Punjab National Bank Vs the Senior Sub-Registrar

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NC: 2026:KHC:16875 WP No. 35722 of 2025

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1 -

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24^TH DAY OF MARCH, 2026

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BEFORE

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THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 35722 OF 2025 (GM-ST/RN)

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BETWEEN:

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PUNJAB NATIONAL BANK MALLESHWARAM BRANCH OPP: SSLC BOARD, 6^TH CROSS, SADASHIVNAGAR, BENGALURU - 560078. REPRESENTED BY ITS CHIEF MANAGER, M SREENIVASA RAO

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…PETITIONER

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(BY SRI. SHETTY VIGNESH SHIVARAM.,ADVOCATE)

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AND:

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Digitally signed by CHAITHRA A Location: HIGH COURT OF KARNATAKA

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THE SENIOR SUB-REGISTRAR, SRIRAMPURAM, MAGADI ROAD, BENGALURU-5600523

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THE INSPECTOR GENERAL OF REGISTRATION AND COMMISSIONER OF STAMPS, 8^TH FLOOR, KANDAYA BHAVAN, K.G. ROAD, BENGALURU - 560009.

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LIKITH ENTERPRISES REPRESENTED BY ITS PROP SRI. LIKITH N. S/O NANJUNDASWAMY N AGED ABOUT 31 YEARS R/AT NO.9, 10^TH CROSS, 13^TH MAIN, GOKUL 1^ST PHASE, 1^ST STAGE, MATHIKERE, BANGALORE-560054

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2 - NC: 2026:KHC:16875 WP No. 35722 of 2025

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HC-KAR

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SRI. NANJUNDASWAMY N, S/O NANJAPPA AGED ABOUT 56 YEARS,

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SMT. RADHA N W/O NANJUNDASWAMY N AGED ABOUT 54 YEARS

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BOTH R4 & R5 ARE RESIDING AT NO.11, 11^TH CROSS, 2^ND MAIN, GURUMURTHY REDDY COLONY, YESHWANTHPURA, BANGALORE-560022

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…RESPONDENTS

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(BY SMT. NAVYA SHEKAR ,AGA FOR R1 & R2)

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THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO-DIRECTION TO RESPONDENTS TO REMOVE THE ILLEGAL SUBSEQUENT ENTRIES FROM THE SCHEDULE PROPERTY IN VIEW OF THE REPRESENTATION DATED 12.11.2025 ANNX-E.

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THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM

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ORAL ORDER

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Heard the learned counsel for the petitioner–Bank and the learned Additional Government Advocate appearing for respondent No.1.

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The petitioner–Bank has instituted the present writ petition being aggrieved by the entries reflected in the

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3 - NC: 2026:KHC:16875 WP No. 35722 of 2025

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HC-KAR

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Encumbrance Certificate, which have arisen subsequent to the creation of an equitable mortgage by deposit of title deeds by the borrower in favour of the petitioner–Bank.

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It is the specific case of the petitioner–Bank that the borrower, despite having created an equitable mortgage in favour of the Bank as security for the loan availed, has proceeded to execute a registered Gift Deed in favour of his daughter, thereby giving rise to subsequent encumbrances. The said act, according to the Bank, is intended to defeat and dilute the security interest created in its favour.

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In this background, the petitioner–Bank is stated to have submitted a representation dated 12.11.2025 before the jurisdictional Sub-Registrar (respondent No.1), seeking deletion of the subsequent entries in the Encumbrance Certificate.

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This Court is of the considered view that entries

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reflected in the Encumbrance Certificate, being

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4 - NC: 2026:KHC:16875 WP No. 35722 of 2025

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HC-KAR

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consequential to duly registered documents, cannot be effaced or annulled in exercise of writ jurisdiction, unless the underlying registered instruments are set-aside in proceedings known to law.

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However, it is to be noted that the equitable mortgage created by deposit of title deeds in favour of the petitioner–Bank confers a paramount and prior charge over the subject property. The subsequent execution of the Gift Deed by the borrower, even if registered, would remain subservient to the Bank’s pre-existing security interest and cannot prejudice the Bank’s right to enforce its mortgage.

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In that view of the matter, this Court is of the opinion that it is not necessary for the petitioner–Bank to challenge the subsequent registered document at this stage. The petitioner–Bank is at liberty to enforce its security interest and proceed against the mortgaged property in accordance with the applicable banking laws,

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5 - NC: 2026:KHC:16875 WP No. 35722 of 2025

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HC-KAR

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and its right as a secured creditor holding a first lien shall remain unaffected by the subsequent transactions.

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Accordingly, without expressing any opinion on the validity of the subsequent entries reflected in the Encumbrance Certificate pursuant to the registered Gift Deed, the writ petition stands disposed of reserving liberty to the petitioner–Bank to take recourse to such remedies as are available in law.

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Sd/(SACHIN SHANKAR MAGADUM) JUDGE

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NBM

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List No.: 1 Sl No.: 6

Punjab National Bank v. the Senior Sub-Registrar

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Punjab National Bank v. the Senior Sub-Registrar

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