Back
IN THE HIGH COURT OF MADHYA PRADESH AT GWALIOR
ANAND PATHAK, HIRDESH, JJ.
Capri Global Housing Finance Limited - Appellant
Vs.
The State Of Madhya Pradesh & Ors. - Respondent
Writ Petition No. 42390 of 2025
Decided On : 08-04-2026
(1) Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 -- Ss. 13(4) and 14 -- registration of sale certificate issued in auction process -- possession already taken by secured creditor from borrower -- resorting to proceeding u/s. 14 not required -- proceeding u/s. 14 is one of the recourses available to secured creditor -- creditor can take possession of secured assets even if he did not resort to remedy u/s. 14 -- registering authority cannot decline to register the document on this pretext. (2013) 9 SCC 620 followed. 2026 Supreme (Online) (MP) 1704 and 2018 (2) JLJ 585 = (2018) 3 MPLJ 615 relied on. [Paras 10 & 11
(2) Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 -- Ss. 13(4), 13(6) and 14 -- Security Interest (Enforcement) Rules, 2002 -- R. 9(6) -- Registration Act, 1908 -- Ss. 89(4) and 34(3) -- Stamp Act, 1899 -- Schedule I, Arts. 18 and 23 -- M. P. Registration Rules, 1939 -- Rr. 19(x)(i) and 35(m) -- registration of sale certificate issued in auction process -- requirement of mutation in revenue record before transferring secured asset to auction purchaser -- as per S. 13(6) of SARFAESI Act, upon transfer of secured asset, transferee/auction purchaser gets all rights related to such property/secured asset from secured creditor as if transfer is done by owner (borrower herein) -- this transaction is validated by law -- secured creditor not required to get name changed (mutation) in revenue record before transferring the same to auction purchaser -- there is no condition precedent of secured creditor getting its name mutated in revenue record -- once sale certificate is issued under R. 9(6) of Rules of 2002, it is the duty of registering authority to keep it in record -- if auction purchaser wants to get it registered then authority is duty-bound to register the same on basis of sale certificate issued by secured creditor -- registering authority may verify factum of issuance of sale certificate from office of authorized officer/secured creditor and identity of executant just to avoid forgery or fabrication of document or to avoid any fraud based upon forgery -- registering authority to proceed as per law regarding registration. 2024 SCC Online SC 3372 and (2026) 1 SCC 475 followed. [Paras 18 & 20 to 22
(3) Mutation -- revenue entry is presumptive in nature (rebuttable presumption) -- raises presumption of ownership but does not confer ownership -- it is only for fiscal/revenue purpose etc. [Para 20
¼1½ foÙkh; vkfLr;ksa dk çfrHkwfrdj.k vkSj iquxZBu rFkk çfrHkwfr fgr dk çorZu vf/kfu;e] 2002 & /kkjk 13¼4½ rFkk 14 & uhykeh çfØ;k esa tkjh fd, x, foØ; çek.ki= dk jftLVªhdj.k & çfrHkwr ysunkj m/kkj ysus okys ls dCtk ys pqdk & /kkjk 14 ds v/khu dk;Zokgh dk vkJ; ysuk vko';d ugha & /kkjk 14 ds v/khu dk;Zokgh çfrHkwr ysunkj dks miyC/k mik;ksa esa ls ,d gS & ysunkj us /kkjk 14 ds v/khu mipkj dk vkJ; ugha fy;k gks rc Hkh og çfrHkwr vkfLr;ksa dk dCtk ys ldrk gS & jftLVªhdj.k çkf/kdkjh bl cgkus nLrkost jftLVªh—r djus ls bUdkj ugha dj ldrkA ¼2013½9 ,llhlh 620 vuqlfjrA 2026 lqçhe ¼v‚uykbu½ ¼,eih½ 1704 rFkk 2018 ¼2½ ts,yts 585 ¾ ¼2018½3 ,eih,yts 615 voyafcrA ¼iSjk 10 ,oa 11
¼2½ foÙkh; vkfLr;ksa dk çfrHkwfrdj.k vkSj iquxZBu rFkk çfrHkwfr fgr dk çorZu vf/kfu;e] 2002 & /kkjk 13¼4½] 13¼6½ rFkk 14 & çfrHkwfr fgr ¼çorZu½ fu;e] 2002 & fu- 9¼6½ & jftLVªhdj.k vf/kfu;e] 1908 & /kkjk 89¼4½ rFkk 34¼3½ & LVkai vf/kfu;e] 1899 & vuqlwph 1- vuq- 18 rFkk 23 & e-ç- jftLVªhdj.k fu;e] 1939 & fu- 19¼Hk½¼,d½ rFkk 35¼M+½ & uhykeh çfØ;k esa tkjh fd, x, foØ; çek.ki= dk jftLVªhdj.k & çfrHkwr vkfLr uhyke Øsrk dks varfjr djus ds iwoZ jktLo vfHkys[k esa ukekarj.k dh vis{kk & ljQslh vf/kfu;e dh /kkjk 13¼6½ ds vuqlkj] çfrHkwr vkfLr dk varj.k gksus ij varfjrh@uhyke Øsrk dks çfrHkwr ysunkj ls ml laifÙk çfrHkwr vkfLr ls lacaf/kr leLr vf/kdkj mlh Hkk¡fr çkIr gks tkrs gSa tSls fd varj.k Lokeh ¼,rfLeu~ m/kkj ysus okys½ }kjk fd;k x;k gks & ;g laO;ogkj fof/k }kjk ekU;rkçkIr gS & bls uhyke Øsrk dks varfjr djus ds iwoZ çfrHkwr ysunkj }kjk jktLo vfHkys[k esa uke ifjorZu ¼ukekarj.k½ djk;k tkuk visf{kr ugha & çfrHkwr ysunkj }kjk jktLo vfHkys[k esa viuk ukekarj.k djk, tkus dh dksbZ iqjksHkkO; 'krZ ugha & lu~ 2002 ds fu;eksa ds fu- 9¼6½ ds v/khu foØ; çek.ki= tkjh dj fn, tkus ij mls vfHkys[k esa j[kuk jftLVªhdj.k çkf/kdkjh dk drZO; gS & ;fn uhyke Øsrk mls jftLVªh—r djkuk pkgrk gS rks çkf/kdkjh mls çfrHkwr ysunkj }kjk tkjh fd, x, foØ; çek.ki= ds vk/kkj ij jftLVªh—r djus ds fy, drZO;kc) gS & jftLVªhdj.k çkf/kdkjh dsoy nLrkost dwVjfpr gksus ;k x<+k x;k gksus ls cpus ds fy, vFkok dwVjpuk ij vkèkkfjr fdlh Hkh diV ls cpus ds fy, çkf/k—r vf/kdkjh@çfrHkwr ysunkj ds dk;kZy; ls foØ; çek.ki= tkjh fd, tkus ds rF; dk rFkk fu"iknd dh 'kuk[r dk lR;kiu dj ldrk gS & jftLVªhdj.k çkf/kdkjh jftLVªhdj.k ls lacaf/kr fofèk ds vuqlkj dk;Zokgh djsA 2024 ,llhlh v‚uykbu ,llh 3372 rFkk ¼2026½1 ,llhlh 475 vuqlfjrA ¼iSjk 18 ,oa 20 ls 22
