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IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.S.SUNDAR, P.DHANABAL
Dinakar Trading Company Represented by its Proprietor – Appellant
Versus
J.Sekar – Respondent
JUDGMENT :
S.S. SUNDAR, J.
The above Original Side Appeals have been preferred by M/s.Dinakar Trading Company, the 2nd defendant, and defendants 5 and 6, respectively, as against the judgment and decree of the learned Single Judge of this Court dated 04.10.2019 in C.S.No.1134 of 2008. While the Appeal in O.S.A.No.22 of 2020 is preferred by the 2nd defendant in the suit, the Appeal in O.S.A.No.25 of 2020 is preferred by defendants 5 and 6 in the suit.
2.The 1st respondent, as plaintiff, filed the suit in C.S.No.1134 of 2008 for the following reliefs :
“[a] for a declaration declaring that the sale deed dated 07/04/2005, registered as Document No. 1121 of 2005 in Book I in the office of the Sub Registrar, Mylapore, executed by the 2nd defendant and others in favour of the 3rd Defendant herein, in so far as it relates to the suit schedule mentioned property, as sham and nominal;
[b] for a declaration, declaring that the power of Attorney dated 18/02/2008, registered as document No. 325 of 2008 in Book IV in the office of the District Registrar, South Chennai, executed by the 3rd Defendant in favour of the 4th Defendant as null and void in so far as it relates to the suit schedule mentioned
Court held that transactions made during the subsistence of a mortgage are void under the SARFAESI Act; the auction purchaser's rights were upheld despite challenges to the validity of earlier transf....
Sales executed after taking possession under the SARFAESI Act are void, affirming the authority of civil courts in possession disputes involving third parties.
The main legal point established in the judgment is the limitation on civil court jurisdiction under Section 34 of the SARFAESI Act and the duty of the court to scrutinize allegations of fraud and co....
Application against measures to recover secured debts – Jurisdiction - Jurisdiction of Civil Court is not ousted. However, Civil Courts have to be extremely cautious while granting any interim order ....
A secured creditor retains rights over a property until actual possession is transferred, despite a sale certificate being issued to an auction buyer, as affirmed by the court.
A sale deed remains valid despite non-payment of the entire sale consideration if the intention to transfer ownership is evident.
Civil Courts have jurisdiction in SARFAESI Act matters only when the secured creditor has not initiated actions under the Act. Limitation laws apply strictly to such actions.
Mandatory compliance with procedural requirements under the SARFAESI Act is essential; failure to adhere prejudices borrowers' rights and invalidates auction proceedings.
The bank retains the right to recover debts through mortgaged properties even if the borrower sells the property to a third party, as established under the SARFAESI Act, 2002.
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