Connectwell Industries Pvt. Ltd. vs The Union Of India Through Ministry Of Finance & Ors.

Whether a bona fide purchaser of property in a DRT auction sale, where a charge was created prior to issuance of notice under Rule 2 of Schedule II to the Income Tax Act, is entitled to have the property transferred despite subsequent attachment by the Income Tax Department --- Held Yes. Whether Crown debts have automatic precedence over prior secured debts --- Held No, unless statute provides preference.