M.M. Sundresh, J.

1. The petitioner, being a Company incorporated under the Companies Act, 1956 and Securitisation Company under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ('SARFAESI Act'') and also a financial institution under Section 2(h)(ia) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 ('RDDB Act'), has come forward to file this writ petition seeking to set aside the sale deed dated 5.7.2007 registered as Document No. 2179 of 2007 Book 1 registered by respondent No. 2 at the instance of respondent No. 5 in favour of respondent No. 6 with a consequential prayer to remove the entry made therein.

Brief Facts:--

2. As the issues involve apart from locus standi of the petitioner, several facts, a proper narration is imperative.

3. The Indian Bank, Chennai, in the year 1992, had extended financial facilities in favour of borrowers/guarantors known as MVR Group of Companies. In the years 1995 and 1996, the documents of mortgage were executed qua immovable properties for approximate extent of 120 grounds in favour of the Indian Bank. Needless to state that the borrowers/guarantors did not repay the loan.

4. Original Applications have been filed in the year 1996 for recovery of money under RDDB Act including sale of mortgaged assets. Thereafter, notice under Section 13(2) of the SARFAESI Act was issued by M/s. Indian Bank on 15.12.2004. It was followed by a demand notice dated 27.1.2005. The possession notice was issued on 30.3.2005. The procedure contemplated under the SARFAESI Act has been followed for the above said action.

5. At that point of time, respondents No. 3 and 4 (not appearing before this Court despite the notice having been served) executed a registered power of attorney in document No. 2115 of 2006 dated 23.8.2006 in favour of respondent No. 5. The said power deed does not assign right of alienation or encumbrance without the written consent of the principal. The relevant portion of Clause 7 of the power deed is extracted hereunder for better appreciation.

"7. To negotiate with any third party/s claimant/s including broker/s and also the Banks and other financial institutions claimant/s if any in the schedule mentioned properties and to settle such claims and on this behalf our attorney is empowered to do all acts, deeds and things. To enter upon the schedule mentioned properties for the survey of the same. The power agent herein appointed shall have no power to encumber the Schedule mentioned properties without the written consent of us."

6. According to respondents No. 4 and 5, it was nothing but an oversight/mistake. Thus, a subsequent power deed dated on 7.6.2007 has been executed, though unregistered, duly authorised to get over the same. Following is the relevant recitals in the subsequent deed said to have been executed by respondents No. 3 and 4:

"AND WHEREAS, under the said General Power of Attorney Deed though we have intended to confer power including to sell the Schedule mentioned properties under clauses of the said General Power of Attorney Deed, by inadvertence and over sight the said clause relating to power to sell the Schedule mentioned properties was omitted to be included therein;

AND WHEREAS, now our Agent Mr. S.P. Velayutham has found the said mistake and requested for execution of additional and supplemental General Power of Attorney Deed empowering him to sell the schedule mentioned properties and to receive the sale consideration therefor in continuation of the earlier General Power of Attorney Deed dated 23.08.2006 referred to above;

AND WHEREAS, we as the Principals under the General Power of Attorney Deed dated 23.08.2006 are satisfied with the mistake pointed out by our Agent and accordingly we also agreed to execute this General Power of Attorney Deed and as such we are appointing Mr. S.P. Velayutham, son of Sabapathy, Hindu, aged about 50 years, residing at No. 5, Sabari Street, Ma