The High Court · 2025

respect to the registration of property in Sale Certificate in favour of the Auction Sale Purchase Shair Ahmed. for the property All that the House bearing It4unicipal No.12-'1 5 9/B and 12 15-9781A Consisting of Ground Floor 1350 Sq.Ft of built up area of RCC, First Floor 1350 Sq.Ft of built-up area of RCC, Second Flcor 1350 Sq.Ft oi bur t-rrp area of RCC, total built-rrp area 4050 Sq.Ft, admeasurrnq 150 Sq Yards. situated at [\/anikeshwari Nagar, Secunderabad, and Bounded as follou.,s NIORTH ROAD SOUTH HOUSE NO 12-i5-979 EAST ROAD WEST HOTJSE NO. 12-15-962 All that the remarning Part of House No..l2-15- 97Bi A Crrnsisting o. Ground First and Second Floor, in Survey No.169, admeasur ng 46 Sq.Yards Situated at Manikeshwari Nagar, Secunderabad, and Bounded as follows NORTH 13 WIDE ROAD SOUTH HOUSE NO. 12-15-97S EAST 16 \A/IDE ROAD WEST PART OF HOUSE NO- 12-15.978/4, lA NO: 1 OF 2025 Pet tion uncier Section 151 cPC praying that in the circumstances stated in the affrdavit filed in support of the petition, the High court may be pleased to lssue a a DIRECTIoN to lhe Respondent No.4 to consider the representation of the Petitioner dL 18 C4.2024, And Pass such other order or orders as are deemed fiI and proper in the f;tcts and circumstances of the case ancl do lustice. Counsef for the Petitioner : SRI T.SASI KUMAR Counsel for the Respondents No,1to4 : SMT.S.SRAVANTHI, . ASST.GP FOR STAMPS AND REGISTRATION Counsel forthe Respondents No.5 : SRt p.DURGA PRASAD. SC FOR CHIT FUND Counsel for the Respondents No.6 : -- The Court made the following: ORDER HON'BLE SRI JUSTICE K.SARATH W.P.No. L2578 of 2025 ORDER: Heard Sri T. Sasi l(umar, learned counsel lor thc petitioncr, Smt. S. Sravanthi, learned Assistatit Government Pleader for Stamps and Rcgistratiorl, appearing for the respondent Nos. I to 4, and Sri P Durga Prasad, learned Standing Counsel appearlng lor the lespondent No.5 ar-rd perused the material available on record.

