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IN THE HIGH COURT OF JUDICATURE AT MADRAS
MR JUSTICE N. ANAND VENKATESH, J
Union Bank Of India, Stressed Asset Management Branch-Chennai – Appellant
Versus
Sub Registrar, Office Of The Sub-Registrar, 2/97A, Mayilam Pondi Road, Vanur, Villupuram – Respondent
ORDER :
(N. ANAND VENKATESH, J.)
This writ petition has been filed challenging the impugned communication dated 29.11.2024 of the 1st respondent and for a consequential direction to the 1st respondent to register the Sale Certificate dated 27.09.2024 issued by the petitioner in favour of the 3rd respondent without putting against the petitioner the endorsement made towards the attachment of the property by the Sales Tax Department.
2.Heard Ms.M.Akshayaa, learned counsel appearing on behalf of the petitioner and Mr.B.Vijay, learned Additional Government Pleader appearing on behalf of respondents 1 and 2.
3.The case of the petitioner is that the petitioner Bank had advanced certain credit facilities in favour of Sri Trirumurugan Agencies. Towards the said loan, a mortage by deposit of title deeds was created in favour of bank. The borrower failed to service the loan and hence, was classified as a non- performing assets. Proceedings were imitated under the SARFAESI Act and the property which was mortgaged was brought for auction sale. The 3rd respondent was the highest bidder and the Sale Certificate dated 27.09.2024 was issued in his favour. When this Sale Certificate was presented for r
Section 26-E of the SARFAESI Act prioritizes secured creditors over tax dues, establishing that tax attachments are subordinate to secured interests.
The main legal point established in the judgment is that the claim of the secured creditor under the SARFAESI Act has priority over other debts and attachments, and attachments made by other parties ....
Secured creditors have priority over debts, permitting registration of sale certificates despite existing civil court attachments, with purchasers taking the property subject to said attachments.
Section 26(E) of the SARFAESI Act and Section 31B of Act 51 of 1993, there cannot be any doubt that the rights of a secured creditor to realize the debts due and payable by sale of assets over which ....
The SARFAESI Act affirms secured creditors' priority over state debts, overturning any conflicting tax attachments regarding sold properties.
Secured creditors under SARFAESI Act have priority over all other debts, including tax attachments, affirming the necessity of registering Sale Certificates in favor of auction purchasers.
Priority of secured creditors established over government tax dues based on statutory interpretations of the SARFAESI Act, affirming the rights of banks to recover dues first.
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