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M. NAGAPRASANNA
T. Bharathgowda – Appellant
Versus
State of Karnataka – Respondent
ORDER
M. Nagaprasanna, J.
The petitioner is before this Court seeking a direction by issuance of a writ in the nature of mandamus directing the 2nd respondent/Sub-Registrar to register the sale certificate dated 30th September, 2022 issued by the 3rd respondent in favour of the petitioner.
2. Heard Sri S. Swaroop, learned counsel appearing for the petitioner, Smt. Navya Shekhar, learned Additional Government Advocate appearing for respondents 1 and 2 and Sri Vignesh Shetty, learned counsel for respondent No.3.
3. The facts adumbrated are as follows:-
One Sri Thimme Gowda, Sri T. Raghavendra Gowda and Sri T. Prasanna Raghavendra Gowda were the absolute owners of the property bearing No.19, situated at 11th Cross, Wilson Garden, Hombegowdanagara, Bengaluru measuring 6000 sq.ft. The aforesaid owners of the property had mortgaged the subject property and availed a loan from Canara Bank, the 3rd respondent. The loan gets into default, the default gets into initiation of proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ('hereinafter referred to as 'the SARFAESI Act' for short) to recover the amount. Sale of the propert
The rights of secured creditors under the SARFAESI Act take precedence over statutory dues, and the Sub-Registrar cannot refuse registration of documents without valid legal grounds as specified in t....
The court established that the rights of secured creditors prevail over claims from the Enforcement Directorate, and the Sub-Registrar must register sale certificates as mandated by law.
A mortgagee bank's sale certificate cannot be denied registration due to prior attachment orders, as secured creditors' rights under the SARFAESI Act prevail over tax attachment claims.
Point of law: Whether non-filing of appeal provided under the provisions of the Registration Act, 1908 against the proceedings of the Sub-Registrar, Patamata, Vijayawada dated 20.10.2017, is fatal to....
Point of law: mortgage was created by the assessee much before a demand was made under Rule 2 and even before an order of assessment was passed voidity under Section 281(1) is not automatic, the peti....
The court emphasized the priority of charge in favor of the secured creditor over the charge in favor of the State for tax due under the Value Added Tax of the State.
The main legal point established in the judgment is the priority of the secured creditor's dues over other creditors' claims, as determined by the SARFAESI Act and relevant case law.
Secured creditors' debts take precedence over state tax claims, as established by Section 26E of the SARFAESI Act.
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