Judgment

Srikrishna, J.—There are three questions of law to be decided in these appeals:

2. Firstly, whether the purchaser of assets of a concern sold by a State Financial Corporation, in exercise of its powers under Section 29 of the State Financial Corporations Act, 1951 (hereinafter "the SFC Act"), would be liable under the Karnataka Sales Tax, 1957 (hereinafter "the KST Act"), for the arrears of sales tax of the concern whose assets have been transferred?

3. Secondly, under what circumstances does a charge created on a property become unenforceable against a transferee of such a property?

4. Finally, whether a completely novel relief, not argued/claimed before the High Court or decided by the impugned judgment, may be claimed before this Court?

The Facts in Civil Appeal 3170/2000

5. A company by name Mishal Paper Mills (P) Ltd. (hereinafter "the Defaulting Company"), was running a medium-scale duplex board manufacturing unit. The Second Respondent, Karnataka State Industrial Investment & Development Corporation Ltd. (hereinafter "the Corporation"), had extended financial assistance to the Defaulting Company. However, the Defaulting Company defaulted in repayment of the loans granted