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TMI Blog2019 (4) TMI 1636X X X X Extracts X X X X X X X X Extracts X X X X ..... ses for consideration is whether the charge under Section 24(1) of the TNGST Act can be enforced against the property in the hands of the Petitioners. This issue is no longer res integra and it was decided that such a charge cannot be enforced against a transferee without notice . The principles of law that can be gleaned in respect of the enforcement of charges, including statutory charges - petition allowed. - W.P.No.42171 of 2006 - - - Dated:- 2-4-2019 - Mr. Justice Senthilkumar Ramamoorthy For the Petitioners : Mr.T.Jothi For the Respondent : Ms.G.Dhana Madhri Government Advocate (Taxes) ORDER This Writ Petition is filed to quash the Notice dated 15.09.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Impugned Notice dated 15.09.2006. 3.The Petitioners submitted a copy of the three Sale Deeds each dated 09.08.2000 and a copy of an Encumbrance Certificate(E.C) dated 13.03.2000. The E.C. is for the period from 01.01.1979 to 29.02.2000 and the only encumbrance reflected therein is the Sale Deed dated 12.04.1989 executed by the Tamil Nadu Small Industries Development Corporation(SIDCO) in favour of Industrial Lamination. The Petitioners have also filed a copy of an Indemnity Bond dated 26.04.2000 executed by the vendors indemnifying them in respect of any dues including statutory dues relating to the said property. 4.At the hearing, the learned counsel for the Petitioners submitted that the Petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... either actual or constructive, about the statutory charge in favour of the Sales Tax Department. 8.The Hon'ble Supreme Court in AHMEDABAD MUNICIPAL CORPORATION OF THE CITY OF AHMEDABAD Vs. HAJI ABDUL GAFUR HAJI HUSSENBHAI in AIR 1971 SC 1201 held that, as per Section 100 of the Transfer of Property Act,1882, a charge cannot be enforced against a transferee without notice unless the statutory provision in question expressly permits the enforcement of the charge in spite of not putting the transferee on notice. Accordingly, the limited issue that arises for consideration is whether the charge under Section 24(1) of the TNGST Act can be enforced against the property in the hands of the Petitioners. This issue is no longer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iii)If the relevant statute provides that the charge can be enforced against the property in the hands of a transferee without notice, it can be enforced notwithstanding the fact that the transferee is a bona fide purchaser for value without notice of the prior charge. (iv)Section 24 A of the TNGST Act does not stipulate that the charge can be enforced against the property in the hands of a transferee without notice of the prior charge. 9.In view of the foregoing discussion and analysis, this Writ Petition is liable to be allowed and the Impugned Notice is liable to be quashed. 10.In the result, this Writ Petition is allowed and the Impugned Notice dated 15.09.2006 is quashed. There shall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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