Law:

Section:

(a) Bengal Municipal Act (XV of 1932), Ss. 167 & 525-Sale, under S. 525, for arrears of Municipal tax-Purchaser at such sale does not purchase property free from all encumbrances-Charge mentioned in S. 167-Not such charge as defined in S. 100, Transfer of Property Act, 1882-Transfer of Property Act (IV of 1882), S. 100. It is true that under section 167 of the Bengal Municipal Act, 1932 the dues for municipal tax would be a first charge subject to the prior payment of the land revenue, if any, due to the Government or of rent due to the landlord under the Bengal Tenancy Act. There is no provision in the Bengal Municipal Act, however, that a purchaser in a sale held under the said Act for the realisation of municipal tax purchases the property free from all encumbrances. The charge mentioned in section 167 of the Bengal Municipal Act is not such a charge as is defined in section 100 of the Transfer of Property Act. Under the Bengal Municipal Act a purchaser at a sale under section 525 of the Act does not acquire the property free from all encumbrances. If there is a valid mortgage subsisting at the time of the sale the purchaser purchases the property subject to that mortgage and the right of the mortgagee to put the property to sale for the realisation of his dues cannot be questioned. Corporation of Calcutta v. Kumar A run Chandra Singha and others 38 C W N 917 ref. (b) Transfer of Property Act (IV of 1882), S. 73-Object : to protect mortgagee whose security diminished-Mortgagee can, for ; recovery of his dues, follow mortgaged property and is not neces­sarily confined to surplus of sale proceeds in sale of mortgaged property for arrears of revenue or other public charges. The object of section 73 is only to protect a mortgagee whose security has been diminished. The section does not lay down , that if a mortgaged property is sold owing to failure to pay arrears of revenue or other charges of a public nature or rent due in respect of such property the only remedy of a mortgagee is to claim payment of his money out of any surplus of sale proceeds remaining after payment of the arrears and of all charges and deductions directed by law. The section only…

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