The court affirmed that the enforcement agency's attachment orders were invalid due to failure to notify the new owner and established that registration of a sale certificate is unnecessary for property rights.

ORDER :

1. Heard Sri Mayur Reddy, learned Senior Counsel on behalf of Sri Saini Aravind, learned counsel for petitioner, Sri D. Narender Naik, learned Standing Counsel for Enforcement Directorate and Sri S.M. Moizuddin, party-in-person.

2. Petitioner-M/s Kraft Alloy Pvt. Ltd. filed this Writ Petition seeking three reliefs against Respondent Nos. 3 and 4 viz., Deputy Director, Enforcement Directorate, Hyderabad and the Sub-Registrar, District Registrar Officer, Ranga Reddy District. They are:

a) to declare the action of Respondents 2 and 3 in passing the attachment orders dated 26.08.2021 and 18.08.2022 as illegal and void in respect of petitioner’s property which was purchased under the SARFAESI Act prior to the said attachment orders;

b) quash the provisional and final attachment orders dated 26.08.2021 and 18.08.2022 relating to the lands mentioned as items 22 and 23 in the list of immovable properties covered by the attachment orders and declare all correspondence sent to the Sub-Registrar, Ranga Reddy in connection with these attachment orders as non-operative and void;

c) to direct the Sub-Registrar, RR District to register all deeds of sale and transaction documents relating to petitioner’s property without reference to or obstruction from the attachment orders dated 26.08.2021 and 18.08.2022.

3. The brief case of Petitioner is that:

M/s Aashi Realtors and M/s Neeharika Infrastructure Pvt Ltd. were the absolute owners of the land admeasuring Acs.4.07 gts. and Acs.4.00, totally Acs. 8-07 gts, in Survey No. 78, Hafeezpet Village, Serilingampally Mandal, RR District, Hyderabad. They availed Rs. 110 crores financial facility from M/s SREI Equipment Finance Ltd. and mortgaged the property in question in their favour. Since M/s Aashi Realtors defaulted in repayment, the Creditor-M/s SREI Equipment Finance Ltd., invoked the provisions of SARFAESI Act; loan accounts were declared as Non-Performing Assets (NPA) on 16.01.2019; thereafter, the Authorized Officer under the SARFAESI Act brought the property in question to public auction on 30.12.2019. Petitioner emerged as the successful bidder. After receiving the entire sale consideration, a sale certificate dated 14.01.2020 was issued in favour of petitioner in accordance with the SARFAESI Act, thus, petitioner has become the absolute owner and lawful possessor of the property in question with effect from the said date.

3.1. On issuance of Sale Certificate dated 14.01.2020, petitioner approached the Sub-Registrar concerned seeking registration of Sale Certificate, however, registration was denied on the ground that the Tahsildar stated that lands situated in Survey No. 78 of Hafeezpet are prohibited from registration under Section 22-A of the REGISTRATION ACT . Hence, petitioner filed Writ Petition No. 24348 of 2020, wherein this Court, by order dated 04.02.2021, directed the Sub-Registrar to register the documents submitted by petitioner. Since the said orders were not implemented, petitioner filed Contempt Case No. 262 of 2021.

3.2. It is stated, to circumvent the contempt proceedings, the State authorities preferred SLP No. 2844 of 2021 challenging the order of this Court dated 04.02.2021. The Hon'ble Supreme Court while admitting the SLP, had not granted any interim stay or interim suspension. Meantime, the Hon'ble Supreme Court in SLP No. 2844 of 2021 and other tagged SLPs filed by the State, by order dated 13.03.2023 granted leave and directed that the existing orders of status quo would continue to operate. Petitioner contends that no status quo was ordered in SLP and only a direction not to take coercive steps was ordered. Thereafter, on 13.03.2023, the contempt proceeding