In a recent judgment, the Calcutta High Court dismissed a writ petition filed by auction purchasers challenging demands for pre-purchase property tax arrears and upheld the property tax liability of auction purchaser despite of Insolvency Bankruptcy Code (IBC), 2016.
It was observed that the statutory charge under Section 232 KMC Act overrides the IBC’s general priority mechanism.
The petitioners, Cotton Casuals India Ltd acquired four leasehold factory units and six car parking spaces at Paridhan Garment Park, Kolkata, through an e-auction conducted under the IBC liquidation process of M/s Enfield Apparels Ltd. Possession was handed over on 19.01.2022, and deeds of assignment were executed on 07.05.2022. When seeking mutation of the…