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IN THE HIGH COURT OF JUDICATURE AT MADRAS
D.KRISHNAKUMAR, P.B.BALAJI
Tamilnad Mercantile Bank – Appellant
Versus
Sub Registrar, Joint 1, Sub Registrar Office, Salem East – Respondent
ORDER :
P.B. BALAJI, J.
This Writ petition is preferred by the Petitioner Bank, a secured creditor seeking a direction to register the sale certificate in favour of the auction purchaser notwithstanding the attachment of the learned Additional District Judge, District Court No. I, Salem, dated 15.03.2024 which is subsequent to the registration of mortgage in favour of the petitioner bank on 30.11.2016 and registration under Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) dated 07.09.2023.
2. We have heard Mr.V.Chandrashekaran, learned counsel for the writ petitioner and Mr.K.Karthik Jagannath, learned Government Advocate for the first respondent and Mr.L.Sivakumar, learned counsel for the second respondent.
3. According to the learned counsel for the petitioner, the petitioner Bank had obtained a mortgage by way of memorandum of deposit of title deeds on 30.11.2016 from one Mr.P.Nathan, sole proprietor, M/s New Krishna Traders, towards credit facilities availed by executing the said Memorandum of Deposit of Title Deeds dated 30.11.2016, which was registered as Document No.4290 of 2016 on the file of the Sub Registrar Office, Joint I, Sale
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.
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.
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 ....
Secured creditors' rights under the SARFAESI Act take precedence over subsequent attachment orders, allowing for the registration of sale certificates.
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 ....
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....
Creditor rights under the SARFAESI Act allow registration of sale certificates despite existing court attachments when they arise post-mortgage.
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