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.

ORDER :

M.NAGAPRASANNA, J.

1. The petitioner is before this Court seeking the following prayer:

“A. Issue a writ of certiorari or any other writ order or direction quashing the impugned Endorsement bearing No. U.No.Ka/ Ho.Sa/195/2024-25 dated 06/02/2025 vide Annexure-J to the writ petition issued by Respondent No.5.

B. Issue a writ, order or direction in the nature of mandamus to the Respondent No.5 to register the sale certificate dated 01/08/2024 issued by the Petitioner Bank in favour of auction purchaser Mr. Ibrahim S/o. Fakruddin Sab (Annexure-H) by taking requisite stamp duty and Registration charges.

C. Issue such other writ order or direction as deemed fit by this Hon’ble Court to meet the ends of justice.

2. The petitioner is the State Bank of India (hereinafter referred to as “the bank” for short). Respondent Nos.1 to 3 execute loan agreement in exchange of mortgage of the properties of respondent Nos.1 to 3. The borrowers default in payment of the amount and the bank instituted proceedings under the SARFAESI Act, 2002 by issuing a notice on 02.01.2020. A possession notice under subsection 4 of Section 13 was also passed by the concerned Court. The possession notice was notified. The bank sells the property in a public auction. The issue is not with regard to the veracity of the sale. The Registering Authority refused to register the document on the score that there is a suit pending in O.S. No.272 of 2022 before the concerned Court on the objection filed by the respondent No.4 not to register the property and in the suit there is an injunction operating that the parties shall not alienate the suit property. This is what is called in question in the case at hand.

3. Learned counsel appearing for the petitioner, Shri K.L. Patil would take this Court through the documents appended to the petition and the law in this regard to contend that the charge under the SARFAESI Act, 2002 would prevail over any interim order that interim order even the final order passed by a Civil Court between the parties. He would submit that long after the creation of the mortgage, the suit is instituted deliberately to frustrate the rights of the secured creditor or the bank. Even otherwise, learned counsel submits the registering authority cannot go beyond what is sought to be registered is by now the settled principle of law.

4. Learned counsel for the fourth respondent would vehemently refute the submission in contending that civil suit is undoubtedly maintainable even against the bank under SARFAESI proceedings and the order not to alienate the property would include and bind the bank not to sell the property. Therefore, he would submit that the petition deserves to be rejected, await the outcome of the suit in O.S. No.272 of 2022.

5. I have given my anxious consideration to the submissions of the learned counsel appearing for the parties and perused the records. .

6. The issue need not detain this Court for long or delve deep into the matter. This Court considering identical circumstance following the Full bench judgment of the Punjab and Haryana High Court has held as follows:

“2. The petitioner is before this Court, seeking for the following prayer:

"a) Issue a writ, order or direction in the nature of mandamus to the Respondent No.2 and 3 to register the Sale Certificate dated. 13.09.2023 issued by the Petitioner Bank in favour of Mrs.Thejaswini (Annexure-F) by taking requisite Stamp Duty and Registration charges.

b) Issue any other Writ, Order or direction as this Hon'ble Court deems fit in the circumstances of the case in the interest of justice and equity."

3. Learned counsel