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2022 Supreme(Telangana) 603

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
MUMMINENI SUDHEER KUMAR, J.
M/s. Ashish Simran Exports Pvt. Ltd., rep.by its Director Ashish Kumar Ahuja - Petitioner
Versus
The State of Telangana, Rep.by its Principal Secretary, Registration Department and Others - Respondents
Writ Petition No.42907 Of 2022
Decided On : 30-12-2022

Advocates Appeared:
For the Petitioner: Mr. T.Bala Mohan Reddy.

Headnote:

Indian Stamps Act, 1899 – Registration Act, 1908 – Transfer of Property Act, 1882 – Registration – Properties – Power of Attorney – Held, There is no legal bar from executing a conveyance deed or any other document in respect of properties, which are subjected to mortgage – Provisions of Transfer of Property Act, 1882, permits such transfer subject to a condition that beneficiary under such documents is also bound by such mortgage created by his vendor – If a purchaser or a beneficiary document is willing to acquire rights subject to mortgage, it is always open for parties to approach concerned registering authority for executing documents in that regard – It is not part of duty of third respondent to look into such aspects – Therefore, action of third respondent herein in refusing to process documents in question presented for registration on ground that there is a mortgage in favour of banks is totally unsustainable and without any authority of law – Writ Petition allowed.

ORDER :

This Writ Petition is filed seeking a Writ of Mandamus to declare the action of the third respondent in not registering and releasing pending document Nos.1354, 1355, 1356 and 1357 of 2021 dated 27.11.2021, as illegal and arbitrary.

2. The petitioner herein who is the vendee-cum-agent under the pending documents, which are the subject matter of the present Writ Petition, got presented the said documents, namely Agreement of Sale-cum-General Power of Attorney with possession for registration before the third respondent after complying with the requirements of the Indian Stamps Act, 1899 and the Registration Act, 1908. The third respondent herein, having received the said documents for registration, kept the documents pending by assigning pending document numbers without processing and registering the same. Aggrieved by such action of the third respondent, the petitioner herein approached this Court by filing the present Writ Petition.

3. The third respondent filed counter affidavit giving reasons for not processing the documents, which reads as under:-

“It is submitted that, the Properties involved in the documents relating to Survey No.13 of Kondapur Village and previously purchased by Sri O. Kamal Prasad vide document No.2634 of 2015 dt.22.08.2015, 2636 of 2015 dt.22.08.2015, 2638 of 2015, dt.22.08.2015 and 2637 of 2015 dt.22.08.2015. Sri O.Kamal Prasad has availed loans by depositing the title deeds of the above properties vide Memorandum of Deposit of Title Deeds bearing No.5721 of 2019 with ICICI Bank and Document No.19359 of 2018 with Punjab National Bank.

In terms of C&IG. (R&S) instructions in Circular No.13450/2007 dated 21.07.2008 (Copy submitted) the Sub-Registrar is required to verify link documents and Encumbrance certificate before registration to avoid fraudulent registrations. Accordingly, when the Encumbrances were searched it was found that the properties were already under Mortgage in favour of the above Banks. The matter has been conveyed to the Vendor and he immediately submitted an undertaking o 27.11.2021 (Copy submitted) to get the Re-conveyance of Mortgage deeds executed by the concerned Banks and submit a copy to the R.O.”

From the above, it is seen that the third respondent kept the documents in question pending on the ground that the very subject properties, which are the subject matter of the pending documents were mortgaged in favour of ICICI Bank and Punjab National Bank under memorandum of deposit of title deeds vide document Nos.5721 of 2019 and 19359 of 2018 respectively and the same is noticed by the third respondent on verification of the Encumbrance Certificate and the link documents of the properties, which are the subject matter of pending documents. As the properties covered by the subject documents are mortgaged in favour of the banks referred to above, the Sub-Registrar tried to justify his action in keeping the documents pending without processing further. The third respondent placed reliance on a Circular bearing No.13450 of 2007 dated 21.07.2008 issued by the Commissioner and Inspector General (Registration & Stamps) wherein the Sub-Registrars are required to verify the link documents and Encumbrance Certificate before carrying out any registration to avoid fraudulent registrations. No doubt, the said circular was issued but whether such a circular issued by the Commissioner and Inspector General of Registration & Stamps is having any authority to issue or not is a matter that falls for consideration of this Court.

4. A learned Single Judge of the erstwhile High Court of Andhra Pradesh (Hon’ble Sri Justice Sri N.V.Ramana, as he then was) considered this aspect of the matter in detail in the case of Dr. Yadla Ramesh Naidu v. The Sub-Registrar, Sabbavaram, Visakhapatnam District & Others, 2009 (1) ALD 337 and examined in detail the scope and ambit of the powers of the Sub-Registrars while processing a document for registration, wherein it was held as under:

“Chapter XII of the R

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