SOUTH INDIAN BANK LTD., Vs. SUB REGISTRAR

JUDGEMENT

(1.) The petitioner is a banking Company. The 3rd respondent herein secured credit facilities from the petitioner, for which purpose, he mortgaged his property having an extent of 4.05 Ares along with the commercial building covered under Ext.P1 sale deed. The mortgage was confirmed by a letter dated 13.10.2004 issued by the 3rd respondent. Later, default was committed by the 3rd respondent in repaying the borrowed amount and the asset was classified as Non-Performing Asset. Proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act , 2002 (SARFAESI Act for short) was initiated and the property was finally brought to sale by issuing sale notice dated 14.07.2020 as is evident from Ext.P2. The auction sale was conducted on 03.08.2020 and the sale was confirmed in favor of the successful bidders vide Ext.P3 letter.

(2.) The petitioner contends that they took steps for registration of the sale certificate. However, the 1st respondent refused to register the same on the ground that there is a subsisting attachment in respect of the property. Ext.P4 is the copy of the encumbrance certificate, which would reveal that the attachment order is issued by the Family Court, Ettumanoor and it was effected on 28.06.2017 on a petition filed by the 4th respondent. According to the petitioner, the attachments cannot claim precedence over the right of the auction purchaser, who has obtained ownership of the property pursuant to a sale effected by the petitioner under the SARFAESI Act .

(3.) It is in the afore circumstances, that the petitioner has approached this Court seeking a direction to the 1st respondent to register the sale certificate and also to efface the order of attachment dated 28.06.2017 as noted in Ext.P4 encumbrance certificate and also for a further direction to the 2nd respondent to effect mutation of the property consequent to the registration of the sale certificate.