The High Court · 2025

The State of Telangana, Represented by its- Special Chief Secretary to Oor"-tnrnlnt of Telingana (For Revenue), Secretariate, Hyderabad- The District Collector, lntegrated District Office Complexes, Sangareddy' Sangareddy District, Telangana 502001 - The Commrssioner and lnspector General of Registration and Stamps' 5-3- gS5 n"oittotion Bhavan +tfr-anO 5th Floor, Nizbm Shahi Road' Osmangunj' M.J Maiket, Hyderabad. Telangana 500001 The Drstrrct Reqrstrar, Sangareddy District. Door N-o 4-8' 3B/A and B' rvti""r""o il,gii.-ri na i sa"ngaredbv TeIangana 50200 1 I nd ia' The Sub-Registrar, Sangareddy -Q99r.N.o -4 Kandi Sanga"reddy. Telangana 50200'1 . lndia Mr Sved Ali. S/o Late Sved Sikander Ali, Aged about 36 Years' Occupation' ii;";L"t:'ii ir; V;;6t*wara colonv, P-atancheru rown and Mandal' Sangareddy District, Telangana - 502 319 Smt. Habeeba Begum, Wo Syed Ah, 13-126, Venkal-eswara Colony' ^.^ F;i;.h;;, 1;wn"and tvlandi( Sangareddy District, Telangana - 502 319 M/s Shriram finance Ltd , Rep by its General Power of Attorney Holder' Mr' V rvrr"rrriJnJi D 86, A Squate ptaiazna floor, opp Lingampally bus stop' LingampallY, HYderabad TS 500 050 R8 is impleaded as per C O. dt 22 09 2025 in lA' No 212025 B, 3B/A and B, Manjeera Nagar' ...RESPONDENTS --7 Petitrorr under Article 226 of the Constitutron of lndia praying that in the circumstances stated rn the affidavit f rled therewith ' the High Court may be pleased to issue a dlrection crder or more particularly one in the nature of Writ of [\4andamus Drrecting r he resF,o.dent no 5 sub-Registrar. Sangareddy to delist the RCC HOUS[ No l3-126' constructed on open plot admeasurrng area 98 Sq' vards or 81 I Sq. l\4trs Havrng Plinth area of Ground Floor 638 Sq Feets Roof Srtuated at 13th Ward and Block Venkateswara Corpty' r:overed wrth R.C C Patancheru l\4unrcipal Under Greater Hyderabad Corporatton of Patancheru Town Drstrrct. Telangana State from the prohibitory list and Mandat. SangareddY 22( A) ot the lndian Registration Act rn the interest of maintatned under Section J ustice. IA NO :1OF 2025 Petition undr:r Sectton 151 CPC praying that in the circumstances stated In the affidavrt filed rn support of the petition the High Court may be pleased to suspend the ad rnterinr inlunctron orders of attachment orders dated 2610412025 ol Arbitrar Tribunar of Sole Arbitrator at Hyderabad, Smt. Dr. D. Sarara Kumari Flat No 405.4th Floor, Vqay Vihar Apartment Street No 2' Green Hills Colony' Beside Vrctoria tvlemoriar Metro station, Kothapet Hyderabad - 500 1 o2 attachrng the nrortgaged property / secured asset ln the interest of 'iustice Counsel for the Petitioner: SRI V' U S' S' R' ANJANEYULU Counsel for the Respondents No 1 To 5: SMT S' SRAVANTHI AGP FOR STAMPS & REGISTRATION Counsel for the Respondents No 6 To 8: ---- The Court made the following: ORDER .-,/ -_ ,/./ THE HON'BLE SRI JUSTICE K.SARATH WRIT PETITION No.27664 of 2025 ORDER Heard Sri \/USSR Anjancl'ulu, learned Counscl for the petitioner, Smt S. Sravanthi, learned Assistant Government Pleader for Stamps and Registration and perused the material on record

