STATE OF KARNATAKA & ANR.. vs SHREYAS PAPERS PVT. LTD. .

The Supreme Court ruled that a purchaser of assets under Section 29 of the State Financial Corporations Act, 1951 is not liable for the seller's sales tax arrears if the sale agreement explicitly states 'zero liabilities'. The Court held that the charge on property becomes unenforceable against a transferee when the transferee is not made aware of such charges at the time of purchase. The Court also determined that a novel relief not claimed before the High Court cannot be introduced at the Supreme Court level.