Icici Bank Limited v. The Sub Registrar
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 25.11.2024
CORAM:
THE HONOURABLE MR.JUSTICE G.K.ILANTHIRAIYAN and W.M.P.(MD) No.20700 of 2024 ICICI Bank Limited Plot No.24, South Phase Ambattur Industrial Estate Block No.1, Ambattur Chennai-600 058 Tamil Nadu rep.by the Authorized Signatory Vinothkumar Munusamy ... Petitioner -vs1.The Sub Registrar Joint 1 Kumbakonam Kumbakonam-612 001 2.The Deputy Superintendent of Police Economic Offences Wing Tanjore Department No.53, Rajappa Nagar 1st Cross Thanjavur-613 001
3.The Director of Enforcement Office of the Joint Director Chennai Zone-II rep.by its The Assistant Director Sasthiri Bhavan B-Wing, 3rd Floor, 3rd Block No.26, Haddows Road Chennai-600 006 4.Balamurugan Kirubasankar ... Respondents PRAYER: Petition filed under Article 226 of the Constitution of India, to issue a writ of certiorarified mandamus directing the first respondent to receive and register the Sale Certificate dated 14.02.2024 executed on behalf of the petitioner and in favour of the fourth respondent, on receipt of required stamp duty and registration fees in accordance with law and not refuse any registration acting on communications in Na.Kaa.No.
429/DSP/EOW/TAN/Genl/2023 and F.No.ECIR/CEZO-II/13/2023 dated 05.09.2023 and 27.03.2024 on the file of the second respondent and third respondent respectively.
For Petitioner :
Mr.Om Prakash, Senior Advocate assisted by Mr.V.Veerapandian for M/s.Vast Law Associates For Respondents :
Mr.Veera Kathiravan Additional Advocate General assisted by Mr.M.Sarangan Additional Government Pleader for R1 Ms.M.Aasha Government Advocate (Criminal Side) for R2 Mr.K.Govindarajan Deputy Solicitor General of India for R3
O R D E R
This writ petition has been filed for a direction to the first respondent to receive and register the sale certificate dated 14.02.2024, executed by the petitioner - Bank in favour of the fourth respondent.
2. One Mr.M.R.Ganesh along with the co-applicant approached the petitioner - Bank for housing loan. He mortgaged the property comprised old T.S.No.2212, new T.S.No.22/12/1B2 and old T.S.No.2212/1B2, new T.S.No.2212/1B4, situated at Sri Nagar, Moorthy Garden, Municipal Ward No. 6, Kumbakonam Town and availed loan to the tune of Rs.1,30,00,000.00 with an insurance to the tune of Rs.1,62,670.00. Subsequently, he committed default and the property, which was mortgaged, was brought for auction
under the SARFAESI Act. During auction sale, the fourth respondent was the highest bidder and the property was sold to the fourth respondent for a total sale consideration of Rs.4,59,10,000/-. After adjusting the total outstanding amount of Rs.1,79,39,570/-, the balance amount of Rs.2,75,11,330/- is still available with the petitioner - Bank. Thereafter, the fourth respondent was issued with a sale certificate and the same was presented before the first respondent for registration. However, the first respondent refused to register the sale certificate, since the subject property was purchased from crime proceeds and the auction purchaser is also a relative of one of the accused in Crime No.3 of 2021, on the file of the second respondent. Hence, this writ petition.
3. The counter affidavit filed by the third respondent reveals that the original borrower, namely, M.R.Ganesh had purchased the suit property from crime proceeds. Therefore, the second respondent requested the first respondent to furnish a copy of the latest registered deed and encumbrance certificate in respect of the subject property. However, it is only a requisition to the first respondent to bring the subject property to the notice of the third respondent in order to avoid any leakage of proceeds of crime.
4. The counter affidavit filed by the second respondent shows that after registration of the case as against the original borrower and others and during the course of investigation, it was found that the subject property was purchased out of crime proceeds. Therefore, the subject property is now proposed to be attached under the TNPID Act.
5. In view of the above, sofar, the subject property has not been attached by the Government under the TNPID Act, pursuant to the registration of a case as against the borrower. Admittedly, the borrower availed a housing loan. The subject property was mortgaged in favour of the petitioner - Bank and thereafter, he committed default in making the repayment. Therefore, the petitioner - Bank being the secured creditor is entitled to bring the subject property for auction to realise the loan amount under Section 26(C) of the SARFAESI Act, whereby any property registered by a secured creditor with CERSAI, the claim of such secured creditor shall have priority over any subsequent interest created upon such property. Therefore, the petitioner, has rightly brought the subject property for sale, wherein the fourth respondent has purchased the same. Therefore, the first respondent
ought not to have refused to register the sale certificate presented by the petitioner - Bank.
6. Hence, the petitioner - Bank is directed to re-present the sale certificate, dated 14.02.2024, before the first respondent, for registration and release the same to the fourth respondent forthwith, if it is otherwise in order. Further, the petitioner - Bank is directed to deposit the balance sale consideration of Rs.2,75,11,330/- to the credit of the case in Crime No.3 of 2021, on the file of the second respondent, forthwith.
7. With the above directions, this writ petition is allowed. No costs. Consequently, connected miscellaneous petition is closed. 25.11.2024 NCC :
Yes / No Index :
Yes / No Internet :
Yes / No krk
To:
1.The Sub Registrar, Joint 1 Kumbakonam, Kumbakonam-612 001.
2.The Deputy Superintendent of Police, Economic Offences Wing, Tanjore Department, No.53, Rajappa Nagar, 1st Cross, Thanjavur-613 001.
3.The Director of Enforcement, Office of the Joint Director, Chennai Zone-II, rep.by its The Assistant Director, Sasthiri Bhavan, B-Wing, 3rd Floor, 3rd Block, No.26, Haddows Road, Chennai-600 006.
G.K.ILANTHIRAIYAN , J.
krk and W.M.P.(MD) No.20700 of 2024 25.11.2024