Tamilnadu Mercantile Bank Ltd vs The Sub-Registrar
2021 Latest Caselaw 13916 Mad

                                                                               W.P.(MD).No.11629 of 2021


                           BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                                  DATED : 13.07.2021

                                                       CORAM :

                              THE HONOURABLE MR.JUSTICE N.ANAND VENKATESH

                                               W.P.(MD).No.11629 of 2021


                     Tamilnadu Mercantile Bank Ltd.,
                     Thoothukudi Main Branch,
                     56 & 57, Beach Road,
                     Thoothukudi-628 001.                               ... Petitioner
                                                          Vs.


                     1.The Sub-Registrar,
                       Ottapidaram,
                       Thoothukudi District.

                     2.Commercial Tax Officer-I (FAC)
                       Commercial Tax Office,
                       No.10/9, Sivankovil Street,
                       Ettaiyapuram-627 902.                            ... Respondents

                     Prayer: This Petition filed under Article 226 of the Constitution of India, to

                     issue a Writ of Certiorarified Mandamus, calling for the records in regard to

                     the proceedings in Na.Ka.No.70/2021, dated 15.03.2021 of the first

                     respondent and quash the same and direct the first respondent to entertain and

                     admit for registration the conveyance deed of the writ petitioner in favour of

                     the Auction purchaser in respect of the land in an extent of 28 cents in S.No.

                     65/4, Puthiyamputhur Village, Ottapidaram Taluk, Thoothukudi District.

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https://www.mhc.tn.gov.in/judis/
                                                                                    W.P.(MD).No.11629 of 2021


                                     For Petitioner                   : Mr.ARM.Ramesh

                                     For R1 & R2                      : Mr.M.Lingadurai
                                                                      Government Advocate


                                                            ORDER

On consent given by either side, the main writ petition itself is taken up

for final hearing.

2. The subject matter of challenge in the present writ petition is the

impugned proceedings of the first respondent, dated 15.03.2021 wherein, the

document presented for registration by the petitioner was refused to be

entertained on the ground that the second respondent, namely, the

Commercial Tax Officer has issued a letter stating that certain amount is due

and payable by the original owner of the property and therefore, no

transaction should be permitted by the first respondent.

3. The case of the petitioner is that loan facilities were extended to

M/s.P.M.D.Saw Mills and since the same was not repaid back, the loan was

declared as NPA and proceedings were initiated under the SARFAESI Act.

The subject property was brought for sale and the sale certificate was issued

in favour of one Natarajan, who was the successful bidder.

https://www.mhc.tn.gov.in/judis/ W.P.(MD).No.11629 of 2021

4. When the sale certificate was presented for registration before the

first respondent, the same was refused to be registered on the ground that the

property has been attached by the second respondent. Aggrieved by the

same, the present writ petition has been filed before this Court.

5. Heard Mr.ARM.Ramesh, learned counsel appearing for the

petitioner and Mr.M.Lingadurai, learned Government Advocate appearing for

the respondents.

6. The issue involved in the present writ petition is squarely covered by

the Full Bench judgment of this Court in W.P.No.2675 of 2011 etc., batch

dated 10.11.2016. The Full Bench has categorically held that the secured

creditor has a priority over the debt and this priority will even extend to the

Government dues including Revenue, Tax etc. This judgment has been

subsequently followed consistently by this Court and this Court has held that

the debt of the secured creditor must be given priority and the registering

authority cannot refuse to register the document on the ground that there is an

attachment by the Commercial Tax Department.

https://www.mhc.tn.gov.in/judis/ W.P.(MD).No.11629 of 2021

7. In view of the above discussion, the impugned refusal letter issued

by the first respondent, dated 15.03.2021 is hereby quashed. There shall be a

direction to the first respondent to entertain the sale certificate presented for

registration and the same shall be registered, if it is otherwise in order and

necessary stamp duty and registration charges are paid. The documents shall

be released immediately after registration.

8. This writ petition is allowed with the above direction. No costs.

13.07.2021

Internet : Yes/No Index : Yes/No am

NOTE:

In view of the present lock down owing to COVID-19 pandemic, a web copy of the order may be utilized for official purposes, but, ensuring that the copy of the order that is presented is the correct copy, shall be the responsibility of the advocate/litigant concerned.

https://www.mhc.tn.gov.in/judis/ W.P.(MD).No.11629 of 2021

To

1.The Sub-Registrar, Ottapidaram, Thoothukudi District.

2.Commercial Tax Officer-I (FAC) Commercial Tax Office, No.10/9, Sivankovil Street, Ettaiyapuram-627 902.

https://www.mhc.tn.gov.in/judis/ W.P.(MD).No.11629 of 2021

N.ANAND VENKATESH, J.

am

Order made in

W.P.(MD).No.11629 of 2021

13.07.2021

https://www.mhc.tn.gov.in/judis/