IMPORTANT POINT
Secured creditors' rights under the SARFAESI Act take precedence over subsequent attachment orders, allowing for the registration of sale certificates.

ORDER :

The issue involved in these Writ Petitions is similar and the same are disposed of by this Common Order.

2) The brief facts as set out in the Writ Petitions, relevant for better appreciation of the petitioner’s case are that the 3rd respondent – a proprietary concern represented by the 4th respondent availed various loan facilities to a tune of Rs.4,52,17,985.49 ps., from the petitioner-bank, executed necessary loan documents and created an equitable mortgage by depositing title deeds in respect of the following properties:

(a) Land admeasuring 515 Sq.yrds., bearing Plot No.274, Mayuri-II Jana Chaitanya Plots, Gorantla Village, Amaravathi Road, Guntur, purchased vide sale deed dated 17.04.2012;

(b) Land admeasuring 200 Sq.yards bearing Plot No.1137, Mayuri-II, Janachaitanya Plots, Gorantla, Amaravathi Road, Guntur, purchased vide Registered Sale Deed dated 26.03.2012; and

(c) Land admeasuring 240 Sq.yards, bearing Plot No.261, Arjun-II, Janachaitanya Plots, Gorantla, Amaravathi Road, Guntur, purchased vide Registered Sale Deed dated 23.04.2012.

3) The Memorandum of Deposit of Title Deeds in respect of the above properties were executed initially in the month of November, 2012 and the same were subsequently re-deposited by executing Memorandum of Deposit of Title Deeds (Combined Format) for constructive redeposit of title deeds and fresh deposit of title deeds on 30.01.2019 in favour of the petitioner-bank. In view of the default in repayment of the loan amount, Bank sold the above said properties in auction.

4) The grievance of the petitioner-The South Indian Bank Limited, is that the Registration authorities are not registering the Sale Certificates issued by the Bank under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short `the SARFAESI Act') in respect of the subject matter properties on the premise that they have been included in the list of prohibited category in view of the order of attachment in respect of the same, which was made absolute by the learned I Additional Senior Civil Judge, Guntur in O.S.No.105 of 2020.

5) Heard Mr. Ambatipudi Satyanarayana, learned Senior Counsel appearing for the petitioner and Smt. S. Pranathi, learned Special Government Pleader representing the respondents 1 and 2. Despite service of personal notices, unofficial respondents had not caused appearance.

6) Learned senior counsel for the petitioner-bank inter alia submits that as the borrower/guarantor/mortgagor failed to discharge the loan, the account of the borrower was classified as NPA on 29.08.2021 and by invoking the provisions of SARFAESI Act, the subject matter properties were auctioned on 27.10.2023, 20.09.2023 and 15.03.2024 respectively. He submits that pursuant to the said auctions, the petitioner bank issued Sale Certificates to the respondent No.7 in the respective Writ Petitions. He submits that when the said Sale Certificates were sought to be registered, the 2nd respondent refused to register the same and the petitioner-bank on enquiries learnt that the respondent No.6 herein filed O.S.No.105 of 2020 on the file of the 1st Additional Senior Civil Judge Court, Guntur and obtained an order of attachment of the subject matter properties vide Orders dated 16.12.2020 in I.A.No.229 of 2020 and the same was made absolute on 06.10.2021. By reason of the said orders, he submits that the subject matter properties were included in the list of prohibited properties as per the provisions of the Registration Act and on that premise the Registration of the Sale Certificates were not entertained.

7) Learned Senior Counsel submits that the subject matter properties were mortgaged in favour of the petitioner-bank by deposit of title deeds prior to the order of attachment dated 16.12.2020, passed by the learned I Additional Senior Civil Judge, Guntur, therefore the same is not binding on the bank. He submits that the bank has every reason to believe that the su