Bona fide purchaser protection under tax charge law bars recovery against property absent notice or fraud.

A transferee for adequate consideration is protected by the proviso to section 24-A of the Tamil Nadu General Sales Tax Act, 1959 where there is no actual or constructive notice of the vendor's tax liability. The statutory charge and voidness rule apply against transfers intended to defeat revenue, but they do not defeat a bona fide purchase made without collusion, mala fides, wilful abstention from enquiry, or gross negligence. Applying notice principles under the Transfer of Property Act, 1882, the court found no material to fasten the vendor's arrears on the purchaser and set aside recovery against the property.

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Issues: Whether the appellant, as a bona fide purchaser for value without actual or constructive notice of the tax charge, was protected under the proviso to section 24-A of the Tamil Nadu General Sales Tax Act, 1959 from recovery proceedings against the purchased property.

Analysis: The property had been purchased after the vendor's business had closed, and the encumbrance certificate did not disclose any charge. The statutory charge under section 24 of the Tamil Nadu General Sales Tax Act, 1959 and the voidness provision in section 24-A operate against transfers made with intent to defraud revenue, but the proviso preserves transfers for adequate consideration made without notice of the pending proceedings or tax liability. On the facts, there was no material to show collusion, mala fides, willful abstention from enquiry, or gross negligence on the part of the purchaser. In the absence of actual or constructive notice, and applying the principles governing notice under the Transfer of Property Act, 1882, the purchaser could not be fastened with the vendor's tax arrears.

Conclusion: The appellant was held to be a bona fide purchaser protected by the proviso to section 24-A, and the recovery proceedings against the property were set aside.

Final Conclusion: The tax recovery action could not be enforced against the transferee's property, and the writ appeal and writ petition succeeded.

Ratio Decidendi: A transferee for adequate consideration who acquires property without actual or constructive notice of a statutory tax charge is protected by the proviso to section 24-A of the Tamil Nadu General Sales Tax Act, 1959, and the revenue cannot proceed against such property for the transferor's arrears absent proof of fraud or notice.

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