Back
D. RAMESH
State Bank of India – Appellant
Versus
State of Andhra Pradesh – Respondent
JUDGMENT
D. Ramesh, J. - The present Writ Petition came to be filed seeking issuance of a writ of Mandamus to declare the inaction of the 2nd respondents in not receiving and not registering the sale certificate dated 3.01.2020 produced by the petitioner-Bank in favour of the 3rd respondent under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the 'SARFAESI Act') in respect of the property in dispute, as arbitrary, illegal and violative of principles of natural justice.
2. Heard Mr. S. Satyanarayana Moorthy, learned counsel for the petitioner and also Government Pleader for Revenue on behalf of Respondents. There is no representation on behalf of the unofficial respondents.
3. The circumstances, which lead to filing of the present writ petition are as under:
The 4th respondent herein offered the subject property as security to the petitioner-Bank for repayment of various loan facilities sanctioned to him.
As the 4th respondent committed default in payment of dues, in accordance with the agreed terms, the account of the 4th respondent was classified as NPA and accordingly, the procedure
There cannot be any doubt that the rights of a secured creditor to realize the debts due and payable by sale of assets over which security interest is created, would have priority over all the debts.
Section 26(E) of the SARFAESI Act and Section 31B of Act 51 of 1993, there cannot be any doubt that the rights of a secured creditor to realize the debts due and payable by sale of assets over which ....
Secured creditors have priority over debts, permitting registration of sale certificates despite existing civil court attachments, with purchasers taking the property subject to said attachments.
The SARFAESI Act affirms secured creditors' priority over state debts, overturning any conflicting tax attachments regarding sold properties.
The main legal point established in the judgment is that the claim of the secured creditor under the SARFAESI Act has priority over other debts and attachments, and attachments made by other parties ....
Section 26-E of the SARFAESI Act prioritizes secured creditors over tax dues, establishing that tax attachments are subordinate to secured interests.
Secured creditors under SARFAESI Act have priority over all other debts, including tax attachments, affirming the necessity of registering Sale Certificates in favor of auction purchasers.
Secured creditors' rights under the SARFAESI Act take precedence over subsequent attachment orders, allowing for the registration of sale certificates.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
