Liquidation sale on an as-is basis does not shift pre-auction dues to the purchaser after statutory distribution.

A liquidation purchaser who buys assets on an "as is where is" basis is not burdened with pre-auction dues once the creditor's claim has already been lodged with the liquidator and the sale proceeds have been distributed under the insolvency waterfall. The sale had been completed by full payment, issuance of the sale certificate and delivery of possession, and the realised amount was insufficient even for secured creditors. In that setting, fastening stale pre-sale liabilities on the purchaser would defeat the object of liquidation and the statutory distribution scheme. The challenge to transfer the property in the purchaser's name therefore failed, and the purchaser was not liable for the pre-auction dues.

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Issues: Whether a successful bidder purchasing assets in liquidation on an "as is where is" basis is liable to pay pre-auction dues attached to the property when the claim had already been lodged before the liquidator and distribution had been undertaken under the liquidation waterfall.

Analysis: The claim for outstanding dues had been lodged with the liquidator during the liquidation process as an operational creditor claim. The liquidation sale was completed after payment of the full consideration, issuance of the sale certificate, and handing over of possession. The proceeds were insufficient to satisfy even the secured creditors, and the liquidator had already distributed the sale proceeds in accordance with the statutory waterfall under the insolvency framework. In these circumstances, the attempt to fasten pre-sale dues on the auction purchaser was inconsistent with the object of liquidation and the principle that a purchaser should not be burdened with stale claims after completion of the sale.

Conclusion: The auction purchaser was not liable for the pre-auction dues, and the challenge to the order directing transfer of the property in the purchaser's name failed.

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