2. This writ petition is filed seeking for a direction to the respondent No.4/ Sub-Registrar, Marredpally, Secr-.rnderabad, to delete the property viz., H.No. 12-15-978 &' 12-15-9781A, consisting of G+2 floors in Sy. No.169, admeasuring 150 sq yds., situated at Manikeshwari Nagar, Secunderabad, Hyderabad District (hereinafter referred to as 'subject property") from the list of prohibited properties and to register the Sale Ccrtificate issued by the petitioner \ I SK,,I \\'1. \,, il<:s oflt)li .\ c()lIp.rlt\: 1ll la\.'ollr of thc respondent No.6, the Sale Aultion Purr:hrLst'r'. undcl Rule 9 (6) oi the Sccuritr. Ilr t ('re sl (lrr rlirrccrn un t) Rulcs. 2002 3 'l'lrc lciLlnccl c:ounscl for the petitloner srrlrmits Llrzrt oliginerlly, the sulrject property was pr-tr-chascd by onc M/s.GVS Patanjali Ayrrrvedic by oblaining loan lacrlity, ,"vr th co-borrowel's viz., Mrs (larldanrcdl.ri \/rj:r\/a Lakshmi and Mr Sal hvarr arlyan:r Gzrclclamedhi and Mr. Pradeep (iaddanrcdhi. Later, the said borrowers defaulted in rr)i)il\''1n(rnt of [hc saicl loan. The petitioner company, aftcr follow-irrg tlrc duc process of laru,, initrzrted pr-or:ccrlings undcr- thc provisior-rs of SecLion l4 of thc Scc'uritization ancl Reconstruction of Financial Assets anrl Enforccmcnt of Security Interest Act, 2OO2 ('Sr\llFAIiSI Act') . to<;k over the posscssion of the propert\r iu.rcl lalcr t1-rc pctitione r-company brought tirrr mortgirgecl propertlr for auction which was condr-rctcd on 25 O9-2O23 In the said auction, the 3 s K,l W.P.No.l2r7S ol l(ll i respondent No.6 has stood as the highest bidder' Accordingly, the pctitioner-company I'ras issued Sale Certificate in his lavour on 25 09-2023. Thereafter, the petitioner company has submitted the Sale Certilicate to thc respondent No.4 for registration ort 19-12 2023. Horvever, the respondent No.4 has rcjected the registration of thc Sale Certificate vidc his letter dated 19-12-2023 stating that unless and until the attachment order passed by the Deputy Registrar ol Chits, Vijayawada is raised and the subjcct property is removed from the prohibition 1ist, ttre Certificate of Sale cannot be admitted for Registration and he also informed that the subjcct propertf is und.er attachment in pursuance of the orders dated 27-Og-2O19 in I.A.No.19O of 2Ol9 in ACP No.195 of 2olg, passed by the Deputy Registrar of Chits/Arbitrator at Vijayawada, Krishna District, A.P' under Section 68 (21 of the Chit Funds Act, 1982 (for brevity'the Act, l9B2). -1 \!.P.N,, llilll of l0l-5 S .+. Thc lcarned Counscl for the petitioner worrl(l liu-1 trcr sr-ilrnrit that the petitioner compallv is a s('c'rlr'('d r'r'r'clitor lravirrg frlst charqc ovcr the subjcct Pr'o1)( r-[\ ,,n ()5 0(] 2O l8 rr'liiclr is mucli prior to thc arta(:llrn('nr or-rlcrs clatccl 27-09-20 19 and therelbre as pcr S('cti()n [r8 ol tl-re r\ct, 1982, t1-rc attac]rment orclcr is nol lrirrcling on the petitior)er company arrd tlrcrr:[or<: il \\ ill nol al'[cct Lhc rights of the sccured cr-edilor- ovcr- tlrc si-rblcct l)ropcrtv, and further. such attaclrrncrrts hlrvc no irnpirct on the sale that \{rould b<. c:oncluctecl unrlcr thr: Act. In spite of receiving the lt'ttel frorrr llrt: pctitioncr' conlpany, the respondent No.4 clicl not <'hoose to givc rcplv nor registercd the sirle c'cr1i1ir:atr. arrrI on thr: other hand insisting the pL'titiolrer-cornllar\ to gct tlrc ordcr from the Court for rc:gistratiorr. Thc petitioncr-comp:lny is not a party to lht: ytr',rcccrlings in Lr\.No.i90 of 2019 in ACP No.195 ol 2019, initiatecl by thc respondent No.5- M/s. Mar'pgaclerrslri Chit Funcl ht Ltd., Vijayau,ada, 5 SK,J \\' lr.\o. 12573 ot 1025 and therefore the said attachment is not binding on tl-rc petitioner-compan-v

5. The learned counsel for the petitroner- compan\r lurther submits that the respondent No.4 despite receipt ol the letter from the petitioner- company, relused to rcmove the subject property from the list ol prohibited properties.

6. Learnecl counsel for the petitioner-company furLher submits tl-rat tl-re action of respondent No.4 in not removing thc subject property from the prohibited list is contrary to the Orders passed by this Court in Citg tlnion Bank Limited Vs Sub Registrar, Peddapalli and Others.,l followed by another Divisior-r Bench of this Court in W.P.No.38125 of 2018 dated 14.IO.201,9 and requested to direct the respondent No.4 to register the Sale Certificate issucd by the petitioncr company in favour of the respondent 1No.6. \__ ' ro r8 15) .,u. f 17..r o \V I'.Nr, I15,-11 of 2015 S

7. ()n 1he othcr hand, leamed Assistant (iovcr-nmcrrt Plcaclct' for Starnps alld Registratior-r strlrnrits tlrirl :rs 1tc'r- tlrc- orclcr diitcd 27 09-2019 in L.\.No.l!)0 ol'-2Ol!.t in AC[, No 1(]5 oi 2Ol.). thc 4n, n:sponclt-'rrt lrzrs crrLcr-r:c1 thc srrbjcct propertv in prohibitorr- list trnd in vier.r. of thc provisions of the Registratirtn Arr1. I ()OB. thc rcspor-rdctlt No.4 is not ernpou,'crcrI to clcrlcrr: thc sub.jcct i)ropelt-\. lrom thc prohibitolv iist anrl reclucsteci to disrnrss the Writ Pctitron

8. Lciirncd r:ounscl for the responder-rt No.5 has uot clisltulr:cl tlrc crclcrs parssccl b1, this Court in Citg Union Bank Limited (sirpr-a 1), but rr:qucsted to dire cl tl-rt: pct ttronet--compilny, to pay' the surplus monev, il arx, rernains out ol the auction sa,le proceccis, :rftr:r arljustmcnt of thc er-rtirc lozrn amount, to tl-r c rcspondent No.5 and he relicd on the unreported juctgrnent parssed by a Division Bench of G 7 sK..l W.l'.\o.12573 ot l0l5 this Court in the Union Bank of India a, State of Telangana and other*

