along with the business. But, on the contrary to the same, when the properties alone are sold, without taking over or continuing the business, the right to recover the liabilities of the business is restricted. In sale of the property without ongoing business of later type, it is only the land, building, plant and machinery or whatsoever are sold, without venturing into the business activity of the defaulter or erstwhile establishment or company or factory. The purchase is only with respect to the properties and not that of the business. The purchaser may use the property or commence his business in the same nature or of a different nature. For example, the purchaser may modify the industry and start a new business of the same nature or he may use the property for some other new business or in other cases, he may sell away the plant and machinery and use the land and building for an entirely different purpose. For example, the buildings can be converted into School or Marriage Hall or Commercial Complex etc. In yet other cases, the land alone may be sold and the building may be put to his personal use or on the reverse, the land and building may be sold only using the plant and machineries at a different place. In cases of major industries, those properties can be used for starting a new division of the same or different business. Therefore, in all these cases, there is no relationship between the auction purchaser and the previous owner of the property or his business or the transaction personal to him. The transaction of the previous owner and his liability over the business are not binding on the third party purchaser. In other words, the business of the erstwhile owner of the industry, if not transferred, the liabilities will be personal to him. The licensee can start a new business with the same license after clearing the dues at a different property. Therefore, purchase of the property in an auction will not be binding on the third party purchaser.
