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2023 Supreme(Mad) 2090

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, J.
Vasanthi – Appellant
Versus
The District Registrar, O/o. District Registrar, Cheyyar, Thiruvannamalai District & Others – Respondents
WP No. 11506 of 2023 & WMP No. 11396 of 2023
Decided On : 03-07-2023

Advocates appeared:
For the Petitioner:G. Pavendhan, Advocate. For the Respondents:R1 & R2, C. Jayaprakash, Government Advocate, R3, No Appearance.

The absence of an interim order in a civil suit does not preclude the registration of a Sale Deed.

Headnote:

Registration Act - Sale Deed - Section 53, Section 56, Section 57, Section 54 of the Transfer of Property Act - The court discussed the legal provisions related to fraudulent transfer, marshalling by subsequent purchaser, provision by court for encumbrances and sale freed therefrom, and the definition of sale under the Transfer of Property Act. The court emphasized that the absence of an interim order in a civil suit does not preclude the registration of a Sale Deed, and directed the second respondent to proceed with the registration of the Sale Deed presented by the petitioner.

Fact of the Case:

The petitioner sought registration of a Sale Deed, which was rejected by the second respondent due to a pending civil suit between the petitioner and the third respondent. The Sub Registrar refused to register the Sale Deed citing the pending civil suit.

Finding of the Court:

The court found that the absence of an interim order in the civil suit did not preclude the registration of the Sale Deed, and directed the second respondent to proceed with the registration of the Sale Deed presented by the petitioner.

Issues: Dispute over registration of Sale Deed due to pending civil suit, refusal of Sub Registrar to register the Sale Deed.

Ratio Decidendi: The absence of an interim order in a civil suit does not preclude the registration of a Sale Deed.

Final Decision: The order rejecting the Sale Deed for registration was quashed, and the second respondent was directed to proceed with the registration of the Sale Deed presented by the petitioner.

JUDGMENT

(Prayer: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorarified Mandamus, calling for the connected records relating to the order in Na.Ka.No.07/2022 dated 13.01.2022 passed by the second respondent and quash the same and consequently direct the second respondent to entertain the petitioner''s return Sale Deed document No.S01LANDVV202102259320820 for registration and consider the petitioner''s representation dated 09.11.2022 pending on the file of the first respondent.)

The order of rejection dated 13.01.2022 passed by the second respondent rejecting the Deed of Sale presented by the petitioner for registration, is under challenge in the present writ petition.

2. The petitioner states that she is the absolute owner of the property, more fully described in the present writ petition. However, there is a dispute exist between the petitioner and the third respondent, who is none other than the husband of the writ petitioner and a civil dispute in OS No.17 of 2021 is pending.

3. Since the civil suit between the parties are pending, the Sub Registrar refused to register the Sale Deed presented by the petitioner for registration.

4. The learned counsel for the petitioner states that there is no interim order in the civil suit. Thus the Sub Registrar ought to have registered the documents.

5. The learned Government Advocate appearing on behalf of the respondents 1 and 2 raised an objection by stating that the Sub Registrar is also a party to the suit proceedings and therefore, the impugned order is in consonance with the provisions of the Act.

6. Pertinently, there is no interim order of prohibition for registering any document in respect of the subject property involved in the suit proceedings.

7. The mere fact that the Sub Registrar is a party in the suit would not preclude the persons from registering the document, if such documents are otherwise presented in accordance with the provisions of the Registration Act.

8. The Registering Authority cannot raise an objection with reference to the civil suit pending in the absence of any interim order in force from the Competent Court of Law.

9. The legal position in this regard elaborately considered by the Division Bench of this Court in the case of N.Ramayee vs. Sub Registrar [2020 (6) CTC 697], wherein the Hon''ble Division Bench of this Court in paragraphs 37 to 40 observed as under:-

“37. It is also pertinent to note that even if transfer is made during a pending suit, such transfer is not void but is subject to the result of the suit. Section 53 of the Transfer of Property Act, deals with fraudulent transfer. Even such fraudulent transfer is made with intent to defeat or delay the creditors of the transferor shall be voidable at the option of any creditor so defeated or delayed. Even in such cases the rights of transferee in good faith and for consideration is protected.

38. Section 56 of the Transfer of Property Act deals with marshalling by subsequent purchaser. The above provision also makes it clear that when the owner of two or more properties mortgages them to one person and then sells one or more of the properties to another person, the buyer is in the absence of a contract to the contrary, entitled to have the mortgage-debt satisfied out of the property or properties not sold to him, so far as the same will extend, but not so as to prejudice the rights of the mortgagee or persons claiming under him or of any other person who has for consideration acquired an interest in any of the properties. The above provision also makes it clear that though there were mortgages already created there is no bar for subsequent transfer of the property. But subsequent transfer is subject to the mortgage earlier created.

39. Section 57 of the Transfer of Property Act deals with the Provision by Court for encumbrances and sale freed therefrom. The Section also makes it clear that even the properties already encumbere

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