Statutory charge cannot bind a bona fide purchaser without notice unless the governing statute expressly overrides transfer protection.

A statutory charge under the Tamil Nadu General Sales Tax Act could not be enforced against a bona fide purchaser for value without notice, because Section 100 of the Transfer of Property Act protects a transferee unless the statute expressly overrides that protection. The record showed no actual or constructive notice of the charge, the encumbrance certificate disclosed no encumbrance, and there was no evidence of collusion. Section 24-A was held not to contain any express provision authorising enforcement against a transferee without notice. The impugned notice was therefore unsustainable, the writ petition succeeded, and the department was left free to proceed against the dealer according to law.

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Issues: Whether the sales tax department could enforce a statutory charge over the property in the hands of a bona fide purchaser for value without notice under Section 24 and Section 24-A of the Tamil Nadu General Sales Tax Act, 1959, read with Section 100 of the Transfer of Property Act, 1882.

Analysis: A charge does not transfer an interest in property and, under Section 100 of the Transfer of Property Act, 1882, it is enforceable against a transferee only if the transferee had notice of the prior charge, unless the relevant statute expressly authorises enforcement against a transferee without notice. The record showed that the purchaser had no actual or constructive notice of the charge, the encumbrance certificate reflected no encumbrance, and there was no actionable evidence of collusion. Section 24-A of the Tamil Nadu General Sales Tax Act, 1959 was held not to contain any express provision overriding the protection given to a transferee without notice.

Conclusion: The charge could not be enforced against the purchaser, and the impugned notice was unsustainable.

Final Conclusion: The writ petition succeeded, the demand notice was quashed, and the department was left free to proceed against the dealer in accordance with law.

Ratio Decidendi: A statutory charge cannot be enforced against a transferee for value without notice unless the governing statute expressly permits such enforcement notwithstanding the transferee's lack of notice.

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