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IN THE HIGH COURT OF JUDICATURE AT MADRAS
D.KRISHNAKUMAR, P.B.BALAJI
Tamilnadu Mercantile Bank Ltd. – Appellant
Versus
Sub Registrar – Respondent
ORDER :
P.B. BALAJI, J.
The Petitioner Bank has sought issuance of a Writ of Mandamus, directing the Sub-Registrar, Sembakkam, to delete the property mentioned in the schedule to the Writ Petition from the Certificate of Encumbrance and to direct the 1st respondent to register the Sale Certificate dated 04.10.2023 issued by the petitioner Bank.
2 .We have heard Mr. V. Chandrasekaran, learned counsel for the writ Petitioner and Mr. Haja Naziruddin, learned Additional Advocate General, assisted by Mr.G.Nanmaran, learned Special Government Pleader for the 2nd respondent and Mr.M.Habeeb Rahman, learned Government Advocate for the 1st Respondent.
3. According to the learned counsel for the Petitioner Bank, the property which is set out by way of a separate schedule to the Writ Petition was mortgaged by one A.Seyathu, partner of M/s. Friends Telecom in favor of the Petitioner Bank on 12.11.2015, by an agreement of deposit of title deeds. This mortgage was created in respect of credit facilities availed by the partnership firm, M/s. Friends Telecom. The memorandum of deposit of title deeds was duly registered as Document No.12332 of 2015 on the file of Sub Registrar Office, Selayur as well. T
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.
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 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' rights under the SARFAESI Act take precedence over subsequent attachment orders, allowing for the registration of sale certificates.
An order of attachment cannot be a bar to register a document, and the sale of a subject property pending the order of attachment is void only as against the claims enforceable under the order of att....
Point of law: rights of a secured creditor to realise secured debts due and payable by sale of assets over which security interest is created, would have priority over all debts and Government dues i....
A mortgagee bank's sale certificate cannot be denied registration due to prior attachment orders, as secured creditors' rights under the SARFAESI Act prevail over tax attachment claims.
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