Distraint order against previous owner's tax dues are filed as an encumbrance on my present property
PEER MOHAMED
(Querist) 15 June 2014
This query is : Resolved
Dear Sirs,
Good day!
I need your expertise / valuable advice on vacating the Encumbrance filed on 10.03.2008 by the Sales Tax Department as per the Distraint Order(form 1, under sec 8)of the CTO dtd 07.03.2008 against the recovery of Sales Tax Dues from the previous owner of the property, which mortgaged property was taken possession by the bank on 11.03.2004 & on 23.01.2007 itself under sec. 13(4) of SARFAESI Act 2002 and was sold by 'Tender cum Auction Sale' to one 'X' by the bank on 31.01.2008, on 'as is where is' & 'as it what is' basis a 'Sale Certificate' dated 22.02.2008, which property was further sold by 'X' to me on 05.12.2012, when we noticed the Encumbrance on the property.
T. Kalaiselvan, Advocate 
(Expert) 17 June 2014
since you have not bought the property directly under auction, you may not know the pending encumbrances on the property, it was the duty of x, the vendor who sold the property to you, to settle the previous liabilities that existed on the property because it was he who had bought the property through an auction sale on the basis of as is where is condition. Therefore, better approach the x to clear the dues or issue him a legal notice followed by legal action against him, consult a local lawyer and proceed further as per his advise.