9. After' hearing both sides and perusing thc material available on rccorcl. this Court is of the considerecl vieu, that thcre is no dispute with regard to the mortgage of thc subject property by the borrou,cr r.r,ith thc pctitioner-company and also the proceedings initiated by thc petitioner-company 2is per SARFAtrSI Act against the borrower referred to above. The said borrower has availed loan by mortgaging the subject property tvith the petitioner- company. The petitroner-company by following the procedure AS contemplated under SARFAESI Act taken over possession of the subject property and issued Sale Certificate in favour of the respondent No.6. Now, the respondent No.4 has refused to remove the subject property lrom the prohibited list and register the Sale Certificate on the ground that sp.rvo,zzsrg of 202,1 dated 12 12-2lo'24 s \\' I'} No lliltl o1202-5 s therc is attacrhmcrlt ()rcler in resl)ect of the subject properl-\' I;r' slatirr.q tlrat r-inlcss ilnd until the said atLachnrenl or(lcr is vilc.,ltcd. it crnnot bc possiblc to registor thc Szrlc Ccrtif'icatc. 'll-rc said contcntion o[ thc rcslron<ietrt No..l is contrar'\, to Lhc O|clcr-s passeci b1' this Cor-rrt irr Citg Union Bank Limited. (supr:r 1) 1O. 'l'he rck'vanl portioLt o[- ti-re Judgment 111 Citg Union Bank Lirnited (sultra 1 ) is as fol1ou,s "8. It i.s rrecrlles-s l.o oltst,-rue tl rtt tLLe cit'il Couft has no.junsdiction to cletrl turtlr sult.jec't rttalters pertaiirtg to fhe SARFAI)SI Act. ht the prescn-t :;cenario, tl'te secured creditor u)as not a l)artrl to th.e r:iuil suits before the Cottrts beloru orrr/ f/trrs llt, ortlers of attachnrent before judgtrtr:rtt are tu)t bitLcl tg otL tlrc secured creditor/ Batit. L[ore so, tht,caLtse o.l' a.clron. lrcJon, th.e (loufts belou.,is t to t u-t it I t i t t i rc a r t t I ; il ol' Si1 l?t H l,-S1,1 cf . 9

10. Uporr f uir r<'crdurcl of S.O. ) 19 itt tlrc light of Secfiorr 64 of CPO. l.lis Cttrtrt is ol tlte uieu' tlrat it ortly pertais to a cii,il clispula ltehtteert the pnuate parties anrl it doe:; rtol irtcltule rur trtsttttttiottaL sale urtder cL stcttut?. 'L'h<tuglt Secliorr (t4 cornes ito platl ottlq after the altettctlion of the propertl1 rut.der attctchmettt atnongst the pr iuat<: per.sorz-s, thc said le,gal positbn dor:s ttot creot? att enbargo ultort the llcgistrar to proceed with the registratiott of srtle certificates uttdr:r fhe SARFAIiSI At:t as the banlc is not a pafty to t.he suit ancl tle sale is rtot beiry1 effeck:rl by a party to the attachment order. 11 G 9 sK..l \Y.P i\o. I2578 ol lt)li 1 2. ln sintilar circurnstcutces, tlrc Kerala High Courl in The South Indian Rank Ltd. u. The Sub RegisLrar (3) WP ((:) No. 3875 of 2017 dated 24.1 l.2L) 16, Lrtttsrderecl tle qttestion ruhether o saLe cerlifcate is hablc to l)e registered or rtot in uiew of the order of attacltrnert before judrlrn"eri passeri by lhe ciuil Couft cutd lu'lcl thal llte secured credrlor is enlitled to proceed witlt the rcllistrcltiotr and the Registration Authority carirrot' .stall tlrc process o.f regltstratiort under the garb of att order of attaclurtent passed bg the ciuil Cour1." 1 1. The above said fincling ol the Divrsron Bench of this Court u,oulcl squarely apply to the instant case and the Registration Authority cannot stall the process of registration of the Sale Certificate on the ground of attachment orcler L2. The relevzrnt portion in para Nos.3 and 4 of the order relied on bv the learned counsel for the respondent No.5 in the Union Bank of India (supra 2) is extracted as under; "3. Learned counsel for the parties jointly submit that the controversv involved in the instant petition is squarely covered by an order dated 19.12.2018 passed in W.P.No.44O14 of 2018. l0 sK, \\' P Ni, lliTS of20l5

