M/S RANA GIRDERS LTD. vs UNION OF INDIA .

The Supreme Court ruled that under Section 29 of the State Financial Corporation Act, the purchaser of assets in a public auction is not liable for the borrower's statutory dues, including excise duty, unless explicitly stated in the auction terms. The Court held that the auction terms did not impose such liability on the appellant, M/s. Rana Girders Ltd., who acquired the property free from encumbrances. Consequently, the demand for excise duty from the appellant was rejected, affirming the principle that auction purchasers are not responsible for the seller's debts unless agreed otherwise.