SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

2024 Supreme(Online)(MAD) 6900

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 01.02.2024 CORAM:

THE HON'BLE MRS.JUSTICE.N.MALA W.P.No.22710 of 2023 and WMP.No.22159 of 2023 Lord's & Partners Property Management Service Pvt. Ltd., (Formerly Lord's & Partners Property Management Service (OPC) Pvt. Ltd.)

14, Selvapuram Main Road, First Floor, Mannarai, Tirupur – 641 605. … Petitioner vs.

1.The Recovery Officer, Employees' State Insurance Corporation (Sub Regional Office), 1897 Trichy Road, Panchdeep Bhavan, Ramanathapuram, Coimbatore – 641 045.

2.The Sub Registrar Joint – I, Office of the Sub Registrar, Tirupur.

3.Indian Overseas Bank, Represented by its Authorisied Officer/

Assistant General Manager, 11/952, Cross Cut Road, Coimbatore – 641 012.

4.The Director, M/s.PGC Corporation Ltd., (M/s.PGC Group of Companies), No.5, Prem Gardens, Rajaji Nagar, PN Road, Tirupur – 641 604.

(R4 – Suo Motu impleaded as per order dated 08.01.2024 in W.P.No.22710 of 2023 by NMJ) … Respondents Prayer: Writ Petition is filed under Article 226 of the Constitution of India, to issue a Writ of Certiorarified Mandamus, to call for the records of the 1st respondent in the impugned Attachment Order dated 30.10.2018 registered as Document No.13 of 2018 in the office of the 2nd respondent Sub Registrar, Joint – I, Tirupur and to quash the same. Consequently, to DIRECT the 2nd respondent Sub Registrar, Joint – I, to register the Sale Deed of the petitioner in Receipt No.9011 of 2023 and Document No.P/Tirupur Joint SRO-1/85/2023.

For Petitioner : Mr.Sanjay Pinto For R1 : Mr.TNC.Kaushik Standing Counsel For R2 : Mrs.Raja Rajeswari Government Advocate For R3 : Mr.Somasundar * * * *

O R D E R

This Writ Petition is filed to call for the records of the 1st respondent in the impugned Attachment Order dated 30.10.2018 registered as Document No.13 of 2018 in the office of the 2nd respondent Sub Registrar, Joint – I, Tirupur and to quash the same. Consequently, to DIRECT the 2nd respondent Sub Registrar, Joint – I, to register the Sale Deed of the petitioner in Receipt No.9011 of 2023 and Document No.P/Tirupur Joint SRO-1/85/2023.

2.The petitioner was the successful bidder in an auction conducted by Indian Overseas Bank, the 3rd Respondent herein, on 09.10.2018 under the SARFAESI Act, 2002, for the property comprising 3 sites totally measuring 91,125 sq.ft. or 209.19 cents with building at SF.No.14 (Part), Tirupur Municipal Town Ward No.7, TS No.6/2B and 7/2, Ward No.D, Block No.4, Rajaji Nagar, Thottipalayam Village, Tirupur Taluk and District. The said 3 parcels of land measure 51,142 square feet, 12,919 square feet and 27,064 square feet. The petitioner deposited the full payment of Rs.10,06,00,000 (Rupees Ten Crore and Six Lakh Only) on 20.02.2019. The 3rd respondent Bank executed a Sale Certificate in his favour on 21.02.2019 for the above- mentioned property. It is pertinent to point out that way back on 23.09.2011, the Mortgage was created on the property by a third party (PGC Corporation) in favour of the 3rd respondent Bank. As the 2nd respondent Sub Registrar had then refused to register the Sale Certificate in the petitioner's name, citing an Attachment Order of the Income Tax Recovery Officer. The 3rd respondent Bank was constrained to file W.P.No.13493 of 2020, on the basis of the amendment in Section 26E of the SARFAESI Act on the claim of prior charge. It is a matter of record that the petitioner has nothing to do with ESI dues of the third parties mentioned in the impugned Attachment Order. In any case, the petitioner had purchased this property at an auction of the 3rd respondent Bank on 09.10.2018 even before the Attachment Order of the 1st respondent ESI Corporation. The Attachment Order No.13 of 2018 of the 1st respondent ESI Corporation mysteriously crept into the Encumbrance Certificate only on 15.07.2023. At the time of the bank auction on 09.10.2018 and even at the time of registration of the Sale Certificate in petitioner's favour on 11.03.2021, there was no attachment on the property. The petitioner claims to be absolute owner of the property, with unfettered rights. When he recently sold another part of the property measuring 27,064 square feet, vide Sale Deed dated 06.01.2023 in favour of Explicit Promoters and Agency Pvt. Ltd., registered as Document No.241 of 2023, there was NO ATTACHMENT reflected in the Encumbrance Certificate as on that date, namely 06.01.2023 and there was absolutely no impediment in registering the property. Even in the run up to the sale of the next parcel of land measuring 51,142 square feet, as part of due diligence, an Encumbrance Certificate dated 03.05.2023 was obtained. There was no Attachment Order of the 1st respondent ESI Corporation or any other attachment on the said property. When the petitioner sought to register the Sale Deed dated 23.06.2023 for 51,142 square feet of land in favour of J.P.Associates, to his utter shock the 2nd respondent Sub Registrar refused to register the Sale Deed on 22.07.2023 citing the Attachment Order No.13 of 2018 of the 1st respondent ESI Corporation. The petitioner as a real estate dealer borrows money for his business operations. The petitioner states that credit is a vicious cycle and if he is not able to sell or mortgage his property, legitimately purchased assets, and if, the statutory protection to secured creditors is denied, then his entire business operations would be reduced to a naught. Moreover, the petitioner's fundamental Right to Livelihood guaranteed under Article 21 of the Constitution coupled with his Right to Practise any Profession or carry on any Occupation, Trade or Business under Article 19(1)(g

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top