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If I am successful bidder / purchaser of an auctioned property under above Acts done for secured creditors, will encumbrance of government dues shall be passed on to me? I am told ‘yes’ under Sarfasaei and DRT acts and ‘no’ under IBC Act. Please confirm.
Question
If I am successful bidder / purchaser of an auctioned property under above Acts done for secured creditors, will encumbrance of government dues shall be passed on to me? I am told ‘yes’ under Sarfasaei and DRT acts and ‘no’ under IBC Act. Please confirm.
Answer ( 1 )
If you are a successful bidder of an auctioned property, the dues whatever is on the property which is creating an encumbrance is recovered from the sale. therefore one the sale certificate is issued and the dues are paid in full, the terms and conditions of the sale certificate will govern your situation. if the sale terms and conditions states regarding government dues to be paid by auction purchaser then the same may be condition precedent in confirming the sale. so you are advised to go through the terms before purchasing the auctioned property having lot of government’s due to be cleared.