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IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mr Justice N. ANAND VENKATESH
Canara Bank, Asset Recovery Management Branch – Appellant
Versus
Sub-Registrar, Kelamangalam – Respondent
| Table of Content |
|---|
| 1. issuance of writ of mandamus for registration. (Para 1) |
| 2. issuance of a writ for registration of sale certificate. (Para 2) |
| 3. details of the loan and mortgage transactions. (Para 3 , 4) |
| 4. details of the mortgage and properties involved. (Para 5 , 6 , 7 , 8) |
| 5. dispute over authority to sell mortgaged property. (Para 9 , 12) |
| 6. court's analysis on binding nature of sales. (Para 10 , 11 , 13 , 14) |
| 7. court orders registration of sale certificate. (Para 15) |
| 8. conclusion and order of the court. (Para 16) |
ORDER :
1. This writ petition has been filed for the issuance of a Writ of Mandamus directing the first respondent to register the sale certificate dated 26.9.2023 issued in favour of respondents 18 to 20, who are the auction purchasers.
2. Heard the learned counsel appearing for the petitioner bank, the learned Government Advocate appearing for the first respondent and the respective learned counsel appearing for the contesting respondents.
3. The case of the petitioner is as follows :
(i) The second respondent availed credit facilities to the tune of Rs.300 lakhs from the petitioner bank. In order to secure repayment of the credit facilities availed, the second respondent
A mortgagor cannot authorize the sale of mortgaged property without the consent of the mortgagee, protecting the mortgagee's rights under the Securitization and Reconstruction of Financial Assets and....
The unauthorized sale of mortgaged property is not binding on the mortgagee bank, allowing the registration of a sale certificate post-auction.
The unauthorized sale of mortgaged property by the mortgagor does not bind the mortgagee, allowing the mortgagee to enforce its rights and register the sale certificate.
A mortgagor cannot sell secured property without the mortgagee's consent, making such sales non-binding.
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.
The SARFAESI Act affirms secured creditors' priority over state debts, overturning any conflicting tax attachments regarding sold properties.
Writ court directs SARFAESI auction sale registration despite delays, relegates possession and property disputes to civil court.
The SARFAESI Act's provisions override civil court injunctions, allowing secured creditors to enforce their rights despite conflicting orders.
The main legal point established in the judgment is that attachment orders subsequent to the mortgage do not affect the rights of the secured creditor over the subject property, and sale certificates....
Secured creditors' rights under the SARFAESI Act take precedence over subsequent attachment orders, allowing for the registration of sale certificates.
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