SARFAESI sale certificates must be registered despite existing court attachments per circular and settled law.

ORDER

This Writ Petition has been filed challenging the impugned refusal check slip dated 16.03.2026 issued by the 3^rd respondent refusing to register the sale certificate dated 16.03.2026 presented by the petitioner for registration on the ground that there is a court attachment over the very same property, which is the subject matter of the sale certificate.

2. The petitioner has challenged the impugned refusal check slip on the ground that it has been issued by total non-application of mind to the settled law, which is also confirmed by the 1^st respondent’s own circular No.22482/C1/2022, dated 12.07.2024 that when a sale certificate is issued under the SARFAESI Act, it is well settled that any attachment existing will have no significance and on that ground, the registering officer cannot refuse to register the sale certificate.

3. Mr.P.Harish, learned Government Advocate, accepts notice on behalf of the respondents. He does not dispute the issuance of the circular No.22482/C1/2022, dated 12.07.2024 by the office of the Inspector General of Registration, Chennai – 28.

4. The relevant portion of the circular, which supports the case of the petitioner is reproduced hereunder:-

“f) Hon’ble High Court in W.P.No.11056/2024 has observed that attachment made by some department and when the sale certificate is issued under SARFAESI Act, 2002 , it is well settled that any attachment existing will have no significance and on that ground the registering officer cannot refuse to register the sale certificate.”

5. As seen from the above mentioned circular issued by the Inspector General of Registration, it is clear that the 3^rd respondent cannot refuse registration of the sale certificate issued under the SARFAESI Act even if there is any attachment existing over the property. The said circular is also issued only by following the directions issued by this Court in W.P.No.11056 of 2024. In view of the same, necessarily, the 3^rd respondent will have to register the sale certificate presented by the petitioner for registration. By total non-application of mind to the circular issued by the Inspector General of Registration as well as to the settled law, the 3^rd respondent has issued the impugned refusal check slip, dated 16.03.2026 refusing to register the sale certificate presented by the petitioner for registration.

6. Since the impugned order is arbitrary and not in accordance with law, the impugned refusal check slip, dated 16.03.2026 issued by the 3^rd respondent is hereby quashed and this Writ Petition is allowed by directing the 3^rd respondent to register the sale certificate dated 16.03.2026 executed by the petitioner bank in favour of Ramakrishnan, if the same is otherwise in order, within a period of two (2) weeks from the date of receipt of a copy of this order. No costs. Consequently, the connected miscellaneous petition is closed.