AI CHAMPDAY INDUSTRIES LTD. vs OFFICIAL LIQUIDATOR

The Supreme Court ruled that the purchaser of assets in liquidation is liable for property tax arrears prior to the date of sale, as per the terms 'as is where is basis' in the sale agreement. The Court held that the purchaser must investigate any encumbrances, including tax liabilities, before the purchase. The appeal was dismissed, affirming the lower court's decision that the municipality could claim the tax dues from the purchaser, referencing Sections 529 and 529A of the Companies Act, 1956.