SHORT NOTE
MADRAS HIGH COURT
N. Paul Vasanthakumar and K. Ravichandra Baabu, JJ.
M/s. Veena Textiles Ltd. & Anr. —Petitioners
versus
The Authorised Officer & Anr. —Respondents
W.P. No.8761 of 2014 and M.P. Nos.2 and 3 of 2014
Decided on 1.8.2014

IMPORTANT POINT
Deed of assignment null and void, since same made in violation of S. 28(b) of Registration Act.

Headnote:Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002 — Section 14(3) — Order under — Writ petition against — HELD — Maintainable.

       Held: In view of the above referred categorical pronouncement made by the Hon’ble Supreme Court, it cannot be contended any more that the writ petition is not maintainable as against the order made Under Section 14(3) of the SARFASI Act. Therefore, we reject the objections raised by the first respondent with regard to the maintainability of the writ petition and hold that this writ petition is maintainable.

       (ii) Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002 — Section 14(3) — Proceedings under — Document registered outside Tamil Nadu — In contravention of provisions of S. 28 (a) of Registration Act shall be deemed null and void.

       Held: A perusal of the above said provision of law would show that the document registered outside the State of Tamil Nadu in contravention of the provisions of clause (a) of Section 28 of the Registration Act shall be deemed to be null and void. Therefore, there cannot be any doubt that the deed of assignment dated 25.5.2011 is deemed to be null and void, since the same was made in violation of Section 28(b) of the Registration Act. Consequently, the first respondent, having not empowered to act legally against the petitioners in pursuant to the said deed of assignment dated 25.5.2011, was not entitled to initiate the proceedings before the second respondent under the SARFAESI Act, which has resulted in passing the impugned order by the second respondent under Section 14(3) of the SARFAESI Act.

       Result: Petition allowed