A secured creditor under the SARFAESI Act has priority over subsequent non-statutory attachments, but the High Court cannot efface attachments ordered by a civil court, which requires an application to be made before the respective civil court.

JUDGMENT

Dated this the 20^th day of May, 2026 The petitioner is a Co-operative Bank and it has sanctioned a cash credit facility of Rs.2 Crores to the 5^th respondent from its Perinthalmanna main branch, on the basis of an equitable mortgage created by him in favour of the bank over three items of immovable properties. When the loan account became irregular, the bank initiated proceedings under the SARFAESI Act and sold one item of property having an extent of 15.75 cents in Survey No.91/7 in Perinthalmanna Village to the 6^th respondent. Thereafter, the bank issued Ext.P3 sale certificate in favour of the 6^th respondent on its payment of the entire bid amount. Subsequently, when Ext.P3 sale certificate was presented for registration before the 1^st respondent after remitting the requisite stamp duty and registration fees, he refused to register the document on the ground that there are two attachments on the property which are reflected in the encumbrance certificate. One of the attachments recorded is as per an order passed by the Munsiff Court, Ottappalam in O.S.No.237 of 2018 and the other attachment is seen made on the orders of the 4^th respondent. Since the attachments made were only after the creation of the equitable mortgage in favour of the bank, the petitioner approached this Court by filing this writ petition seeking the following reliefs:

“i) Issue a writ of mandamus or any other appropriate writ, order or direction directing the 1^st and 2^nd respondents to efface the attachments dated 27.03.2019 of the Honourable Munsiff Court Ottapalam and that of the 4^th respondent Special Deputy Tahsildar (RR), KSFE, Palakkad dated 29.10.2025 as reflected in Exhibit P5, encumbrance certificate from the Revenue Records as the same are subsequent to the equitable mortgage created in favour of the petitioner Bank.

ii) Issue a writ of mandamus or any other appropriate writ, order or direction directing the 1st respondent, Sub Registrar, to register Exhibit P3 Sale Certificate dehors the attachments shown in Exhibit P5, encumbrance certificate.

iii) Declare that the attachments reflected in Exhibit P5, encumbrance certificate which are made subsequent to the creation of equitable mortgage in favour of the petitioner Bank, are non est and do not affect the registration of Exhibit P3 Sale Certificate issued under the SARFAESI Act.”

2. Heard the learned counsel for the petitioner, the learned Government Pleader appearing for respondents 1 and 2, the learned Standing Counsel for respondents 3 and 4 and the learned counsel for respondents 6 to 8.

3. The learned counsel for the petitioner submitted that even though both the attachments reflected in the encumbrance certificate relate to the period after creation of the equitable mortgage, the petitioner is not pressing the relief relating to effacement of attachment effected as per orders passed by the civil court. She submitted that, as regards the attachment made by the

4^th respondent, the same has been effected only on 29.10.2025, much after the deposit of title deeds on 26.07.2016. Hence, she prayed that a direction may be issued to respondents 1 and 2 to efface the attachment recorded on behalf of the 4^th respondent and also to register Ext.P3 sale certificate by including the attachment from the civil court.

4. The learned Standing Counsel appearing for respondents 3 and 4 submitted that the attachment has been effected by the KSFE only on 29.10.2025, much after the creation of the equitable mortgage.

5. The learned Government Pleader, on instructions, submitted that the petitioner has to approach the civil court in order to efface the attachment effected through the orders of the civil court and th