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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
Mr.Justice V.Lakshminarayanan, J
Tamil Selvan – Appellant
Versus
Sub Registrar, Office of the Sub Registrar, Rajapalayam – Respondent
ORDER :
The writ petitioner is a SARFAESI auction purchaser. He seeks for a writ of mandamus to raise the attachment over the property situated at S.F.Nos.667/1B, 3A, 3B, 3C, 697/1, 697/2, 700/1A, 6, 700/1B, to an extent of 7.21 acres of Samusigapuram Village, Rajapalayam Taluk, Virudhunagar District.
2. The properties had been mortgaged by the previous owner with the State Bank of India. The mortgagor defaulted in payments of amounts. This constrained the second respondent to invoke the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as “SARFAESI Act”) and the Rules made thereunder. The property was brought for sale by e-auction on 24.08.2022. The writ petitioner participated and he was successful. The second respondent Bank also issued a sale certificate to that effect. The petitioner presented the sale certificate for registration with the first respondent. The first respondent demanded the payment of 7% as stamp duty and 4% as registration charges. Aggrieved by the same, the petitioner filed W.P(MD) No.1033 of 2023. The said writ petition was allowed. It is pleaded by the petitioner th
The auction purchaser's title prevails over subsequent attachments, as the attachment occurred after the auction sale, reaffirming the priority of security interests under Section 26(E) of the SARFAE....
The main legal point established in the judgment is that the charge created under the SARFAESI Act takes priority over the State's dues, as per Section 26E of the Act.
A security interest registered with CERSAI under Section 26E of the SARFAESI Act grants the secured creditor priority over all other debts, including subsequent statutory dues like those under the EP....
The Employees' Provident Fund dues have priority over other claims, including mortgages, as confirmed by law, which the court upheld when dismissing the writ petition.
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 ....
Subsequent attachments do not affect the mortgage rights of a property sold under the SARFAESI Act.
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 ....
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