The attachment on secured property can be contested under specific provisions while maintaining lawful recovery procedures.

JUDGMENT

(Dated this the 20th day of February, 2026)

The petitioner Company acquired 38.62 ares of property in Kudappanakunnu Village through an e-auction conducted by M/s. Indiabulls Housing Finance Ltd., following the 2^nd respondent’s loan default. Indiabulls held a prior equitable mortgage created when the property was unencumbered. However, the property is now subject to an attachment order (Ext.P4) for Rs.12,24,44,314/- initiated by the 1^st respondent. The petitioner claims priority of the secured creditor under Section 26E of the SARFAESI Act and Section 31B of the RDBFI Act , contending that the attachment is non-binding and prevents registration and mutation of the property. The petitioner filed this writ petition for the following reliefs: i. To issue a writ in the nature of Certiorari or any other writ or order quashing Exhibit P4 proceedings of the 3rd respondent to the extent imposing a charge, attachment or restriction in alienation of the property having an extent of 38.62 Ares in Re-Survey Nos. 447/16-1, 447/15, 447/24, 447/14, 447/10, 448/15, 447/30, 447/17 and 448/28 of Kudappanakunnu Village detailed in Exhibit P1 sale certificate.

ii. To issue a writ in the nature of Certiorari or any other writ or order directing Respondent 3, 4 and 5 to remove or efface the entries in their registers relating to the attachment made over the property having an extent of 38.62 Ares in Re-Survey Nos. 447/16-1, 447/15, 447/24, 447/14, 447/10, 448/15, 447/30, 447/17 and 448/28 of Kudappanakunnu Village detailed in Exhibit P1 sale certificate towards an amount of Rs. 12,24,44,314/- in favour of Kerala State Industrial Development Corporation.

iii. To issue a writ in the nature of mandamus directing the

4th respondent to issue fresh encumbrance certificate to the petitioner for the property covered by Exhibit P1 Sale Certificate, without the said order of attachment for an amount of Rs. 12,24,44,314/- in favour of the 1st respondent.

iv. This Honourable Court may be pleased to dispense with filing of the English translation of vernacular documents as per order dated 04.08.2022 And v. To grant such other appropriate reliefs to the petitioner as this Honourable Court may deem fit and proper in the fact and circumstances of this case.

2. The 1^st respondent in the counter affidavit submits that KSIC, a Government Company owned by the Government of Kerala, had granted an equipment loan of Rs.1250 lakhs to M/s. Solar Offset Printers (P) Ltd., secured by charges over machinery, assets, collateral property, and personal guarantees. The company defaulted in repayment after availing the loan, and consequently, revenue recovery proceedings were initiated and attachment orders were issued. A substantial amount remains outstanding as on 31.12.2025. Being the guarantor, the 2^nd respondent is liable to discharge the dues, and KSIDC is legally entitled to proceed against the secured properties. The recovery actions are lawful, and without payment of the dues, the attachments cannot be withdrawn; hence, the petitioner is not entitled to any relief and the writ petition is liable to be dismissed with costs.

3. The attachment entered upon by the KSIC is found liable to be deleted. Therefore, there will be a direction to the 4^th resondent to issue fresh encumbrance certificate to the petitioner for the property covered by Ext.P1 sale certificate, after effacing the said entry of attachment within two weeks from the date of receipt of a copy of this judgment. The Kerala State Industrial Corporation Ltd. is permitted to proceed against any other property other than the mortgaged property belonging to the defaulter for recovery of amount due in accordance with law.

The writ petition is disposed of as above.

Sd/-