Auction purchaser challenged refusal to register a sale certificate issued under the SARFAESI Act due to a prior co-operative attachment. The Court held that under Section 31B of the RDB Act, bank claims prevail over co-operative claims and directed registration.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE C. JAYACHANDRAN
WEDNESDAY, THE 5TH DAY OF JUNE 2024 / 15TH JYAISHTA, 1946
WP(C) NO. 39747 OF 2023
PETITIONER:
SALIM ANIYAN KUNNUMMEL AGED 50 YEARS S/O. SRI. ABBU ANIYAN KUNNUMMEL, KOLAYAD, KANNUR, KERALA, PIN - 670650 BY ADVS. T.RAMESH BABU C.K.SREEJITH
RESPONDENTS:
BUNDER MANGALORE BRANCH, MANGALURU REPRESENTED BY ITS CHIEF MANAGER, PIN - 575001
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.06.2024, ALONG WITH WP(C).33722/2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P.(C).Nos. 39747 & 33722 of 2023
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE C. JAYACHANDRAN WEDNESDAY, THE 5TH DAY OF JUNE 2024 / 15TH JYAISHTA, 1946
WP(C) NO. 33722 OF 2023
PETITIONER:
CANARA BANK, ASSET RECOVERY & MANAGEMENT (ARM) BRANCH CANARA BANK, ASSET RECOVERY & MANAGEMENT (ARM) BRANCH CIRCLE OFFICE BUILDING, BALMATTA ROAD, MANGALURU KARNATAKA,REPRESENTED BY ITS CHIEF MANAGER, PIN - 575001 BY ADVS. SANTHOSH PETER (MAMALAYIL) P.N.ANOOP M.S.SANDEEP SUDHAKARAN
RESPONDENTS:
BY ADV. AJITH VISWANATHAN – GOVERNMENT PLEADER
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.06.2024, ALONG WITH WP(C).39747/2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P.(C).Nos. 39747 & 33722 of 2023
COMMON JUDGMENT
W.P.(C).Nos. 39747 & 33722 of 2023 Dated this the 5th day of June, 2024
Petitioner in the Writ Petition first above referred, is the auction purchaser in a sale conducted by the respondents 1 & 2, in terms of the provisions of the SARFAESI Act. The short grievance of the petitioner is that, the sale certificate issued is not permitted to be registered, on the allegation that there is a prior attachment in the property.
2. Having heard the counsel appearing for the
respective parties, this Court finds that, the same is not a sufficient cause to refuse registration. In view of the provisions contained in 31B of the Recovery of Debts and Bankruptcy Act, 1993,('R.D.B. Act' for short) the claims of
W.P.(C).Nos. 39747 & 33722 of 2023
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the co-operative sector cannot have precedence over the claims of the Bank, in terms of the R.D.B. Act.
3. In the circumstances, the 3rd respondent/Sub Registrar is directed to register the documents,
once the same are presented for registration, not withstanding the factum of attachments noted in the Encumbrance Certificate.
The Writ Petition (Civil) is disposed of as above.
Sd/C. JAYACHANDRAN JUDGE
TR
W.P.(C).Nos. 39747 & 33722 of 2023
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APPENDIX OF WP(C) 39747/2023
PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE SALE CERTIFICATE ISSUED IN FAVOUR OF THE PETITIONER Exhibit P2 TRUE COPY OF THE ORDER DATED 12.7.2023 IN S.A NO. 252/2021 PASSED BY THE HON'BLE DEBT RECOVERY TRIBUNAL Exhibit P3 THE TRUE COPY OF THE LETTER DT.29/11/2021 ISSUED BY 1ST RESPONDENT TO 3RD RESPONDENT Exhibit P4 TRUE COPY OF THE NOTICE DATED 1.11.2023 Exhibit P5 THE TRUE COPY OF THE LETTER ISSUED BY 7TH RESPONDENT TO THE 3RD RESPONDENT DT. 20/7/2023
W.P.(C).Nos. 39747 & 33722 of 2023
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APPENDIX OF WP(C) 33722/2023
| PETITIONER EXHI | BITS | |
|---|---|---|
| Exhibit 1 | TRUE COPY OF THE LETTER EVIDEN DEPOSIT OF TITLE DEEDS DATED 08.02. AND 22.02.2008 |
CING 2008 |
| Exhibit P2 | TRUE COPY OF ENCUMBRANCE CERTIFI ISSUED BY THE 3RD RESPONDENT |
CATE |
| Exhibit P3 | TRUE COPY OF THE E-AUCTION SALE NO DATED 08.10.2021 |
TICE |
| Exhibit P4 | TRUE COPY OF THE SALE CERTIFICATE D | ATED |
| 29.11.2021 ISSUED BY THE PETITI BANK |
ONER | |
| Exhibit P5 | TRUE COPY OF THE COMMUNICATION FROM 1ST RESPONDENT DATED 11.11.2021 |
THE |
| Exhibit P6 | TRUE COPY OF THE COMMUNICATION D 12.11.2021 |
ATED |
| Exhibit P7 | TRUE COPY OF THE JUDGMENT OP(DRT)306/2021 DATED 22.3.2023 |
IN |
| Exhibit P8 | TRUE COPY OF THE ORDER OF HONOURABLE DEBT RECOVERY TRIBUNAL SA.NO.252/2021 DATED 12.7.2023 |
THE IN |
| Exhibit P9 | TRUE COPY OF THE SALE CERTIFI ISSUED BY THE APPLICANT BANK TO AUCTION PURCHASER DATED 21.7.2023 |
CATE THE |
| Exhibit P10 | TRUE COPY OF THE COMMUNICATION FROM 2ND RESPONDENT TO THE 3RD RESPON DATED 19/07/2023 |
THE DENT |
| Exhibit P11 | TRUE COPY OF THE ENCUMBR |
ANCE |
| CERTIFICATE ISSUED BY THE RESPONDENT DATED 11.8.2023 |
3RD |
1 issue framed by the court
Whether a Sub Registrar can refuse registration of a SARFAESI sale certificate on the ground of a prior co-operative sector attachment.
2 provisions across 2 enactments
Salim Aniyan Kunnummel
Authorized Officer, Canara Bank, ARM Branch
Canara Bank
Sub Registrar Peravoor
State of Kerala
Registrar of Co-operative Societies
C. Jayachandran
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
