Attachment of Pre Offence Mortgaged Property remains possible under PMLA; secured creditors may pursue statutory claim and seek auction with undertaki...
The note addresses whether a confirmed tax-sale transfers title when an insolvency moratorium later commences. It explains that under the Second Schedule and attendant rules, confirmation of a tax sale vests absolute title in the auction purchaser once purchase money is deposited; issuance of the sale certificate is a ministerial formality and merely evidences the date of vesting. Accordingly, a moratorium on proceedings under insolvency law cannot retrospectively nullify a sale that had already become absolute at confirmation. The practical effect is that confirmed sales completed before CIRP commencement remain effective and cannot be set aside by the moratorium.
The note addresses whether a confirmed tax-sale transfers title when an insolvency moratorium later commences. It explains that under the Second Schedule and attendant rules, confirmation of a tax sale vests absolute title in the auction purchaser once purchase money is deposited; issuance of the sale certificate is a ministerial formality and merely evidences the date of vesting. Accordingly, a moratorium on proceedings under insolvency law cannot retrospectively nullify a sale that had already become absolute at confirmation. The practical effect is that confirmed sales completed before CIRP commencement remain effective and cannot be set aside by the moratorium.
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