THE HON’BLE SRI JUSTICE K.SARATH WRIT PETITION No.3164 of 2025

ORDER

Heard learned counsel for the petitioner and learned Assistant Government Pleader for Stamps and Registration and perused the material on record.

2. The notices sent to the respondent Nos.5 to 9 were returned with an endorsement ‘unclaimed’ and the notice sent to the respondent No.10 was served, but none appears for the respondent No.10.

3. This writ petition is filed questioning the action of the respondent No.4 in not registering the sale deed based on the sale certificate issued by the petitioner pursuant to the auction conducted under the SARFEASI Act to the respondent No.9 (successful bidder) pertaining to the property bearing Shop No.46 in Ground Floor “B” Block of Laxmi Complex, Erragadda, Hyderabad, situated near Fateh Nagar Flyover Bridge, Sanath Nagar, on the pretext of attachment order dated 08.05.2017 in I.A.No.59 of 2017 in ABR/CF No.262 of 2017 passed by the respondent No.3 despite of the notice dated 06.12.2024 as illegal and arbitrary.

4. Learned counsel for the petitioner submits that the respondent Nos.5 to 8 have approached the petitioner- Finance Company for the purpose of finance facility and obtained mortgage loan of Rs.30,00,000/- on 06.08.2014 and the respondent No.6 has mortgaged the subject property through registered mortgage deed bearing No.3033/2014 dated 07.08.2014. He further submits that in view of default in payment, the petitioner-Company has initiated proceedings under the provisions of Section 14 of SARFAESI Act and took over the possession of the subject property and later the petitioner has sold the property by way of auction in accordance with the procedure as contemplated under the SARFAESI Act. In the auction, the respondent No.9 stood as highest bidder and the petitioner-Company has issued sale certificate dated 12.09.2024 in his favour and confirmed the sale after payment of full amount. After issuance of sale certificate, the petitioner-Company and the respondent No.9 took steps for registration of the sale certificate and approached the respondent No.4, but the respondent No.4 has refused to receive the said document on the pretext that the property is under attachment by virtue of Orders in I.A.No.59 of 2017 in ABR/CF No.262 of 2017 passed by the respondent No.3- Deputy Registrar of Chits/Arbitrator, Erragadda, Hyderabad.

5. Learned counsel for the petitioner further submits that the action of respondent No.4 is contrary to the Orders passed by this Court in City Union Bank Limited Vs Sub Registrar, Peddapalli and Ors.,, 2018 (5) ALT 279 and the same is followed by another Division Bench of this Court in W.P.No.38125 of 2018 dated 14.10.2019 and requested to direct the respondent No.4 to register the sale certificate in favour of the respondent No.9.

6. On the other hand, learned Assistant Government Pleader for Stamps and Registration submits that though the petitioner herein presented a sale certificate

dated 12.09.2024 under SARFAESI Act and the same was accepted by the respondent No.4 for scrutiny, during the scrutiny of the said document, it is found that as per the orders dated 08.05.2017 in I.A.No.59 of 2017 in ABR/CF No.262 of 217, the property mentioned in the sale certificate is under attachment. The subject property of the writ petition is kept in the prohibited property list on the basis of Attachment Orders passed by the Deputy Registrar of Chits/Arbitrator, Erragadda t Hyderabad (South). The sale certificate presented by the petitioner cannot be registered until and unless the Attachment Orders are set aside.

7. Learned Assistant Government Pleader for Stamps and Registration further submits that though the sale certificate was issued under SARFAESI Act, it cannot be registered, as the property involved in the sale certificate is already in prohibited list on the website of the IGRS and requested to dismiss the writ petition.

8. After hearing both sides and perusing the material on record, this Court is of