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IN THE HIGH COURT OF JUDICATURE AT MADRAS
N.ANAND VENKATESH
Canara Bank, Asset Recovery, Management Branch rep.by its Senior Manager – Appellant
Versus
Sub-Registrar, Kelamangalam – Respondent
| Table of Content |
|---|
| 1. factual background surrounding the loan and mortgage. (Para 1 , 3 , 4 , 5) |
| 2. details on partial mortgage discharge and retained properties. (Para 6 , 7 , 8) |
| 3. arguments regarding unauthorized sale by the second respondent. (Para 9 , 10 , 12) |
| 4. court's observations on binding nature of sales and registration. (Para 11 , 13 , 14) |
| 5. final ruling in favor of the petitioner bank to register the sale certificate. (Para 15 , 16) |
ORDER :
N.Anand Venkatesh, J.
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 had offered to give, as a collateral security, the immovabl
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.
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.
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' 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 attachment orders subsequent to the mortgage do not affect the rights of the secured creditor over the subject property, and sale certificates....
The SARFAESI Act's provisions override civil court injunctions, allowing secured creditors to enforce their rights despite conflicting orders.
Writ court directs SARFAESI auction sale registration despite delays, relegates possession and property disputes to civil court.
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