Revenue charge on liquidated property cannot survive sale free from encumbrances under the Insolvency and Bankruptcy Code.

Property sold by a liquidator under the Insolvency and Bankruptcy Code, 2016 free from encumbrances cannot remain burdened by a pre-existing revenue charge when the State tax claim has already been admitted in liquidation and must be dealt with under the Code's priority scheme. The continuing attachment and 7/12 revenue entries therefore had no operative effect against the auction purchaser, and the writ court found no bar to granting relief despite the availability of an appellate remedy. The impugned charge and attachment entries were directed to be removed from the revenue record.

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Issues: Whether revenue entries creating a charge on property sold by a liquidator in insolvency could survive after the sale was confirmed as free from encumbrances, and whether such entries could be quashed in writ jurisdiction despite the existence of a statutory appellate remedy.

Analysis: The property had been sold during liquidation under the Insolvency and Bankruptcy Code, 2016 on an "as is where is" basis, but the sale documents and sale certificate stated that the assets were transferred free from all encumbrances. The claims of the State tax authorities had already been admitted in the liquidation process, so the dues were required to be dealt with in accordance with the statutory priority under the Code. Once the liquidator had admitted the claim and sold the property free from encumbrances, the continuing revenue charge in the 7/12 extract had no operative effect against the auction purchaser. The Court also found no impediment to writ relief in the facts of the case.

Conclusion: The revenue entries and charge could not be sustained against the auction-purchased property, and the challenge to those entries succeeded.

Final Conclusion: The writ petition was allowed, and the impugned attachment and charge entries were directed to be removed from the revenue record.

Ratio Decidendi: Property sold by a liquidator under the Insolvency and Bankruptcy Code, 2016 free from encumbrances cannot remain subject to a pre-existing revenue charge where the statutory dues have been admitted in liquidation and must be dealt with under the Code's priority scheme.

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