M/S Rana Girders Ltd vs Union Of India & Ors

The Supreme Court ruled that under Section 29 of the State Financial Corporation Act, the purchaser of mortgaged property at a public auction is not liable for the borrower's statutory dues, such as excise duty, unless explicitly stated in the sale conditions. The Court held that the appellant, having purchased the property free from encumbrances, cannot be held responsible for the borrower's excise liabilities. The appeal was allowed, affirming the appellant's position as the rightful owner without additional financial obligations to the excise department.