Allowed writ petition directing Sub-Registrar to register a SARFAESI Sale Certificate. Held Civil Court attachment does not bar registration when creditor acquires title prior to attachment under SARFAESI Act.
Impugned order quashed; Respondent directed to register and release Sale Certificate within four weeks.
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IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 26.10.2021
CORAM:
THE HON'BLE MRS.JUSTICE V.BHAVANI SUBBAROYAN
W.P.NO.22941 OF 2021
R. Kalaiselvan ... Petitioner
Versus
PRAYER:
Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorarified Mandamus to call for the records of the 2nd respondent herein vide refusal check slip with refusal number RFL/Suramangalam2/2019 dated 19.07.2019 quash the same and consequently, to direct the 2nd respondent to register the sale certificate dated 09.05.2019 issued by the 1st respondent in favour of the petitioner.
For Petitioner : Mr. K.Sathish Kumar
For Respondents : Mr. Yogesh Kannadasan Government Advocate
ORDER
Heard Mr.K. Sathish Kumar, learned counsel appearing for the petitioner and Mr. Yogesh Kannadasan learned Government Advocate, takes notice on behalf of the respondents, by consent both parties, this writ petition taken up for final disposal at the admission stage itself.
"4. Section 71 of the Registration Act, 1908 deals with reasons for refusal to register which has to be recorded. In terms of Sub Section (1) of Section 71, every Sub Registrar refusing to register a document, except on the ground that the property to which it relates is not situate within his Sub District, shall make an order of refusal and record his reasons for such order in his Book No.2 and endorse the words ''registration refused'' on the document, and on application made by any person executing or claiming under the document, shall, without payment and unnecessary delay, give him a copy of the reasons so recorded. In terms of Sub Section (2), no registering officer shall accept for registration a document so endorsed unless and until, under the provisions hereinafter contained, the document is directed to be registered.
placed reliance on Order 38, Rule 10 CPC stating that attachment before Judgment shall not affect the rights, existing prior to the attachment, of persons not 4 parties to the suit, nor bar any person holding a decree against the defendant from applying for the sale of the property under attachment in execution of such decree. The lending bank namely, Canara Bank, Vadamadurai if satisfies with the title of the petitioner over the property, can request the Registrar to register the document. In such circumstances, merely because an order has been passed by the Civil Court effecting attachment, cannot be a bar for entertaining a document for registration. Hence, the reasons assigned by the respondent refusing to register, vide his memo, dated 25.07.2014, is not in accordance with law beyond the scope of Section 71 of the Act.
registration and release of the Sale Certificate will not in any manner affect any order of attachment. Consequently, W.M.P.Nos.24154 and 24156 of 2021 are also closed. No costs.
Sd/-
Assistant Registrar(CS VIII)
//True Copy//
Sub Assistant Registrar
sp/msm
To
+1cc to the Government Pleader, S.R.No.55877
W.P.No.22941 of 2021
RGN(CO) PM/02/12/2021
2 issues framed by the court
Whether a prior Civil Court attachment order bars the registration of a Sale Certificate executed under the SARFAESI Act.
Whether Section 71 of the Registration Act permits refusal of registration on the ground of Civil Court attachment.
Colour shows how this judgement treated each authority
W.P.(MD) No.14388 of 2014 dated 01.09.2014Relied on¶18
3 provisions across 3 enactments
R. Kalaiselvan
The Chief Manager, State Bank of India, Namakkal Branch
The Sub-Registrar, Suramangalam
V. Bhavani Subbaroyan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
