Andhra Pradesh High Court - Amravati
Canara Bank vs The State Of Andhra Pradesh on 21 October, 2024
Author: R Raghunandan Rao
Bench: R Raghunandan Rao
APHC010438972024
IN THE HIGH COURT OF ANDHRA PRADESH
AT AMARAVATI [3488]
(Special Original Jurisdiction)
MONDAY, THE TWENTY FIRST DAY OF OCTOBER
TWO THOUSAND AND TWENTY FOUR
PRESENT
THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO
THE HONOURABLE SRI JUSTICE HARINATH.N
WRIT PETITION NO: 22827/2024
Between:
Canara Bank ...PETITIONER
AND
The State Of Andhra Pradesh and Others ...RESPONDENT(S)
Counsel for the Petitioner:
1. T B L MURTHY
Counsel for the Respondent(S):
1. GP FOR COMMERCIAL TAX
2. GP FOR REGISTRATION AND STAMPS
The Court made the following order: (per Hon'ble Sri Justice R Raghunandan Rao)
The petitioner herein is a public sector scheduled bank, which had sold
the property belonging to the 4th respondent, under the Securitization and
Reconstruction of Financial Assets and Enforcement of Security Interest Act,
2002 (herein referred to as "SARFAESI Act"), for recovery of its dues. It is
stated that the entire sale amount has already been received by the petitioner
and the sale certificate, dated 02.01.2024, was also issued in favour of the
RRR, J & HN, J
successful auction purchaser. However, the said sale certificate was not being
registered by the 3rd respondent on the ground that, the 2nd respondent had
requested the 3rd respondent not to accept any documents of alienation in
relation to the property which has been sold.
2. Aggrieved by the said refusal, of the 3rd respondent, to register
the said sale certificate, dated 02.01.2024, the petitioner has approached this
Court by way of the present Writ Petition.
3. The Learned Government Pleader for Commercial Tax, on
instructions, submits that the 4th respondent is due for a huge amount of taxes
to the Commercial Tax Department and the 2nd respondent, to safeguard the
State revenue, had requested the 3rd respondent not to register any deed of
alienation in relation to the subject property.
4. A similar issue had arisen before this Court in W.P.No.5335 of
2019, which was disposed of by this Court, by an order dated 30.08.2024. In
the said Judgment, this Court had held that, in view of the provisions of
Section 26E of the SARFAESI Act, the debt of the petitioner/bank would have
precedence over the recovery of the State revenue, provided, the security
interest in the said property has been registered in accordance with the
provisions of the SARFAESI Act.
RRR, J & HN, J
5. In the present case, the petitioner has produced the registration
details of the security interest in the said property, as required under the
provisions of the SARFAESI Act.
6. In the circumstances, in view of the fact that the recovery of debts
by the petitioner bank has precedence over the recovery of the State revenue,
this Writ Petition is allowed, with a direction to the 3rd respondent to receive
and register the sale certificate issued by the petitioner on 02.01.2024, subject
to the collection of appropriate stamp duty and compliance of other formalities.
7. However, this would not preclude the 2nd respondent from taking
any further steps for recovery of the dues from the 4th respondent in relation to
the subject property. There shall be no order as to costs.
As a sequel, interlocutory applications pending, if any shall stand
closed.
_______________________
R RAGHUNANDAN RAO, J
______________
HARINATH.N, J
21.10.2024
MJA
RRR, J & HN, J
THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO
THE HONOURABLE SRI JUSTICE HARINATH.N
WRIT PETITION No.22827 of 2024
(per Hon'ble Sri Justice R Raghunandan Rao)
21.10.2024
MJA