2. In spite of service of notice none appeared for the rcsponcient Nos.6 to 8

3. This r,r,rit petitron is lilcd seeking to direct the respondent No.5/Sub-Registrar, Sanga Reddy, to delist the RCC House No.13-126, constructed in the open plot, admeasuring to an extent of 98 Sq.Yards, having plinth area of Ground Floor 638 Sq.Yards, Roof covered with RCC, situated in l3trr Ward and Block, Venkateswara Colony, Patancheru Town and Mandal, Sanga Reddy District (hereinafter referred to as 'subject property'), from the Prohibitory List maintained under Secton 22-A of the Indian Registration Act. l !-\: SK, J W.P.No 27(164 of 202 5 'lhe learned counsel for the petitloner submits that

4. 2 thc lesponrlent No.6 has availed a mortgagc loan of Rs l-1 ,13.\)3-; I or) 22.11.2021 fr.om the pt'titioncr Fir-ulnce ( orrrpnar,. bv mortgaging thc subjcct propert\'. anrl r-espor-rcient No.7, bcing the u,ile ol the rcspondent No.6 has also cxL'cutcd securitv documents, clcclarations etc.. in lzrr,or-rr oi' the petrtioner-conr panv. Aftcr zrveriling thr' loan. thc respondent Nos.6 and 7 herve committecl br,'ac:h o1' tcrms ar-rd conditions o[' thc loan agreemcnt anrl bccarnc dcfaultcrs ir-r payment ol inst:illmcnts. The pclitioner Bank. bcing a secured creditor. has initiatcd procccdir-rgs againsl the rcspondcnt Nos.6 and 7 under Scctrr-rn 13 (2) of Securitization and Rcconstruction ol Finiurcial .{ssets ancl EnlorcemenL oI Securitv Intercst Ar:1. 2022 ( lor short 'SARFAtrSI Act') derranding them to pav Rs 15,62,380/- u'ithin 60 days lrom tl're date of receipt ol the notice. Having reccived the said notices, the respondcnt Nos.6 and 7 failed to iiquidate the debt, t. tlterelore the petitoner Bank constrained to issue notice under Section 13 (a) of the SARFAESI Act by publishing 3 SK, J W .P.No.27664 ot 2025 notice in English and Teiugu Newspapers

02.1O.2021. Thereafter, thc petitioner-Bank liled a petition under Section 14 of the SARFtrASI Act, before the XVI Add1. Chief Metropolitan l\4agistrate for taking possession of the subject property and accordingly the said petition u,as allou,ed 30.08.2024 and the possession of the subject propert-v r.tas taken ovcr by thc petitioner- company through an Advocatc-Commlssroner on

09.oL.2025.

5. The learned Counsel lor thc petitioner would further submit that in the E-Auction one Mr.MD Rafeeq became successful bidder and Sale Certilicate was issued to him on O9.O7.2O25. When the petitioner- compnay approahced the respondent No.5 for registration, it was lound that the subject property was listed in prohibited list on the basis of the Arbitral Award passed by the respodnertt No.5 in ARB No.45212025 in I.A.No.l of 2025 dated 26.O4.2025 and in view of the same, the petitioner compnay is unable to 4 SK,.J W. P. No.27664 of 2025 complete thc registr.ation process in favour of the biddcr - in the public :luc1io rr