4. lielcv:,rnt cxtract of tl'rc order datcd 1!).12.2O'8 lrtrssccl rn W.P.Nr. 41014 tf 2018 r-cads as r t ndcr: '-'l lrcr-r'for-r', llrrr rr rit lxrlrtioll is clispost rl o1' clire ctinq tht Sttlr Rcg;strar to rcgistcr tlte slrlc t'crtil-ir:rlr'. [Jortcvt:r, if :ri'tcl irdjustir)cr)t of tl:e crrtirt: 1o:rr-t ;rm )unt. rit-r strr'1,lrls nl ,lr'\ t, rt;ritts out of ll're ilLlcrlion sal<' lrroceccls, the Bank shall nol lr:rv rl (o thc 7tl'r respondcnt borro',r,er but slr:rll pitr it to thc 5tlr rcsllond('lrt-co:np;rn\', aftcr notiL-e to thc 7th responrl,'nl . 'ltrcre u,ill Ite rro orrler ils lo cosls."

13. In tl-re inst:rnt casc irlso, thc petilroncr- c()lxpany follorved SARFAIISI Ac' ir.r resipcct ol the subject property and the Salc Ccrtilicate \r.as issucd in favour of thc respondcnt No.6. In view of the scttled lau,, thr: responclent allthoritics havc no po\t/er to re fuse the registration o[ the Srrle Cert ilicate under SARI,-AtrSI Act on the glound ol' attachment ordcrs obtained from the Civil Court or irnv othcr authorities for the same property. In vieu' of the sarnc, the Registering Authority has Lo clele te the subje ct property from the prohibitory list for rcgistration of the Sa,le Certificate issucd by thc petitioner-company '! I I ! ! I e s K.., U' I' \o 11576 ol l()15 in favour of thc respondcnt No.6 without taking into account the attachment order dated 27-O9-2O19 in I.A.No. 190 of 2019 rn ACI) No. 195 of 20 19.

14. In vieu' of tl.rc above findings, the Writ Petition is disposed of directing thc Respondent No.4/the Sub Registrar-, Registration & Stamps, Office of the Sub-Registrar, N4arreclpally, Secunderabad, to remove the subjcct propcrty from the prohibitcd list, and register the Sale Certificate issued by the petitioner-compal-ry in favour of the respondent No.6, without referencc to tl-rc Attzlchment Order dated 27-O9-2O19 in I.A.No.19O of 2019 ir-r ACP No.195 of 2Ol9 passed by the Depr-rty Registrar of Chits/ Arbitrator, Vijayau,ada. Hou,ever, if after adjustment of the entire loan amount, any surplus money remains out of the auction sale proceeds, the petitioner-company shal1 not pay it to the borrower, but shall pay it to the respondent No.5, after giving notice to the principal borrower. ) \\.P No 115?\ 012025 SK

15. ;\ccor-dingl1., the Writ Petition is disposed o1-. Tllcrc shall bc no orcler ils to costs. l6 N4rst:ellancous pctitions pending, if eny, slrall irlso staricl closccl SO/. AH AE MED ABDULLA KHAN SISTANT REGISTRAR \ ) \ ECTION OFFICER //TRUE COPY'

2. The Comm ission and lnspector General, 1 The PrinciPal Secretary Stamps and Regrstration Department, Secretariat, Telangana S tate, HYderabad Stamp s and Registratlon Department, 5 3-953, NizamShahi Road, N,4ojaml ahi tt/ arket. Herza Estate, Risa laAbdula h ColonY, Jambagh Hyderabad -5000 95. Telangana 3 The District Reg istrar,, Reg istration and StamPs' District Registrar Office Registration and Stamps' OfficeoftheSub-Registrar' BhaN ani Nagar, MoosaPet, H yderabad, Telangana .500018 istrar, 4 The Sub-Reg MarredPallY' S ecunderabad

5. One CC to SRI T SASI KUMAR' Advocate IOPUCI 6. Two CCs to GP FOR STAIvIPS AND REGISTRATION' " siaie or Telangana [OUTI 7 One CC to SRI P DURGA PRASAD' Advocate lOPUCl B. Two CD CoPies BSK A5 l:,\'l- High Court for the To, I I i I I i I I I ! I TI I i t I ! I t I i I I ! t I HIGH COURT DATED:21 11112025 /)>' (bR 1 o i,{ l.g' 2 3 rtf,q i, * 2- I t ORDER WP.No.12578 of 2025 DISPOSING OF THE WRIT PETITION WITHOUT COSTS t ogrc l 4F 0h., ?. lz\ J.b I t I I r I I I i I E i