferred for consideration and without notice.

Conclusion: The prior charge was enforceable against the auction purchaser, and the appeal failed.

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