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2019 Supreme(Mad) 2134

IN THE HIGH COURT OF JUDICATURE AT MADRAS
K. RAVICHANDRABAABU, J.
M/s. Pegasus Assets Reconstruction Private Ltd. - Petitioner
Vs.
The Inspector of General Registration, Government of Tamil Nadu - Respondents
W.P.No.1094 of 2019
Decided On : 26-03-2019

Advocates Appeared:
For the Petitioner: Mr. Elayaraj Kumar for M/s. Ramalingam and Associates
For the Respondents:Mr. P.P. Purushothaman, Government Advocate

Headnote:

Land Revenue Act - section 149 - properties referred to in assignment agreement – Jurisdiction – Claim of compensation - Sale of property attached - Assignment agreement was made in respect of the property situated in Village in addition to the property lying within the jurisdiction of respondent – Hence Joint Sub Registrar-II, Coimbatore was requested to inform whether there is any impediment in registering the assignment deed comprising the properties Village mentioned therein - Joint Sub-Registrar-II, Coimbatore informed that two attachments made by Regional Provident Fund Commissioner, Coimbatore against Village properties, are subsisting. As the subsisting attachments are considered as impediment for registering assignment deed document is kept pending for satisfaction or raising of attachments - Learned counsel for petitioner submitted that respondent is not justified in refusing to register document and release same to petitioner only on the reason that there are subsisting attachments against properties referred to in said document - In support of his contention learned counsel relied on a recent decision of this Court made in made in BNP Paribas Home Finance Limited – Held, Dictum laid down in the above judgment gives a fitting answer to the issue raised in this writ petition - So far as the order of attachment passed by the DRT is concerned, the transfer is not void generally but it is void only as against claims enforceable under the said attachment. Therefore Court opinion that the sale of the property attached cannot be construed as illegal sale – However respondent bank exercises its right as against the property cannot raise any objection because the sale of the vendor in favor of petitioner is void in respect of the order of attachment obtained by respondent bank - So, even if the property is sold in favor of petitioner respondent bank can always exercise its right as against the said property - In view of the above finding Court opinion that the sale of the subject property pending the order of attachment is void only as against the claims enforceable under the order of said attachment and not in respect of other claims – Therefore sale of the property which is under attachment, cannot be said as illegal. In the light of what is stated above, the writ petition is allowed and respondent-Sub Registrar Madurai, is directed to release the registered document in favors of the petitioner within a period of one week from the date of receipt of a copy of this order - No costs - In such circumstances merely because there is an order of attachment passed by a Civil Court, the same cannot be a ground to refuse to register the Memorandum of Deposit of Title Deeds - If any deposit of title deeds is created in respect of said property pursuant to right acquired by petitioner vide settlement deed it is always subject to further orders to be passed by the Civil Court petitioners case is that she acquired title by way of settlement deed much prior to the order of attachment - Petition is allowed

ORDER :

The petitioner seeks for a Mandamus to direct the 2nd respondent to return the assignment agreement dated 28.02.2007 taken on file in Document No.P59/2007 duly registered to the petitioner.

2. The case of the petitioner is as follows:

The petitioner Company had acquired debt due in the NPA account of another Company, viz., M/s. Ram Super Leather Ltd., from State Bank of Mauritius Ltd. It is stated that the petitioner had acquired the debts by way of assignment of debt along with right and title in the financial documents. The said assignment of debt was carried out by entering into an assignment agreement dated 28.02.20107. On execution of such assignment agreement, the petitioner had paid the stamp duty of Rs.1 lakh and also presented the said document for registration before the 2nd respondent on 06.07.2007. The 2nd respondent, on receipt of the said document, collected the registration fee of Rs.20,000/- and assigned Pending No.P59/2007. The registration process was completed on 06.07.2007 and the petitioner paid the required registration fee of Rs.20,000/- as well. However, the 2nd respondent, without registering the document is keeping the same pending only on the reason that there are some subsisting attachments of the properties referred to in the assignment agreement. Hence, the present writ petition is filed with the relief as stated supra.

3. A counter affidavit is filed by the 2nd respondent wherein it is stated as follows:

The assignment agreement was made in respect of the property situated in Kuniyamuthur Village in addition to the property lying within the jurisdiction of the 2nd respondent. Hence, the Joint Sub Registrar-II, Coimbatore, was requested to inform whether there is any impediment in registering the assignment deed comprising the properties of kuniyamuthur Village mentioned therein. The Joint Sub-Registrar-II, Coimbatore, informed that two attachments dated 10.09.2004 and 29.12.2004 made by the Regional Provident Fund Commissioner, Coimbatore against Kuniyamuthur Village properties, are subsisting. As the subsisting attachments are considered as impediment for registering the assignment deed, the document is kept pending for satisfaction or raising of attachments.

4. Learned counsel for the petitioner submitted that the 2nd respondent is not justified in refusing to register the document and release the same to the petitioner only on the reason that there are subsisting attachments against the properties referred to in the said document. In support of his contention the learned counsel relied on a recent decision of this Court made in W.P.No.10647/2017 dated 13.12.2018 made in Sundaram BNP Paribas Home Finance Limited vs. The Sub-Registrar, Neelankarai.

5. On the other hand, the learned Government Advocate appearing for the respondents reiterated the contentions raised in the counter affidavit.

6. Heard both sides.

7. The only question arises in this case for consideration is as to whether the 2nd respondent is justified in refusing to register the assignment deed on the ground that some of the subject matter properties of the assignment deed are under attachments as stated supra.

8. The above issue involved in this case is no more res integra in view of the fact that the very same issue was already considered by this Court and decided against the registering authority in a decision made in W.P.No.10647/2007 dated 13.10.2018. In fact, this Court, while passing the said order, followed the order passed in W.P.(MD).No.2632/2012 dated 13.03.2013, which in turn, followed the decision of the Apex Court reported in 1985 (2) SCC 167 (Balkrishan Gupta v. Swadeshi Polytex Limited). Paragraph Nos. 7 and 8 of the said order reads as follows:

7. The point for consideration in this writ petition is whether the respondent is entitled to refuse registration of the sale deed on the ground that the subject matter properties of the sale deed are under Court attachment. The very same issue was considered by this Court in

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