https://www.taxtmi.com/caselaws?id=112812 Municipal property tax arrears were treated as a statutory liability, not an encumbrance, because no express statutory charge was shown to attach to the property; the auction purchaser therefore was not bound to discharge pre-sale dues. The Court also held that, on liquidation, the municipality had to prove its claim before the official liquidator and seek payment through the statutory distribution of assets under the Companies Act, 1956. As an unsecured creditor, it could not bypass the winding-up process or recover the arrears directly from the purchaser. en-us Thu, 19 Feb 2009 00:00:00 +0530 Thu, 26 Nov 2015 16:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=112812 Municipal property tax arrears were treated as a statutory liability, not an encumbrance, because no express statutory charge was shown to attach to the property; the auction purchaser therefore was not bound to discharge pre-sale dues. The Court also held that, on liquidation, the municipality had to prove its claim before the official liquidator and seek payment through the statutory distribution of assets under the Companies Act, 1956. As an unsecured creditor, it could not bypass the winding-up process or recover the arrears directly from the purchaser. Case-Laws Companies Law Thu, 19 Feb 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=112812