Canara Bank Vs State of Karnataka

CANARA BANK ASSET RECOVERY MANAGEMENT BRANCH SRD BUILDING HEAD OFFICE ANENX (MANIPAL) UDUPI 576104 REP BY ITS CHIEF MANAGER SRI C S V L NARASIMHA SARMA.

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…PETITIONER

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(BY SRI. VIGNESH S. SHETTY., ADVOCATE)

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AND:

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Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA

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STATE OF KARNATAKA

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REPRESENTED BY ITS PRINCIPAL SECRETARY REVENUE DEPARTMENT ROOM NO 627, 6^TH FLOOR GATE 1, M S BUILDING DR B R AMBEDKAR VEEDHI BENGALURU 560001.

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NC: 2025:KHC:30464 WP No. 2534 of 2025

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HC-KAR

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THE SUB REGISTRAR

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DAVANAGERE VINOBHA NAGAR

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DAVANAGERE

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KARNATAKA 577004.

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DAVANAGERE CITY CORPORATION RAILWAY STATION OPPOSITE PB ROAD, DAVANAGERE 577002 REP BY ITS COMMISSIONER.

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THE COMMISSIONER DAVANAGERE CITY CORPORATION RAILWAY STATION OPPOSITE P B ROAD

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DAVANAGERE 577002.

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…RESPONDENTS

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(BY SRI.SHAMANTH NAIK., HCGP FOR R1 AND R2; SRI. B.K. MANJUNATH, ADVOCATE FOR R3)

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THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTION TO R-2 TO REGISTER THE SALE CERTIFICATE DATED 12.06.2024 IN FAVOUR OF THE AUCTION PURCHASER MR. SRINIDHI B IN VIEW OF THE REPRESENTATION DATED 20.12.2024 ANNX-J.

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THIS PETITION, COMING ON FOR FRESH MATTERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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NC: 2025:KHC:30464 WP No. 2534 of 2025

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HC-KAR

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CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD

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ORAL ORDER

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The petitioner's authorized officer has presented

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a Certificate of Sale dated 12.06.2024 with the second respondent for registration under the Registration Act, 1908, and because the registration is refused, the petitioner has filed the representation dated 20.12.2024 [ as per Annexure-J ]. The petitioner has requested the second respondent to register the Sale Certificate without insisting on e-Katha.

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When Sri Shamanth Naik, the learned High Court Government Pleader, is called upon to respond in the light of the afore grievance, he has placed before this Court that the second respondent has refused the registration because of an order of a temporary injunction in a suit. This Court has given liberty to the second respondent to place on record the directions of the Civil Court while observing that the outcome in this petition must turn on whether

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NC: 2025:KHC:30464 WP No. 2534 of 2025

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HC-KAR

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there is a direction to the second respondent in any pending civil suit not to register the Sale Certificate presented by the petitioner for registration.

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Presently, a printout of the order dated 13.10.2023 in O.S.No.382/2023 on the file of the I Additional Senior Civil Judge and JMFC, Davanagere. It is seen from this printout that the Civil Court in an inter se dispute between the private parties has granted a temporary injunction restraining alienation or transfer of the suit schedule properties. There is no specific direction to the second respondent. When queried on the proposition that such order of temporary injunction must in itself be construed as a direction specific to the second respondent, nothing is brought to this Court's attention.

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If there is an ex parte temporary order of injunction in a suit inter-se certain parties, it must be binding on them and that cannot be a reason for the second respondent to refuse registration. At this

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NC: 2025:KHC:30464 WP No. 2534 of 2025

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HC-KAR

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stage, Sri Vignesh S. Shetty, the learned counsel for the petitioner, submits that this Court must direct the second respondent to register the Sale Certificate without insisting upon e-Katha, and the learned counsel emphasizes that the mortgage is much prior to 2017 and the subject loan is declared NPA in the year 2017 and the petitioner cannot secure e-Katha without the borrower’s participation and the borrower will not support the petitioner. The learned counsel also refers to a decision of this Court in W.P.No.7872/2024, disposed of on 28.05.2024, to support his afore contention.

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It is seen from this order dated 28.05.2024 in W.P.No.7872/2024 that the State Government is directed to issue a Circular to all the Sub-Registrars in the State, and more importantly it is stated that the State Government has also issued a Circular dated 03.02.2025 stipulating that the SubRegistrar shall not refuse registration of Sale

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