M/S.Karur Vysya Bank v. The District Registrar
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 19.09.2024 CORAM :
THE HONOURABLE MR.JUSTICE N.SATHISH KUMAR M/s.Karur Vysya Bank, Rep. by its Senior Manager, Asset Recovery Branch, Mattuthavani-Melur Road, Near Mattuthavani Bus Stand, Madurai., ... Petitioner Vs.
1.The District Registrar, Registration Department, Tenkasi District.
2.The Sub-Registrar (Joint-II), Registration Department, Tenkasi, Tenkasi District.
3.M/s.Dhanalakshmi Timbers, Rep. by its Managing Partner, No.1/506, Tenkasi Shenkottai, Piranoor Border, Shenkottai, Tenkasi District.
4.Shenbaga Raman 5.Mallika 6.Premkumar 7.Subbaiah ... Respondents 1/5
PRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Mandamus, directing the respondents 1 and 2 to efface / delete the attachment entry in the encumbrance certificate relating to the property in Survey No.556B/4B measuring to an extent of 21 cent and Survey No.556B/4C measuring to an extent of 21 cent, Melagaram Village, Tenkasi District within a reasonable time period fixed by this Court. For Petitioner : Mr.V.Sukumar For R1 & R2 : Mr.C.Satheesh, Government Advocate For R3 & R5 : Mr.H.Arumugam For R4 : No Appearance For R6 : Mr.R.J.Karthick For R7 : Mr.Niranjan S.Kumar
ORDER
The petitioner seeks a direction to the respondents 1 and 2 to efface / delete the attachment entry in the encumbrance certificate, relating to the property in Survey No.556B/4B to an extent of 21 cents and Survey No.556B/4C to an extent of 21 cents, Melagaram Village, Tenkasi District, within a reasonable time period fixed by this Court. 2.It is the case of the petitioner that the properties in question were originally mortgaged by the respondents 3 to 5 to the petitioner Bank on 2/5
29.04.2015. Since they failed to repay the loan amount, the proceedings under SARFAESI Act had been initiated and the demand notice was issued on 10.02.2022 and ultimately, possession notice was issued on 04.02.2022. Thereafter, the properties in question were brought under public auction, wherein the 7th respondent was the successful bidder and the sale certificate was issued in his favour, which was registered on 31.05.2023. In the meanwhile, in the suit filed by the 6th respondent for recovery of money, attachment order has been passed and the same is communicated to the 7th respondent and reflected in the encumbrance. Hence, the petitioner Bank has filed this Writ Petition with the aforesaid prayer.
3.At the outset, this Court is of the view that once a security interest has been created in respect of the property and action initiated under SARFAESI Act is culminated the sale certificate, which was already registered, any attachment later reflected in the entries assumes insignificance. Therefore, since the Bank is the secured creditor, the attachment order passed by the civil Court after initiation of the proceedings under SARFEASI Act, will have no impact. It will automatically become insignificance. 3/5
4.With the above observation, this Writ Petition is disposed of. It is made clear that if the petitioner is willing to register this order, it is for the petitioner to present the same for registration and on presentation, the same shall be registered immediately. No costs.
19.09.2024 NCC : Yes / No Index : Yes / No Internet : Yes / No Yuva To 1.The District Registrar, Registration Department, Tenkasi District.
2.The Sub-Registrar (Joint-II), Registration Department, Tenkasi, Tenkasi District.
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N.SATHISH KUMAR, J Yuva 19.09.2024 5/5