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DHIRAJ SINGH THAKUR, RAVI CHEEMALAPATI
Union Bank Of India – Appellant
Versus
State Of Andhra Pradesh – Respondent
ORDER :
(Per Sri Justice Ravi Cheemalapati)
Action of the Registering Authorities in refusing to remove the subject properties from prohibited property list and not registering sale certificates issued by the petitioner Bank in favour of auction purchasers under Securitisation And Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Hereinafter, referred to as ‘SARFAESI Act’) and Rules framed thereunder, is questioned in this Writ Petition being illegal, arbitrary and violative of the provisions of SARFAESI Act
2. The case of the petitioner Bank, in brief, is that respondent no.6, availed credit facilities from erstwhile Andhra Bank and offered the subject properties i.e. items 1 to 3 as security for due discharge of the credit facilities availed or may be availed from time to time and by depositing original title deeds and by execution of Memorandum of Deposit of Title deeds initially on 07.11.2008, 30.01.2010 and 30.01.2010 in respect of item nos.1 to 3 respectively created equitable mortgage over the said properties, which was extended from time to time by execution of Memoranda on 10.12.2013, 20.10.2017 and Registered Memorandum of Deposit of title de
The SARFAESI Act's provisions override civil court injunctions, allowing secured creditors to enforce their rights despite conflicting orders.
The main legal point established in the judgment is that attachment orders subsequent to the mortgage do not affect the rights of the secured creditor over the subject property, and sale certificates....
Secured creditors' rights under the SARFAESI Act take precedence over subsequent attachment orders, allowing for the registration of sale certificates.
A secured creditor's rights under the SARFAESI Act are unaffected by a civil court's interim injunction binding only the parties in the suit.
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