https://www.taxtmi.com/caselaws?id=293744 In a SARFAESI auction, known encumbrances, including pre-sale municipal tax dues that constitute a first charge on the property, must be disclosed in the sale notice and sale certificate. The statutory auction framework under Rules 8 and 9 places the duty of clear disclosure on the secured creditor, so an undisclosed burden cannot be shifted to the auction purchaser after sale and delivery of possession. Where the purchaser pays the municipal dues to clear title, reimbursement may be claimed from the secured creditor because Rule 9 payment mechanisms apply only to disclosed encumbrances. The governing principle is caveat venditor, not caveat emptor. en-us Tue, 03 Sep 2019 00:00:00 +0530 Sat, 27 Feb 2021 11:03:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=293744 In a SARFAESI auction, known encumbrances, including pre-sale municipal tax dues that constitute a first charge on the property, must be disclosed in the sale notice and sale certificate. The statutory auction framework under Rules 8 and 9 places the duty of clear disclosure on the secured creditor, so an undisclosed burden cannot be shifted to the auction purchaser after sale and delivery of possession. Where the purchaser pays the municipal dues to clear title, reimbursement may be claimed from the secured creditor because Rule 9 payment mechanisms apply only to disclosed encumbrances. The governing principle is caveat venditor, not caveat emptor. Case-Laws Indian Laws Tue, 03 Sep 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=293744