The secured creditor's rights under the SARFAESI Act are not overridden by civil court attachment orders, allowing for the registration of sale certificates regardless of such attachments.

ORDER :

1. Heard learned counsel for the petitioner and learned Assistant Government Pleader for Stamps and Registration appearing for the respondent Nos.1 to 5 and perused the material on record.

2. The personal notice sent to the respondent Nos.6 to 9 was returned with an endorsement that ‘addressee left without instructions’ and learned Counsel for the petitioner filed return covers along with proof of service. In view of the same, service of notice sent to the respondent Nos.6 to 9 deemed to be served.

3. Learned Counsel for the petitioner submits that the petitioner is questioning the action of the respondent No.5 in not deleting the subject property situated as all that the Flat No.G-17, in ground Floor of “Venkatadhri Heights” Block-E, admeasuring 1516 square feet of plinth area (including common areas) and car parking, with undivided share of land admeasuring 42 Square Yards or 35.11 Square Meters, out of total admeasuring Ac.4.31 guntas together with all the building and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth both present and future and all other improvements thereon in Survey Nos.754 and 755, situated at Korremula Village, Chowdariguda Gram Panchyat, Ghatkesar Mandal, Medchal-Malkajigiri District, Telangana, under S.R.O., Narapally, from the prohibitory list as illegal and arbitrary and consequently direct the respondent No.5 to delete the subject property from the prohibitory list and register the sale deed in favour of the successful bidder.

4. Learned counsel for the petitioner further submits that the respondent Nos.6 and 7 have obtained mortgage loan of an amount of Rs.46,50,000/- vide Account No.13957600005926 Sanction Order dated 20.01.2023 from the petitioner Company by mortgaging the subject house property of the respondent No.6 by way of registered Memorandum of Deposit of Title Deed vide Doc.No.778/2023 dated 24.01.2023 registered in the office of the Sub-Registrar, Narapally.

5. Learned counsel for the petitioner further submits that in view of default in payment, the petitioner- Company initiated proceedings under provisions of Section 14 of SARFAESI Act and took over the possession of the property and later the petitioner- Company brought the mortgaged property for auction by way of paper publication for possession notice on 27.10.2023 and issued notice for auction. As the subject property is reflected in prohibitory list of the Sub-Registrar, Narapally, the interested buyers did not participate in the auction and withdrawn from auction. He further submits that the respondent No.8 filed O.S.No.301 of 2023 before the XI Additional Chief Judge, City Civil Court, Hyderabad, arraying the respondent Nos.6 and 9 herein as defendants therein for recovery of an amount of Rs.80,00,000/- and the respondent No.8 herein also filed I.A.No.1412 of 2023 in the said suit and the XI Additional Chief Judge, City Civil Court, Hyderabad, has allowed the attachment prayed for and issued a Warrant of Attachment before Judgment on 20.07.2023 in the said I.A.No.1412 of 2023 attaching the three properties including the property mortgaged by the respondent No.6 herein and pursuant the said orders, the subject mortgaged property was incorporated in the prohibitory list.

6. Learned counsel for the petitioner further submits that the action of respondent No.5 is contrary to the Orders passed by this Court in City Union Bank Limited Vs. Sub Registrar, Peddapalli and Others , 2018 (5) ALT 279 and the same is followed by another Division Bench of this Court in W.P.No.38