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Madras High CourtWP/22967/2016disposed of

Mrs.Sendamaraai, v. The Sub Registrar,

2016-07-12Honourable Mr Justice M. Sathyanarayanan3 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 12.07.2016

CORAM

THE HONOURABLE MR.JUSTICE M.SATHYANARAYANAN W.P.No.22967 of 2016 Mrs.Sendamaraai ... Petitioner Vs.

The Sub Registrar, Sulur, Coimbatore District.

... Respondent Prayer:

Petition filed under Article 226 of the Constitution of India to issue a Writ of Mandamus directing the respondent to forthwith register the sale certificate dated 15.04.2016 executed by the authorized officer of State Bank of India under the provisions of SARFAESI Act in favour of the petitioner and currently kept by the respondent as pending document in Number P83/2016 and return the sale certificate to the petitioner after such registration.

For Petitioner : Mr.P.K.Rajagopal For Respondent : Mr.R.A.S.Senthilvel Additional Government Pleader

O R D E R

By consent, the writ petition is taken up for final disposal.

2.The petitioner would state that one K.R.Gurusamy acting as a guarantor has created mortgage of the land measuring 3.62 1⁄2 acres together with 58714 sq.ft of ACC sheet and RCC roofed factory building at Neelambur Village, Sulur Taluk, Coimbatore District.

3.It is further stated by the petitioner that on account of the default in payment of funds to the State Bank of India, the State Bank of India Stressed Assets Management Branch,

Coimbatore initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI), attached the said properties and published e-auction sale notice and the petitioner became the successful bidder for a sum of Rs.6,80,00,000/- and also claims to have paid the entire amount minus Tax Deduction at Source at the rate of 1%. The Chief Manager, State Bank of India who was the authorized officer under the provisions of the SARFAESI Act, has also executed sale certificate in favour of the petitioner and it was presented by the petitioner for registration before the first respondent on 15.04.2016 and it was numbered as pending document in serial number P83/2016, in the light of the fact that there is an order of attachment before judgment passed by the learned I Additional District Judge, Salem in I.A.No.192 of 2012 in O.S.No.38 of 2012 filed by one Mohammed Rafi against one Sivakami and K.R.Gurusamy who are none other than the guarantors for the above said loan.

4.The grievance expressed by the petitioner is that when he has purchased the property subject to clearance of the debts resulting in order of attachment, there cannot be any impediment on the part of the respondent to register the said certificate and return the same to the petitioner. The petitioner has also complied with all the procedure and norms for being so. 5.Mr.P.K.Rajagopal, learned counsel appearing for the petitioner has drawn the attention of this Court to Section 71 of the Tamil Nadu Registration Manual read with Rule 162 A of the Registration Rules and would submit that the pendency or entry of an attachment before judgment is not a reason to refuse to register a document and even otherwise, property can be sold for attachment and it is for the purchaser to undertake the risk.

Therefore, there cannot be any impediment on the part of the respondent to register the document and to return the same to the petitioner and prayed for appropriate orders. 6.Per contra, Mr.R.A.S.Senthilvel, learned Additional Government Pleader who accepts notice on behalf of the respondent would submit that in the light of the existence of the interim order of attachment, the respondent is not in a position to proceed further and prays for appropriate orders. 7.This Court has carefully considered the rival submissions and also perused the materials placed before it. 8.The respondent sent notice dated 24.05.2016 for which, the State Bank of India, Stressed Assets Management Branch, 1112, Raja Plaza, Avinashi Road, Coimbatore has sent a reply on 03.06.

on the basis of the prayer of an unsecured creditor and steps are being taken to remove/ raise the attachment and also requested the respondent not to withhold/ cancel the sale registration in view of the above stated reasons. The petitioner has also submitted his response in person on 03.06.2016 praying for registration of the said certificate. 9.The position of the State Bank of India is that of a secured creditor and it has exercised it's powers under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 and sold the property in favour of the petitioner through e-auction. Insofar as the notice sent by the respondent dated 24.05.2016 is concerned, the reasons stated therein will not come under the purview of the above stated Registration Act and Rules framed thereunder and even otherwise, the petitioner is willing to undertake the risk by purchasing the property which is the subject matter of attachment.

10.In the light of the facts and circumstances, this writ petition is disposed of by directing the respondent to register the sale certificate presented on 15.04.2016, if the other procedural formalities are complied with and return the same to the petitioner as expeditiously as possible and within a period of three weeks from the date of receipt of a copy of this order. 11.The writ petition is disposed of accordingly. No costs. Sd/- Assistant Registrar /TRUE COPY/ Sub-Assistant Registrar pri To The Sub Registrar, Sulur, Coimbatore District.

+ 1 CC to Mr.P.K.Rajagopal, Advocate SR NO 38874 + 1 CC to Govt. Pleader SR NO 39158 W.P.No.22967 of 2016 GK[CO] GP/21.7