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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
SURAJ GOVINDARAJ
Adidev Polymers Private Ltd, Rep By Its Director Mr. Suresh Kumar Ramsisaria – Appellant
Versus
State Bank of Patiala, MID Corporation Branch, Badami House, N.S. Square, Bangalore – Respondent
Order :
(SURAJ GOVINDARAJ, J.)
1. The Petitioner is before this Court seeking for the following reliefs:
a. The Respondent-1 State Bank of Patiala, and its official to facilitate registration of Sale Certificate in favour of the Petitioner and for that purpose to do all such acts, so that sale certificate issued by it gets registered.
b. The Respondent No.2 Bank and the Respondent No.3 may be directed to raise the attachment order which has been passed in respect of the property purchased by the petitioner-1 viz, property bearing Municipal Corporation No.97, (PID No.38-12-97) situated at 2nd main road, Coconut Garden, BBMP Ward No.38, Nagarbhavi, Bangalore, measuring East to West 55 feet and North to South 75 feet on Eastern side and 69 feet on Western side comprising an area of 3960 square feet;
c. The Respondent-2 Bank and the Respondent-3 may be directed that amount lying with the Respondent-1 bank may be attached by them to recover their dues and for recovering their dues they cannot attach the property which has been sold in public auction to the Petitioner herein, by the respondent-1 Bank.
d. To quash the attachment orders passed by the Respondent-2 and the respondent-3 in respect
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.
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.
An order of attachment cannot be a bar to register a document, and the sale of a subject property pending the order of attachment is void only as against the claims enforceable under the order of att....
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.
The main legal point established in the judgment is the priority of secured creditors, the overriding effect of the SARFAESI Act, and the protection of rights of auction purchasers.
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....
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.
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