JUDGMENT

(Dated this the 27^th day of January of 2026)

The petitioners are auction purchasers in an e-auction conducted by the State Bank of India. They were the successful bidders for a sale price of Rs.1,30,00,000/- and they had remitted the amount and Ext.P1 registered sale certificate is executed by the bank on 24.11.2022. The petitioners, after the registration of sale certificate, applied to the 1^st respondent for mutation of the property, to which Ext.P2 reply is sent stating that mutation cannot be effected as money due to the Government under sales tax and revenue recovery proceedings are pending and the State has priority over all debts. Petitioners, thereafter, applied for encumbrance certificate which is produced as Ext.P3 which shows that the sales tax dues are after the equitable creation of equitable mortgage with the 3^rd respondent bank on 11.05.2010. In such circumstances the petitioners approached this court to quash Ext.P2 and to direct respondent No.1 and 2 to remove the entries in the registers relating to encumbrance to subject property and to effect mutation.

2. The Government Pleader filed a counter affidavit, wherein it is contended that petitioners purchased