Disposed

Ikf Finance and Investments Limited, v. The State of Andhra Pradesh

Andhra Pradesh HC15 Sept 2026WP/15529/2026

Case brief

AI extract

What is this about?

The petitioner, a secured creditor under the SARFAESI Act, conducted a statutory auction and issued a sale certificate to the successful purchaser. The Sub-Registrar refused to register the sale certificate citing a prior development agreement. The State submitted written instructions that the sale certificate would be registered if presented within the statutory time limits under the Registration Act. The High Court disposed of the writ petition, directing the Sub-Registrar to register the sale certificate upon presentation, following due process of law, within one week.

What did the court decide?

Direction to the Joint Sub-Registrar, Anakapalle to register the sale certificate dated 12.04.2024 if presented by the petitioner or the auction purchaser, following due process of law, within one week of presentation.

Ikf Finance and Investments Limited, Vs The… — Banking and Recovery | Andhra Pradesh HC (2026)

Outcome

Issue for consideration

Whether the Sub-Registrar's refusal to register a sale certificate issued under the SARFAESI Act on the basis of an alleged development agreement is arbitrary and illegal. +1 more

Detailed headnote4 paragraphs

The petitioner, IKF Finance and Investments Limited, exercised its powers under the SARFAESI Act, 2002, conducted a statutory auction of secured assets on 18.08.2022, and issued a sale certificate dated 12.04.2024 to the successful auction purchaser (Respondent No. 6). The Joint Sub-Registrar, Anakapalle (Respondent No. 2) refused to register the sale certificate on the ground of an alleged development agreement dated 05.07.2018 executed by the borrower with a third party.

The petitioner filed a writ petition under Article 226 of the Constitution seeking a declaration that the refusal was arbitrary and illegal, that the development agreement did not confer enforceable rights against the petitioner's statutory enforcement rights, and a direction to the Sub-Registrar to register the sale certificate.

During the hearing, the learned Government Pleader for the State submitted written instructions dated 16.09.2026, stating that if the petitioner or the auction purchaser presented the sale certificate for registration, action would be taken for its registration as per the Indian Stamp Act, 1899 and the Registration Act, 1908, subject to the time limits under Sections 23 and 25 of the Registration Act.

Accepting this submission, the Division Bench held that no further adjudication was required. The writ petition was disposed of with a direction to Respondent No. 2 to register the sale certificate if presented by the petitioner or Respondent No. 6, following due process of law, within one week of its presentation. No order as to costs was made. Pending miscellaneous petitions were closed.

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APHC010293792026

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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction)

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WEDNESDAY, THE 16^th DAY OF SEPTEMBER 2026

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PRESENT

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THE HONOURABLE SRI JUSTICE BATTU DEVANAND

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THE HONOURABLE SRI JUSTICE TUHIN KUMAR GEDELA

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WRIT PETITION NO: 15529 OF 2026

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Between:

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IKF Finance and Investments Limited, Rep. by its Authorized Officer, D. No. 40-1-44, Corporate Centre, M.G. Road, Vijayawada - 520010, A.P. Desaboyina Sinivasa Rao, S/o Venkateswara Rao, age 54 years.

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...Petitioner

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AND

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The State of Andhra Pradesh, Stamps and Registration department. Rep. by the Secretary,Secretariat, Velangapudi, Andhra Pradesh - 522238.

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The Joint Sub Registrar, Ankapalle District, Andhra Pradesh - 517002.

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Yugandar Jonnalagadda, Aged about 54 years, S/o. Venkateswara Rao, D. No. 52-1/4-8C, Veterinary Colony, Gundadala, Vijayawada -521107.

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Nagalakshmi Jonnalagadda, Aged about 41 years, W/o of Yugandar Jonnalagadda, D.No. 52-1/4 -8C, Veterinary Colony, Gundadala Vijayawada - 521107.