¼3½ ukekarj.k & jktLo çfof"V dh ç—fr mi/kkj.kkRed gksrh gS ¼[kaMuh; mi/kkj.kk½ & LokfeRo dh mi/kkj.kk mRiUu djrh gS ijarq LokfeRo çnku ugha djrh & og foÙkh;@jktLo ç;kstu vkfn ds fy, gh gksrh gSA ¼iSjk 20
| Table of Content |
|---|
| 1. factual background leading to the writ petition regarding the refusal to register a sale certificate issued under sarfaesi. (Para 1 , 2 , 3) |
| 2. arguments concerning the interplay between sarfaesi act powers, registration act requirements, and the necessity of mutation for valid registration. (Para 4 , 5 , 6 , 7) |
| 3. defining the legal questions: is section 14 resort mandatory for registration, and is mutation a condition precedent for registration? (Para 8 , 9) |
| 4. section 14 of sarfaesi act is not a mandatory prerequisite for taking possession if peaceable possession is secured. (Para 10 , 11 , 12 , 13 , 14 , 15) |
| 5. sale certificates are not compulsorily registrable; mutation is not a condition precedent for registering sale documents. (Para 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23) |
ORDER :
Per: Justice Anand Pathak
1. The present petition is preferred by the petitioner being a financial institution, aggrieved by inaction on part of respondents whereby they are not permitting sale certificate issued by the authorized officer of petitioner company to get it registered.
2. Petitioner being a secured creditor extended the loan facility to the borrower and when failed to pay due amount, loan account of borrower was declared as Non Performing Assets (NPA) on 30-04-2024 and accordingly a demand notice dated 10-05-2024 under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as “the SARFAESI Act”) was sent to the borrower. Thereafter possession as secured assets was taken on 22-11-2024 by the authorized officer and the petitioner company exercised the power conferred under Section 13(4) of the SARFAESI Act.
3. After taking possession, petitioner company proceeded for e-auction. After some procedural formalities, finally auction completed in 4th auction in June, 2025 and bid was confirmed in the name of respondent No.5 and sale certificate is also issued in his favour on 30-06-2025. Now registration process of sale certificate was to be completed, however Registrar, District Guna (respondent No.3 herein) is not causing registration of said sale certificate, therefore, this petition was preferred.
4. It is the submission of learned counsel for the petitioner that after following due process, possession of the secured assets was taken by the petitioner company under Section 13(4) the SARFAESI Act. Assistance of District Authorities for taking possession is only required under Section 14 of the SARFAESI Act when secured creditor faces any kind of resistance from the borrower(s) or any other person(s). In the present case, mortgaged property was vacated hence peaceful possession was taken. Sale certificate is issued under rule 9 (8) of the Security Interest (Enforcement) Rules, 2002 (hereinafter referred to as “the Rules of 2002”).
5. It is further submitted that Section 89(4) of the Registration Act, 1908 (hereinafter referred to as “the Act of 1908”) provides provision to maintain record in books by the Registrar. However, provisions of article 18 and 23 of Schedule -I of Indian Stamp Act, 1899 provides provision for registration of sale certificate. According to learned counsel for the petitioner, letter dated 29-08-2025 of Senior Sub Registrar is illegal.
6. Counsel for the respondents/State opposed the prayer and submits that registration of sale certificate can only be done by fulfilling provisions of Registration Act and Madhya Pradesh Registration Rules, 1939 (hereinafter referred to as “the Rules of 1939”). As per provisions of Section 34(3)(a) of the Act of 1908, it is the duty of the Registrar to enquire whether or not such document was executed by the persons by whom it purports to have been executed. Section 34(3)(b) of the Act of 1908 provides power to the Registrar to satisfy himself as to the identity of the persons appearing before him and alleging that they have executed the document.
7. As per the provisions of Rules of 193
AI
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