6. '11-rc lc:rnrt:cl Cour-rscl for thc pctilior-rer u,oulci lurthcr subrnil litirt. thc petitioncr Bank is a sccurccl crcdjtor haring f irst charge ovr:r the subject propcrtv fro n.r 202 I and thc aLtachment is clfectcd subscquent to thc rrrorls:rqc in tht'-r,ear, 2025, which u'ill not itffect the rights of 1lrc sc<:r-rlr:d credltor over thc sub.jecl propertv anrl hrrll-rcr suc:lt atLachments have no impact on thc saic thal rr otl1r", lrt' r:onducted ur-rder the Act The pelitioncr-Bank is neither party to thr: proceediugs ir-ritiatcd lx' Shrir.arn Finance Ltd.. and thcrcforc sard atlachmcrrt is not binding on the pr: titioner' 7 . l,eirrncd counsel lor thc petil ioncr hrrthcr submits that the action ol respondent No.3 in not removing the subject properl-v lrom the prohibited list is contrary to tl.rc C)rders passed by this Court in Citg Union Bank Limited Vs Sub Registrar, Peddapalli and Ors.,l and thc samr: u-as follorved by another Division Bench of this .' zo I r 1:,1 a rr u;. 5 SK, J W.l'.No 27664 ot 2025 Court in W.P.No.38125 of 2Ola dated 14.10.2O19 and requested to direct the respondent No.4 to register the sale certificate lo be issued b]' th" petitioner Bar-rk in lavour of the Auction Purchaser B. Or-r the other hand, learr-red Assistant Government Pleader lor Stamps ar-ld Registration submits lhat as per the order dated 26.04.2025 in I.A.No.l ol 2022 in ARB No.452 of 2025, thc subject property is under atlachment and kept in the prohibited property list on the basis of Attachment Orde rs. The sale certificate to be prescnted by the petitioner cannot be registered until and unless the said Attachmer-it Orders are sel aside

9. Learned Assistant Government Pleadcr lor Stamps ancl Registration wouid further submits that though the sale certificate is under SARFAESI Act, it cannot be registered as the property involved in the sale certihcate is already in prohibited list on the website of the IGRS and requested to dismiss the writ petition. \ 6 SK..J W.P No.2766.1 o1 2025 10 After hr:arir-rg both sides and perusitlg the material on n:cord. this Coult is ol thc considered vieur tl'rat thet-e is no 6{is11111c u'ilh r.egarcl to the proceedings ir-riti:rted b-r, thr: pctitioncr Brrnk as per SARFAtrSI Act agair-rst the resllondcnl No.6. TIre r<:spondent No.6 has avaikrd loan bv nrortgaeir-rg tlre sr-rbject propertl, with tl-re pctrtioner- Bank in thc vcar-. .1021 . Thc petitioner b1 follos,ing the proccclur-e as cont('ntpLated under SARFAESI Act taken ovor posscssron ol thc subject property and salc certificate h:rs to bc issucd in favour of the Auction Ptr r,. h:rst:r. Nor,,'. the rcspondent No.4 has rclused to re tI o\'(l thr: sultjcr'1 l)ropcrty from the prohibitcd list on Lhc glounrl t[-rat lhcrc is attachment Order with rcspcct to t)re srrb.lect pr()l)crty and until the same is vacitted, it calrtot bc possibkr to register the sale certificatc to be issucd in favour of Auction Purchaser. The said corltelrtion of thc rcgistering authority is contrary to thc Orders Iimited passed by this Court in Citg tlnion Bank Vs Sub Registrar, Peddapalli dnd Ors. (supra 7). 7 SK, J W.P.No.27664 ot 2025 1 1. The relevant portion of the Judgment 1n Citg Union Ba,nk Limited Vs Sub Registrar, Peddapalli and Ors. (supra -I/ is as lollorvs "8. It is needless to obserue tlutt the auil Courl hcLs no jurisdictron to rleal tultlt subject itotters peftainirLg to tlrc SARFAESI Act. In the present scenario, the seared creditor was not a parlA to the ciuil suits before the Courts belo,-Lt and thus the orders of attachmat before judgment are not bbtditg on the secured creditor/ Bartk. More so, the cause of actiort before the Courts belou is not LuilltirL the dmbit of SARFAESI AcI 1O. Uport fair reading of S.O. 219 in the light of Section 61 of CPC, this Coun is of the uieut tlrul it only pertatns to a ciuiL clispult' betuteen the piuate parlies artd it does rrct include arr itstrtutional sale urtder a stetute. Tltough Sectiort 64 c:ornes irtto play onlg alter the alienatiort of the properlll under ctttachrnent amongst the piuate persorls, tle sclkl legal position does not create an etnbargo upon the Registrar to proceed utith the registration of sale certificates under the SARFAESI Act as the bantk is not a patlg to the suit and the saLe is not being effected bA o potla to the attachtnent order.