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M/s Shree Ramanjaneya Builders, Rep. by Executive Partner Sri Karthik Gompa, S/o Sri G.V.V.S. Narayana, Door No. 9-407/1, Visalakshinagar, Visakhapatnam - 53004

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M/s Exxeella Infra projects Private Limited, F. No. 104 P.No.96, Sri Lakshmi Lake View, Vediri Estates, HMT Colony, Miyapur, Hyderabad, Telangana - 500049

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...Respondents

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Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to Issue a Writ of Mandamus or any other appropriate Writ, Order or Direction to a) Declare that the refusal to register the sale certificate on the basis of the alleged development agreement is arbitrary, illegal, without jurisdiction, and violative of the statutory rights of the Petitioner under the SARFAESI Act b) Declare that the development agreement executed by the borrower with a third party without the prior written consent is illegal and arbitrary and does not confer any enforceable right capable of obstructing or defeating the statutory enforcement rights of the Petitioner c) Declare that the to the extent of scheduled property mentioned under the Memorandum of Deposit of Title deeds shall be excluded from the development agreement d) Direct respondent no. 2/Joint Sub Registrar-1, Anakapalle to forthwith accept and register the sale certificate executed by the Petitioner Company in respect of the Schedule mentioned property, pursuant to the exercise of powers under the SARFAESI Act,2002 and e) Pass

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IA NO: 1 OF 2026

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to Direct Respondent No. 2, the Sub-Registrar, Anakapalle, to forthwith accept and register the Sale Certificate dated 12.04.2024 issued by the Petitioner in favour of Respondent No. 6, the Successful Auction Purchaser, pursuant to the statutory auction conducted under the SARFAESI Act on 18.08.2022, without reference to or on the basis of the alleged Development Agreement dated 05.07.2018; Pass

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IA NO: 2 OF 2026

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to Direct Respondent Nos. 3, 4, and 5 to maintain status quo with respect to the physical condition and possession of the Schedule Properties pending disposal of this Writ Petition; and Grant

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IA NO: 3 OF 2026

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to Direct respondent No.2 to not to allow further transactions on the said property to create further third- party rights over the property: Pass

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Counsel for the Petitioner: TAGORE YADAV YARAGORLA

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Counsel for the Respondents: KRISTAM SAKTHI NIRANJAN GUPTHA Counsel for the Respondents: GP FOR REGISTRATION AND STAMPS

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The Court made the following order:

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THE HON’BLE SRI JUSTICE BATTU DEVANAND & THE HONOURABLE SRI JUSTICE TUHIN KUMAR GEDELA

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WRIT PETITION NO.15529 OF 2026

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ORDER: (Per Hon’ble Sri Justice Battu Devanand)

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Heard learned counsel for the petitioner and learned Government Pleader appearing for respondent Nos.1 and 2 and Sri K.S. Niranjan Gupta, learned counsel appearing for 6^th respondent.

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The grievance of the petitioner is that 2^nd respondent refused to register the sale certificate, dated 12.04.2024 issued by the petitioner to 6^th respondent on the alleged development agreement, dated 05.07.2018. In fact, the petitioner raised several contentions in the affidavit filed along with the writ petition. However, basing on the written instructions placed before this Court by the learned Government Pleader for Revenue, dated 16.09.2026, all those contentions need not be looked into at this stage.

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In the written instructions, dated 16.09.2026 placed before this Court, it is averred as extracted hereinunder:

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“It is further submitted that if the parties to the document wishes to register the said sale certificate, the said sale certificate shall be presented for registration before the Registering Authority within 4 months from the date of its execution under Section 23 and within 8 months with penalty under Section 25 of the Registration Act, 1908 and Rule 34 of the Rules under A.P. Rules under the Registration Act, 1908.

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It is submitted that if the petitioner or claimant/Respondent No.6 presents the Sale Certificate for registration, action will be taken for registration of the said document as per the Act and Rules under Indian Stamp Act, 1899 and the Registration Act, 1908.”

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Basing on the above written instructions, the learned Government Pleader would submit that if the petitioner or 6^th respondent present the sale certificate for registration, action will be taken for registration of the same as per the relevant Act and Rules.

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In view of the submission of the learned Government Pleader and in the light of the written instructions extracted hereinabove, in our considered view, no further adjudication is required in this writ petition and as such, it is appropriate and reasonable to dispose of the writ petition with a direction to 2^nd respondent to register the sale certificate, if it is presented before them by following due process of law, in the interest of justice.

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Accordingly, the writ petition is disposed of with a direction to 2^nd respondent to register the sale certificate to be presented before them by the petitioner or 6^th respondent, by following due process of law, within a period one week from its presentation.

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7) There shall be no order as to costs.

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As a sequel, miscellaneous petitions pending, if any, shall stand closed.

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_________________________ JUSTICE BATTU DEVANAND

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_____________________________ JUSTICE TUHIN KUMAR GEDELA

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Dated: 16.09.2026 PGR

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