Bona fide purchaser protection prevails where no encumbrance or notice existed before a later tax attachment.

A Madras HC decision is discussed on whether a later attachment for a vendor's family member's tax arrears can bind an earlier purchaser of immovable property. The court applied the principle of bona fide purchase and constructive notice, noting that the buyer purchased for value after an encumbrance certificate showed no attachment and there was no material of actual or constructive notice of the revenue proceedings. On those facts, the later attachment was treated as unenforceable against the purchaser, and the property was directed to be released from the encumbrance.

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Issues: Whether an attachment over immovable property for tax arrears of the vendor's family member can be sustained against a purchaser who bought the property earlier after obtaining an encumbrance certificate and without actual or constructive notice of the arrears.

Analysis: The petitioner purchased the property for valuable consideration after obtaining an encumbrance certificate showing no attachment. The attachment was created only later, and there was no material to show that the petitioner had actual knowledge of the revenue proceedings or that circumstances existed giving rise to constructive notice. A bona fide purchaser is protected where no notice of the charge is shown, and the principle of constructive notice under property law was applied to the facts. The cited precedent on protection of bona fide purchasers in similar attachment proceedings was treated as governing the case.

Conclusion: The attachment could not be enforced against the petitioner and was held to be illegal and liable to be quashed. The petitioner succeeded.

Final Conclusion: The property was directed to be released from the encumbrance, and the writ petition was allowed.

Ratio Decidendi: A purchaser who acquires immovable property for value after an encumbrance search discloses no charge, and who has no actual or constructive notice of prior tax proceedings, takes the property free from the later attachment.

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