THE HON’BLE SRI JUSTICE K.SARATH WRIT PETITION No.5353 of 2023

ORDER

Heard learned counsel for the petitioner and learned Assistant Government Pleader for Stamps and Registration and learned counsel for the respondent No.8 and perused the material on record.

2. Learned counsel for the petitioner submits that the petitioner challenging the action of the respondent No.2 in not registering the sale certificate dated 14.12.2022 issued by the petitioner-bank under the provisions of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for brevity, ‘SARFAESI Act’) basing on the pretext of the Warrant of Attachment Orders dated 20.10.2021 passed by the Principal Senior Civil Judge, Mancherial, in I.A.No.150 of 2021 in O.S.No.19 of 2021 and another Notice-cum-Conditional Attachment Order dated 04.08.2022 passed by the Chit Arbitrator/Deputy Registrar of Karimnagar in I.A.No.8 of 2022 in Arb.No.100 of 2022, which is illegal and arbitrary and contrary to the SARFAESI Act.

3. Learned counsel for the petitioner further submits that the respondent No.4 approached the petitioner-bank for the purpose of finance facility in the form of overdraft facility for his business and made an application. Subsequently, the petitioner-bank sanctioned a total amount of Rs.4,80,00,000/- (Rupees Four Crore Eighty Lakhs Only) to the respondent No.4 and the same was sanctioned after depositing title deeds dated 14.08.2014 in respect of his personal property, which is in relation to residential open place admeasuring 438.75 Sq.Yards or 366.83 Sq.Meters in H.No.12-5/1, 12-5/10, 12-5/11 in Sy.No.256 situated at Mancherial Town & Mandal, as security for repayment of loan and the same is covered by registered sale deed No.4381/2001 dated 23.11.2001. It is submitted that respondent Nos.6 and 7 stood as guarantors and have signed the loan documents including the deed for deposit of title deeds.

4. Learned counsel for the petitioner further submits that in view of default in payment, the petitioner-bank initiated proceedings under provisions of Section 14 of SARFAESI Act and took over the possession of the property on 03.03.2022 and later the petitioner-bank sold the property by way of auction in accordance with the procedure contemplated under the SARFAESI Act. In the auction, the respondent No.8 stood as highest bidder and the petitioner-bank issued sale certificate on 14.12.2022 in his favour and confirmed the sale after payment of full amount. After issuance of sale certificate, the petitioner-bank and the respondent No.8 took steps for registration of the sale certificate and approached the respondent No.2 and the respondent No.2 refused to receive the said document on the pretext that the property is under attachment by virtue of Orders in I.A.No.150 of 2021 in O.S.No.19 of 2021 dated 29.10.2021 passed by Principal Senior Civil Judge, Mancherial and Notice-cum-Conditional Attachment Order dated 04.08.2022 passed by the Chit Arbitrator/Deputy Registrar of Karimnagar in I.A.No.8 of

2022 in Arb.No.100 of 2022.

5. Learned counsel for the petitioner further submits that the action of respondent No.2 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.2 to register the sale certificate in favour of the respondent No.8.

6. On the other hand, learned Assistant Government Pleader for Stamps and Registration, basing on the counter filed by respondent No.2, submits that though the petitioner herein presented a sale certificate dated 14.12.2022 under SARFAESI Act and the same was accepted by the then Sub-Registrar, SRO, Mancherial for scrutiny, during the scrutiny of the said document, it is found that the property mentioned in the sale certificate was already kept in Prohibited Property

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