https://www.taxtmi.com/caselaws?id=303863 Pre-sale municipal property tax arrears could not be enforced against an auction purchaser of a company in liquidation because no statute expressly created an encumbrance or first charge on the property. "Encumbrance" was construed as a subsisting burden or lien running with the asset, and general sale terms requiring inspection of title could not enlarge liability for statutory dues. The municipality, as an unsecured creditor, had to assert its claim in the winding-up proceedings and recover, if at all, from the sale proceeds under the statutory liquidation scheme. Section 55(1)(g) of the Transfer of Property Act did not convert such arrears into a charge against a bona fide purchaser. en-us Thu, 19 Feb 2009 00:00:00 +0530 Tue, 20 Dec 2022 14:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=303863 Pre-sale municipal property tax arrears could not be enforced against an auction purchaser of a company in liquidation because no statute expressly created an encumbrance or first charge on the property. "Encumbrance" was construed as a subsisting burden or lien running with the asset, and general sale terms requiring inspection of title could not enlarge liability for statutory dues. The municipality, as an unsecured creditor, had to assert its claim in the winding-up proceedings and recover, if at all, from the sale proceeds under the statutory liquidation scheme. Section 55(1)(g) of the Transfer of Property Act did not convert such arrears into a charge against a bona fide purchaser. Case-Laws Indian Laws Thu, 19 Feb 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=303863