https://www.taxtmi.com/caselaws?id=206752 A tax recovery sale of leasehold property passes only the defaulter's existing right, title and interest, so contractual covenants attached to the lease, including payment of unearned increase on transfer, continue to bind the transaction. The court held that the recovery process could not convey a better title than the defaulter held, and the auction purchaser could not ignore the lessor's entitlement under the perpetual sub-lease. The locus standi objection also did not survive after impleadment of the relevant persons. The demand for unearned increase was therefore upheld for completion of transfer, while the quantification dispute was left open. en-us Tue, 16 Aug 2011 00:00:00 +0530 Tue, 15 Nov 2011 07:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=206752 A tax recovery sale of leasehold property passes only the defaulter's existing right, title and interest, so contractual covenants attached to the lease, including payment of unearned increase on transfer, continue to bind the transaction. The court held that the recovery process could not convey a better title than the defaulter held, and the auction purchaser could not ignore the lessor's entitlement under the perpetual sub-lease. The locus standi objection also did not survive after impleadment of the relevant persons. The demand for unearned increase was therefore upheld for completion of transfer, while the quantification dispute was left open. Case-Laws Income Tax Tue, 16 Aug 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=206752