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IN THE HIGH COURT OF KERALA AT ERNAKULAM
ZIYAD RAHMAN A.A.
R. Bindu, D/o. Retnavati – Appellant
Versus
State Bank of India, Represented By Its Chief Manager – Respondent
| Table of Content |
|---|
| 1. auction sale under sarfaesi, delays in registration and possession. (Para 1 , 3 , 4 , 5 , 6 , 7) |
| 2. prior proceedings and restoration of writ petition. (Para 8 , 9) |
| 3. parties' contentions on possession, boundaries, bank readiness. (Para 10 , 11 , 12 , 13 , 14) |
| 4. disputed facts unsuitable for writ; bank lapses not clear. (Para 15 , 16 , 17) |
| 5. direct registration and title handover; civil remedies for rest. (Para 18) |
JUDGMENT :
ZIYAD RAHMAN A.A., J.
The petitioner is the daughter of late Sri. Mohanan, who purchased a property from the 1st respondent bank in the auction sale conducted by the 3rd respondent, under the provision of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (in short, ‘SARFAESI Act’), 2002. The grievance of the petitioner is that, despite the fact that, the sale was conducted by the 3rd respondent in favour of the father of the petitioner and Ext.P1 sale certificate was issued, the sale was not registered in the name of the auction purchaser. The petitioner also has a case that the physical possession of the property was not delivered to the auction purchaser. The auction purchaser, the father of the pet
Writ court directs SARFAESI auction sale registration despite delays, relegates possession and property disputes to civil court.
Secured creditors must fully deliver the auctioned property and disclose material defects; failure to do so incurs liability for damages, including refunds with interest.
The bank retains the right to recover debts through mortgaged properties even if the borrower sells the property to a third party, as established under the SARFAESI Act, 2002.
Unregistered documents do not confer ownership of immovable property; valid title requires registration under the Transfer of Property Act.
The right of redemption under SARFAESI Act is extinguished after the issuance of a sale certificate, rendering claims by lessees during such proceedings legally unsustainable.
Burden was on the petitioner to establish, on the basis of firm pleadings and cogent evidence that the respondent-Bank had actively concealed or misrepresented any material fact from the petitioner w....
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