Madras High Court
State Bank Of India vs The District Registrar on 15 November, 2022
W.P(MD)No.18059 of 2015
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 15.11.2022
CORAM
THE HON'BLE MR.JUSTICE R.VIJAYAKUMAR
W.P(MD)No.18059 of 2015
and
M.P(MD)Nos.1 to 3 of 2015
State Bank of India,
Represented through its Chief Manager /
Authorized Officer,
SME Siruthozhil Branch,
No.9D-1, Ramakrishnapuram,
Karur-639 001. ... Petitioner
Vs.
1.The District Registrar,
District Registrar Office,
Karur.
2.The Sub Registrar,
Mela Karur,
Karur District.
3.P.N.Sivasamy
4.S.Vijayalakshmi
5.S.Navaneethan
6.S.Prem
7.J.T.Knitts
8.R.Kumaran ... Respondents
1/7
https://www.mhc.tn.gov.in/judis
W.P(MD)No.18059 of 2015
PRAYER : Writ Petition filed under Article 226 of the Constitution of
India, praying this Court to issue a Writ of Certiorarified Mandamus,
calling for the records of the impugned check slip issued by the second
respondent herein in No.1/January, dated 07.01.2015 and quash the same
and further direct the respondents 1 & 2 herein to register the sale
certificate, dated 13.11.2014, executed by the petitioner bank in favour
of eighth respondent herein in respect of the land and buildings in Survey
No.150/6 to an extent of 1155 Sq.Ft in Periyar Nagar, Ward No.13,
Vengamedu, Karur Taluk & District.
For Petitioner : M/s.V.Meenakshisundaram
For R-1 & R-2 : M/s.K.S.Selvaganesan
Additional Government Pleader
For R-3 : M/s.P.R.Prithiviraj
for M/s.D.Sadiq Raja
For R-4 to R-7 : No appearance
For R-8 : M/s.V.Sukumar
ORDER
The present Writ Petition has been filed challenging a check slip
issued by the second respondent herein, under which, he has refused to
register a sale certificate issued by the petitioner in favour of the eighth
respondent herein.
https://www.mhc.tn.gov.in/judis
W.P(MD)No.18059 of 2015
2. According to the learned Counsel for the petitioner, respondents
3 to 6 have borrowed money from the writ petitioner Bank and they have
also executed a registered, Memorandum relating to deposit of title deeds
on 02.05.2013. Since the monthly installments were not regularly paid,
the loan account was declared as NPA even in the year 2013 itself.
Thereafter, the property was brought to auction on 02.09.2014 under the
Securitisation and Reconstruction of Financial Assets and Enforcement
of Security Interest (SARFAESI) Act, 2002. The sale had taken place
and the same was confirmed on 08.10.2014. A sale certificate was issued
in favour of the eighth respondent herein on 29.10.2014.
3. When the eighth respondent attempted to register the said sale
certificate before the second respondent, the second respondent had
passed the impugned order, refusing to register the said sale deed. The
ground that is alleged in the refusal order is that, already the property in
dispute has been attached by a civil Court in I.A.No.111 of 2014 in
O.S.No.65 of 2014 by an order, dated 01.04.2014. This order is under
challenge in the present writ petition.
https://www.mhc.tn.gov.in/judis
W.P(MD)No.18059 of 2015
4. According to the learned Counsel for the petitioner Bank, the
Memorandum of Deposit of title deeds has been registered in relation to
the property in dispute on 02.05.2013 itself. Only thereafter, the civil suit
has been filed and an order of attachment before judgment has been
passed on 01.04.2014. Hence, according to the learned Counsel for the
petitioner, the petitioner being a secured creditor he has got priority over
all the debts and hence, the sale certificate executed by the petitioner
Bank in favour of the eighth respondent has to be registered by the
second respondent herein.
5. The learned Counsel for the petitioner has further contended
that though the property in dispute was also subject matter of attachment
by the civil Court along with other properties, the property in dispute was
not sold by the civil Court and hence, no further encumbrance has been
created over the property covered in the sale certificate. The learned
Counsel appearing for the third respondent, who is the plaintiff / decree
holder in O.S.No.65 of 2014 also confirms that the property covered in
the sale certificate has not been sold in the civil Court auction.
https://www.mhc.tn.gov.in/judis
W.P(MD)No.18059 of 2015
6. The learned Counsel appearing for the writ petitioner has
brought to the notice of the Court the Hon'ble Full Bench of this Court
reported in 2016 (6) CTC page 769 (The Assistant Commissioner (CT)
Vs. The Indian Overseas Bank. As per the judgment of the Hon'ble Full
Bench, the rights of the secured creditor to realise the secured debts due
and payable by sale of the assets over which the security interest is
created, would have priority over all debts and Government dues
including revenues, taxes, cesses and rates due to the Central
Government, State Government or Local Authority. In the present case,
only the attachment before judgment order passed by the civil Court is
cited as an impediment for registering the sale certificate. Hence, it is
clear that this attachment order has emanated only from a private dispute
and it is not a statutory due. That apart, the civil suit has been filed one
year after the Memorandum relating to deposit of title deeds has been
registered. The Memorandum of Deposit has been registered on
02.05.2013 and an order of attachment before judgment has been
effected only on 01.04.2014 in I.A.No.111 of 2014 in O.S.No.65 of 2014
on the file of the Sub Court, Karur and hence the same will not be
binding upon the writ petitioner or the eighth respondent herein.
https://www.mhc.tn.gov.in/judis
W.P(MD)No.18059 of 2015
7. In view of the above said facts, the order impugned in the writ
petition is set aside. The second respondent is directed to register the sale
certificate issued by the petitioner in favour of the eighth respondent.
8. With the above said observation, the writ petition stands
allowed. There shall be no order as to costs. Consequently, connected
Miscellaneous Petitions stand closed.
15.11.2022
Index : Yes / No
Internet : Yes / No
btr
To
1.The District Registrar,
District Registrar Office,
Karur.
2.The Sub Registrar,
Mela Karur,
Karur District.
https://www.mhc.tn.gov.in/judis
W.P(MD)No.18059 of 2015
R.VIJAYAKUMAR, J.
btr
Order made in
W.P(MD)No.18059 of 2015
15.11.2022
https://www.mhc.tn.gov.in/judis
