Purchasers of encumbered property assume liability for existing encumbrances, which must be acknowledged before acquisition.

JUDGMENT

Challenge is made to the fair and decreetal order passed in E.A.No.3 of 2024 in E.P.No.3162 of 2021 in O.S.No.4869 of 2019 dated 04.08.2025 on the file of X Assistant Judge, City Civil Court, Chennai by the proposed parties.

2. Parties are indicated herein as per their litigative status and ranking before the Executing Court.

3. An execution application in E.A.No.3 of 2024 was taken out by the proposed petitioners No.1 to 6 under Order 21 Rule 58 and 97 of C.P.C, to permit the proposed petitioners to record the objection on the order of attachment passed in E.P.No.3162 of 2022.

4.Details of their affidavit filed in E.A.No.3 of 2024 is given in brief:

The petitioners are the purchasers of the attached property. The property was originally owned by Mr.Jayaraman Vijayakumar (borrower) who died intestate leaving behind the 2nd respondent V.Nithya as his legal heir. Mr.Jayaraman Vijayakumar (Borrower) approached M/s.ECL Finance Ltd. for availing housing loan. The said Finance Company sanctioned a sum of Rs.4,45,00,000/- as per sanction letter dated 28.02.2018. He availed the said sum as housing loan and executed loan agreement in Loan A/c.No.LCHELAP0000040957 dated 28.02.2018, agreeing to repay the loan in 180 EMIs each Rs.4,85,029/- per month and other relevant documents in favour of M/s.ECL Finance Ltd.

4.1. Wherein, under certain terms and conditions, upon which loan facility was sanctioned. The borrower defaulted in payment of installment. M/s.ECL Finance Ltd., classified the borrower account as Non-Performing Asset on 31.01.2019 within the meaning of Section 2(o) of the Act and issued statutory notice under Section 13(2) of SARFAESI Act, on 14.03.2019, calling upon the borrower to discharge their liabilities in full within 60 days from the date of receipt of the said notice.

4.2. The borrower failed to discharge the liability within statutory period. The Finance Company being secured creditor upon deposit by the borrower after statutory notice issued under Section 13(2) of SARFAESI Act, 2002 in order to take possession of the secured asset, finance company issued possession notice on 13.06.2019 and other formalities were complied with.

4.3. The original lender M/s.ECL Finance Ltd., assigned the debt payable by the borrower vide deed of assignment dated 17.12.2020 in favour of M/s.Edelweiss Asset Reconstruction Co.Ltd., (in short, to be mentioned herein after as EARC Ltd.,) became full and absolute owner and the loans including the right to file a suit. EARC Ltd, filed the petition under Section 14 of SARFAESI Act before the Chief Metropolitan Magistrate Court, Egmore, Chennai in Crl.M.P.No.6108 of 2021 to take possession of the secured assets of the property of the borrower. The said M.P., was ordered on 22.12.2021 to take possession of the petition schedule mentioned property and Advocate Commissioner was appointed to take actual possession of the schedule mentioned property and the warrant was issued on 16.02.2022. EARC Ltd., took physical possession of the company on 22.06.2022 and sold the mortgaged property to the highest bidder in the public auction held on 19.09.2022 and sale certificate Doc.No.386/2023 was issued on 24.11.2022 in favour of the proposed petitioner/ successful bidder, for a sum of Rs.2,01,00,000/-. Electricity Charges and water tax charges are in the name of proposed petitioners. The sold property was attached by the decree holder in the E.P., filed by him before the X Assistant City Civil Court, Chennai and the Executing Court passed an order to sell the mortgage property. The proposed petitioner will be put to irreparable loss as he has purchased the property through auction for a s