12. In s[milar circumstances, the Kerala High Court in The South [ndian Bank Ltd. u. The Sub Regtstrar (3) WP (C) No 3875 of 2017 dated 24.11.2016, considered the question whether a sale certificate is liable to be registered or not tn uieut of the order of attachment before judgment passed by the ciuil Couft and hetd that the seanred creditor is entitled to proceed with the registration ancl the Registratiotr Authonty cannot stoll the process of registration under the garb of an order of attachment passed by the ciutL Court." The above said finding of the Division Bench of this Court would squarely apply to the instant case arld the Registration Authority cannot stall the process of -r SK, J W.P No.27664 of 2025 registratior-r of the sale certificate in vieu, of the 8 attachmetrt order' l2 lrr l1tI irrstitrit crztso also. thc pelitior-rcr Bank follorr.<:cl S,\lil.'AE,SI Act ir-r lespect o1'the subject propt: rt\- ancl s:rlc crrrtifit::rtc has also issucd in favour of the Auction Pur chascr-. In vicw ol the settled larv. the respondcnt authrtritics hzu,c no powel to refuse the reqistr.atior.r ol tlrc strle c:cr.tificate under SARFr\IISI Act on l lrc grou nrl bf attachmcnt orde ls lrom the Civit Court or olhcr aulh()rlri('s lor thc same property. In vierv of the samc, thc Ilegistcrrng Authority h:rs to register thc sale ccrtrficatc to lre tssr-rt:d bv thc petiLioner-Bank in lavour of tlre .{rrr:tion I)Lrrc:lraser u ithout taking into account ol thc attac:hnrent rrrclcr dated 26.O4.2025 in I.A.No.1 ol 2O2:t nt {RB No..i52 ol 202i>.

13. [n vinv of thc above findings, the Writ petrtiotr is disposec[ of directing the Registerir-rg Authority to remove thc subject propcrty from the prohibited list, nithout relercnce to the Attachrnent Orcler clated 26.O4.2025 ir:. 9 SK, J W.P.No.27664 ot 2025 I.A.No.l of 2025 in ARB No.452 of 2025, enabling the petitioner Bank to proceed further rnith the sale of the subject propertv in pur-suance of SARFtrASI proceedings. t.+. Accordinglv, the Writ petition is disposecl of. There shall be no order as to costs. Misceilaneous petitions pending, if any, shail also stand closed. SD/.K.BHAVA NI SWAMY A S ISTANT REGIS 4 //TRUE COPY// SECTION OFFICER \, To, 1 2 3 4 5 Cr 7 \ ana (For Revenue), The Special Chief Secretary to Government of Telan-! State bf Telangana, Secretariate, Hyderabad. The District Collector, lntegrated District Office Complexes, Sangareddy, Sangareddy District, Telangana 502001 The Commisstoner and lnspector General of Registration and Stamps, 5-3- . gSJ nEgisttrtion Bhavan,4th and 5th Floor, Nizam Shahi Road, Osmanguni, M J fvlarket, Hyderabad, Telangana 500001. The District Registrar, Sangareddy District, Door N-o.4-8, 38/A and B, Manjeera Naga-r, Kandi SangarediJy, Telangana 502001 ' lndia' The Sub-Registrar, Sangareddy, Door No.4-8' 38/A and B Manjeera Nagar' Kandi Sanga"reddy. Tela-nga na One CC to SRI V. U S. S. R .ANJANEYULU, Advocate [OPUC] Two CCs to GP FOR STAMPS & REGISTRATION , High Court for the State ofTelangana at Hyderabad . [OUT] '502001 . lndia. Two CD Copies I DAN I}S w HIGH COURT DATED:1311112025 i.' HE STAfL o 2 I t{lfl ?|]?fi ,'.1;ti -ll lz7 * ORDER WP.No.27664 of 2025 \J C C) * DISPOSING OF THE WRIT PETITION WITHOUT COSTS \\ .tPrc': X#'