Indian Kanoon - Search engine for Indian Law

17. Ahmedabad Municipal Corporation was a case where a person was in arrears of property tax, due under the Bombay Provincial Municipal Corporation Act, 1949. Consequently, the Municipal Corporation created a charge over the property of the defaulter. However, the property was sold in execution of a mortgage decree. When the Municipal Corporation purported to exercise their charge over the property, the purchaser in court auction filed a suit for a declaration that he was the owner of the property and that the arrears of municipal taxes due by the transferor were not recoverable from him by proceeding against the property purchased in auction. In the appeal before this Court, the Municipal Corporation's main argument was that where the local law provided for the creation of a charge against a property for which municipal taxes were due, transferees of such properties were imputed with constructive knowledge of any charge created against the properties that they had purchased.

Hence, we cannot hold that the first appellant had constructive notice of the charge."

36) we are of the opinion that in the light of the uncontroverted factual material before us, Mr. Joshi can equally place reliance on these paragraphs in the Hon'ble Supreme Court Judgment.

We do not see how the Petitioners can be attributed any knowledge of the charge actual or constructive, as is now urged before us by Mr.Dhond.