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2026 Supreme(Online)(Mad) 31443
IN THE HIGH COURT OF JUDICATURE AT MADRAS
KRISHNAN RAMASAMY, J
M/s.Karur Vysya Bank – Appellant
Versus
The District Registrar, Registration Department, Coimbatore District, Coimbatore – Respondent
Writ Petition
For the Appellants/Petitioners: Mr.A.Arun Babu
For the Respondents: Mr.M.Arunachalam for R4, Mr.K.Aswini Devi Additional Government Pleader for R1 & R2
Attachment on mortgaged property lapses upon auction sale if excess proceeds available after settling arrears.
Headnote:Under Article 226 of the Constitution of India, the petitioner sought a writ of mandamus to direct registration authorities to delete attachment entries in the encumbrance certificate for mortgaged land in Survey No. 421/1C at Malumitchampatti, Coimbatore, registered as Document Nos. 10/2020 and 31/2022. The property was mortgaged to petitioner on 06.10.2015 and auctioned on 26.07.2022 for Rs.1,18,00,000/- against arrears of Rs.1,11,00,000/-, leaving excess of Rs.17,00,000/-. Court found attachment lapses upon sale if excess available post-settlement. Issue framed: Whether attachment entries should be deleted post-auction sale of mortgaged property with excess proceeds. Ratio: Attachments and mortgages relinquish upon sale; excess Rs.17,00,000/- available after settling arrears; petitioner must provide sale accounts or pay excess to respondent. Writ petition disposed with directions to provide accounts within eight weeks or pay Rs.17,00,000/- to 4th respondent.
| Table of Content |
|---|
| 1. prayer to delete attachment from encumbrance certificate. (Para 1) |
| 2. property mortgaged pre-attachment, auctioned with excess proceeds. (Para 2) |
| 3. attachment lapses post-sale; provide accounts or pay excess. (Para 3) |
Prayer: Writ Petition filed under Article 226 of the Constitution of India, seeking issuance of writ of mandamus, directing the 1st and 2nd respondents to efface / delete the attachment entries reflected in the encumbrance certificate relating to land in survey No. 421 /1C measuring to an extent of 1.30 Acre in its middle portion measuring to an extent of 0.30 Acre situated at Malumitchampatti, Coimbatore South Taluk, Coimbatore District registered as Document No.10 of 2020 dated 22.12.2020 and Document No. 31 of 2022 dated 08.07.2022 registered on the file of the 2nd respondent within reasonable time period fixed by this Honble court.
For Petitioner(s): Mr.A.Arun Babu For Respondent(s): Mr.M.Arunachalam for R4 Mr.K.Aswini Devi Additional Government Pleader for R1 & R2 R3 – Not ready in notice R5 & R6 – No Appearance
ORDER
This Writ Petition has been filed seeking issuance of writ of mandamus, directing the 1st and 2nd respondents to efface / delete the attachment entries reflected in the encumbrance certificate relating to land in survey No. 421 /1C measuring to an extent of 1.30 Acre in its middle portion measuring to an extent of 0.30 Acre situated at Malumitchampatti, Coimbatore South Taluk, Coimbatore District registered as Document No.10 of 2020 dated 22.12.2020 and Document No. 31 of 2022 dated 08.07.2022 registered on the file of the 2nd respondent within reasonable time.
2. The learned counsel appearing for the petitioner would submit that the impugned order was passed on 22.10.2020 and the same was registered with the
2nd respondent Sub-Registrar. However, the petitioner granted loan and the subject property was mortgaged in favour of the petitioner on 06.10.2015 thereafter, the subject property was sold through the auction on 26.07.2022.
3. According to the 4th respondent, the property was sold to an extent of Rs.1,18,00,000/- whereas the total arrears mentioned in the notice was Rs.1,11,00,000/- only therefore, excess amount to an extent of Rs.17,00,000/- is available, unless otherwise the said amount is paid, the attachment cannot be removed. He would submit that in the event the remaining amount of Rs.17,00,000/- is settled, certainly, there will not be any attachment. Of course, in the present case, once the mortgagors sold the property, automatically the attachments and mortgages relinquished along with the interest of the second mortgagee attached, if no excess amount is available after settling the original mortgagee. Admittedly, in the present case, a sum of Rs.17,00,000/- is available. Therefore, once it is relinquished, the question of continuing the attachment against the subject property would not come into picture at all. 4. In such being the case, in the event the 4th respondent approach the petitioner, it is up to the petitioner to provide accounts to the 4th respondent with regard to the sale proceeds within a period of eight weeks from the date of receipt of a copy of this order. If the petitioner is not producing accounts, the petitioner is liable to pay about a sum of Rs.17,00,000/- to the 4th respondent.
