The court held that unilateral declarations and cancellations cannot be registered by a Sub-Registrar without proper authority and due process, emphasizing adherence to legal standards in document registration.

ORDER :

Suraj Govindaraj, J.

1. The Petitioner in W.P.No.28962/2015 is before this Court seeking for the following reliefs:

a. To issue a writ of Certiorari to quash the impounding letter bearing No. SRO/Peenya/1203/2014-15 vide Annexure-J dated 28.2.2015 issued by the Senior Sub Registrar, Peenya Bangalore.

b. Grant such other relief as deemed fit to this Hon’ble Court in the facts and circumstances of the case.

2. The Petitioner in W.P.No.9193/2017 is before this Court seeking for the following reliefs:

i. To issue a writ of Certiorari or Mandamus to quash the Impugned Deed of Cancellation dated 03.10.2016 registered vide Document No.4707/2016-17 in Book I in the office of the Sub-Registrar, Peenya, Bangalore & Deed of Declaration dated 03.10.2016 registered vide Document No.4706/2016-17 Book I in office of the Sub-Registrar, Peenya produced as Annexure-O and P, respectively.

ii. Grant such other relief as deemed fit to this Hon’ble Court in the facts and circumstances of the case.

3. The Petitioner in W.P.No.9578/2017 is before this Court seeking for the following reliefs:

i. To issue a writ of Certiorari or Mandamus to quash the registration by the Senior Sub-registrar, Peenya, Bangalore of the Impugned Gift Deed executed by Respondent No.4 in favour of Respondent No.5 dated 30th September 2014 vide Document No.554/14-15 and all subsequent transactions thereafter produced as Annexure-P and further remove all the entries in relation to the registration thereof with respect to the Scheduled Property from its records.

ii. Grant such other relief as deemed fit to this Hon’ble Court in the facts and circumstances of the case.

4. The petitioners in each of the above matters are Asset Reconstruction Company (India) Limited (ARCIL) registered as Securitisation and Reconstruction Company under Section 3 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security interest Act, 2002 (hereinafter referred to as ‘SARFAESI Act’). The petitioner is also a financial institution under Section 2(h)(ia) of Recovery of Debts due to Banks and Financial Institutions Act, 1993 and registered with the Reserve Bank of India under Section 3 of SARFAESI Act.

5. The facts in each of the above petitions are more or less the same.

6. The original lender - Indian Overseas Bank (hereinafter referred to as ‘IOB’) had for the purchase of the Secured Property and for the development and construction of residential flats/apartments on the Secured Property vide its sanction letters dated 12.04.2004, 17.11.2005, 20.06.2006, 24.12.2007 and 23.05.2008 granted diverse financial assistance to borrower – M/s.Sridevi Hospital (hereinafter referred to as ‘Sridevi’).

7. As security for the said financial assistance, availed from IOB, Sridevi had created an equitable mortgage over Plot No.ML-8D, measuring 1.46 acres, situated at Sy.No.2, Peenya Plantation, Yeshwantpura, Hobli, Bangalore by depositing the title deeds of the said property with IOB.

8. Sridevi had also executed various other documents such as a Loan Agreement, Deed of Hypothecation, Guarantee, etc. in favour of IOB. Sridevi having defaulted in making payment of the dues on the said loan accounts, the loan account was treated as non-performing asset as per Reserve Bank of India (hereinafter referred to as ‘RBI’) guidelines and it is thereafter that IOB executed a Deed of Assignment on 31.8.2013, whereunder IOB sold, assigned, transferred and released all financial assets pertaining to the account of IOB including all security interest, guarantees, rights, title and interest therein to ARCIL.

9. Pursuant to the assignment in terms of Section 5(4) of the SARFAESI Act, ARCIL being entitled to pursue all proceedings to recover the dues having taken assignment of all the rights of the IOB, ARCIL informed Sridevi that it had taken over the financial assistance granted by IOB vide its letter dated 01.09.2010. Sridevi replied to the same on 07.09.2010, stating that it was interested in settlement o