Subsequent attachments do not affect the mortgage rights of a property sold under the SARFAESI Act.

JUDGMENT

Dated this the 8^th day of January, 2026 The petitioner is filing this writ petition aggrieved by the inaction on the part of the 3^rd respondent in registering a Certificate of sale issued under Rule 9(6) of the Security Interest (Enforcement) Rules, 2002, on the ground that there are attachments over the property by the Munsiff and Sub-Court of Perumbavoor.

2. It is submitted that the petitioner bank, invoking the provisions of the SARFAESI Act , 2002 conducted an e-auction of a property having an extent of 13.06 Ares of land together with a commercial building therein in Re.Sy.No.473/10/3/2 and 473/10/2/2 in Chelamattom Village, Kunnathunadu Taluk; Ernakulam District, belonging to the 4^th respondent herein covered by Sale Deed No,5781 of 2005 dated 22.04.2005 of Perumbavoor SRO. The above property was given as security by way of equitable mortgage as early as on 09.05.2015, for the credit facilities availed by the 4^th respondent from the petitioner bank. Since the 4^th respondent failed to repay the amounts due to the bank, proceedings were initiated under the provisions of the SARFAESI Act and the above property was brought for sale, The sale was conducted on 30.10.2025, Exhibit P2 is the Sale Notice dated 03.10.2025, and issued by the bank fixing the reserve price of the property of Rs.2,42,00,000/-.

3. It is submitted that respondents 5 and 6 became successful bidders in the sale conducted. The sale was confirmed in favour of the 5^th and 6^th respondents for an amount of Rs.2,42,50,000/-. On receipt of the entire amount from the respondents 5 and 6, the possession of the above property was handed over to them and Ext.P3 Sale Certificate was also issued on 14.11.2025.

4. It is submitted that in order to get the Sale Certificate registered under the provisions of the Registration Act 1908, the same was presented before the 3^rd respondent on 08.12.2025 vide Token No.9574702. However, the 3^rd respondent refused to register Exhibit P3 Sale Certificate on the ground that attachments are subsisting in the property vide Ext.P4 rejection letter dated 8.12.2025. On a perusal of Ext.P5 the Encumbrance Certificate, it could be seen that an order of attachment for Rs.6,00,000/- was passed by the Munsiff Court, Perumbavoor in O.S.No.114/2022 on 07.04.2022 and another attachment for an amount of Rs.30,00,000/-was passed by the Sub Court, Perumbavoor in O.S,No.32/2023 on 22.06.2023. From the above facts, it is abundantly clear that the attachments seen in the Encumbrance Certificate are subsequent to the creation of mortgage and has no effect whatsoever, over the property mortgaged by the 4^th respondent in favour of the bank. Both the attachments were made subsequent to the mortgage and the same has no effect on the mortgage.

5. It is most respectfully submitted that the above attachments were also clearly mentioned in the Sale Notice as well as the Sale Certificate issued by the bank. The attachments effected subsequent to the mortgage created in favour of the bank do not affect the title and ownership of the auction purchaser over the subject property. Such attachments have no impact on the sale conducted under the provisions of the SARFAESI Act and the same ceases to have any effect, the moment the sale is confirmed by the bank in favour of the auction purchaser. It is submitted that the 4^th respondent created equitable mortgage over the property in favour of the bank as early as on 09.05.2015 as evidenced by Exhibit P1. Therefore, the attachments over the property as could be seen in Exhibit P5 Encumbrance Certificate is liable to be ignored and the Sale Certificate is liable to be registered as and when presented for registration.

6. This issue is covered by the judgment of a Full Bench of t