1. The Petitioners, who are the purchases of the property in the auction conducted by the Third Respondent under the provisions of SARFAESI Act, have approached this Court challenging the auction notice dated 24.4.2009 issued by the First Respondent for recovery of arrears of commercial tax, which are payable by M/s. Pioneer Cashew Limited to which the property originally belonged to.

2. The case of the Petitioners is that the Third Respondent advertised for tender-cum-auction for sale of the property of one M/s. Pioneer Cashew Limited under Section 13(4) of the SARFAESI Act, 2002. The said property is land and building bearing No.300 Poonamallee High Road, Maduravoyal, Chennai – 600 095. The said auction was conducted by the Third Respondent for recovery of loan availed by M/s. Pioneer Cashew Industries Limited. The Petitioners were successful bidder and the sale was concluded in their favour by way of Sale Certificate dated 19.5.2008 and subsequently physical possession was also given.

3. When things stand so, the Petitioners received a communication dated 29.09.2008 issued under Section 36 of the TNGST Act from the First Respondent stating that for arrears of sale tax