SUNDARAM HOME FINANCE LTD (FORMERLY KNOWN AS SUNDARAM BNP PARIBAS HOME FINANCE v. STATE OF KERALA

THE DEPUTY TAHASILDAR (RR) ALUVA TALUK, GROUND FLOOR, MINI CIVIL STATION, FIRST FLOOR, MINI CIVIL STATION, CIVIL STATION RD, PERIYAR NAGAR, ALUVA, ERNAKULAM, PIN - 683101 THE VILLAGE OFFICER ALUVA EAST VILLAGE BRIDGE ROAD, PERIYAR NAGAR, KOCHI, ALUVA, KERALA, PIN - 683101 D.JAYACHANDRAN S/O DAMODARAN, VALAMPARAMBIL HOUSE, VIDAKKUZHA ALUVA, ERANKULAM, PIN - 683106 SMT VINODINI JAYACHANDRAN W/O D.JAYACHANDRAN, VALAMPARAMBIL HOUSE, VIDAKKUZHA W.P.(C).No.40484 of 2023 2 ALUVA, ERANKULAM, PIN - 683106 7 THE CANARA BANK KALAMASSERY BRANCH KALAMASSERY REP BY ITS CHIEF MANAGER., PIN – 683563 GP - SHYNIMOL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No.40484 of 2023 3 VIJU ABRAHAM,J ----------------------- W.P.(C).No.40484 of 2023 --------------------------------- Dated this the 8th day of January, 2024 JUDGMENT Petitioner has approached this Court seeking a direction to the respondents 2 to 4 to forthwith erase/delete the entry regarding the initiation of revenue recovery at the instance of the 7th respondent through RRC No.2022/2705/2007 from the revenue records including basic tax register and all other relevant records to facilitate mutation in the name of the 2nd petitioner based on the registered sale certificate No.3389/2023 of SRO Aluva.

2. The 1st petitioner is a housing finance institution accepted security from respondents 5 and 6 and disbursed an amount of Rs.30 lakhs as loan on creating a security interest on

26.04.2014. Since the transaction became non performing on 31.01.2015 proceeding under the SARFAESI Act was initiated. The property was taken possession on 4.8.2015. Later on the property was W.P.(C).No.40484 of 2023 4 put to sale and the sale was confirmed in the name of the 2nd petitioner and Ext.P6 sale certificate was registered with the Sub Registrar Office, Aluva. When the matter was taken up with the Village Officer, the 4th respondent, for the purpose of effecting mutation, it was disclosed that revenue recovery proceedings are initiated at the instance of Canara Bank, Kalamassery branch which is the successor in interest of Syndicate Bank. It is to be seen that the amount sought to be recovered is not a crown debt, it is a bank debt and the amount payable is Rs.65,822/- and the debt became due only on 22.05.2017. The amount covered as per Ext.P7 is only subsequent to the mortgage in favour of the 1st petitioner.

3. The learned counsel for the petitioner would point out that the loan was sanctioned by the 1st petitioner on 26.4.2014 whereas the loan sanctioned by the 7th respondent was on 26.6.2015, which is subsequent to the loan sanctioned by the 1st petitioner. Petitioner relies on the judgment in Madhan S v. Sub Registrar, Kollam and Others W.P.(C).No.40484 of 2023 5 (2014 (1) KHC 249), in support of his contentions, paragraph 9 of the judgment reads as follows: “9. The preponderance of judicial opinion leads to the irresistible conclusion that the sale of the mortgaged property in favour of the petitioner under Ext. P5 sale certificate under the Act is free of all encumbrances. The attachments effected subsequent to the mortgage created in favour of the bank do not affect the title and ownership of the petitioner over the subject property. Such attachments have no impact on the sale conducted under the Act and the same ceases to have any effect or fall to the ground the moment the sale is confirmed in favour of the petitioner. The declaration so sought by the petitioner is therefore granted and I further direct the Sub Registrar and the Village Officer to efface the attachments effected subsequent to the mortgage from the relevant records. Otherwise those attachments would remain as a permanent taboo prejudicially affecting the marketability and title to the property even though they ceased to have any legal efficacy. The needful in relation to the property bought by the petitioner shall be done within a period of two months from the date of receipt of a copy of this judgment.”

4. Heard the learned counsel for the petitioner, the learned Standing counsel for the Bank and the learned Government Pleader also. After hearing both sides, in view of the categorical declaration of law in Madhan's case W.P.(C).No.40484 of 2023 6 cited supra, which is followed by this Court in other judgments, I am of the opinion that the petitioner is entitled for succeed. Therefore, the writ petition is disposed of with a direction to the respondents 2 to 4 to forthwith erase/delete the entry regarding the initiation of revenue recovery at the instance of the 7th respondent through RRC No.2022/2705/2007 from the revenue records including basic tax register and all other relevant records to facilitate mutation in the name of the 2nd petitioner based on the registered sale certificate No.3389/2023 of SRO Aluva, within a period of one month from the date of receipt of a copy of the judgment. sd/- VIJU ABRAHAM, JUDGE W.P.(C).No.40484 of 2023 7 APPENDIX OF WP(C) 40484/2023 PETITIONERS' EXHIBITS Exhibit P1 Exhibit P2 Exhibit P3 Exhibit P4 Exhibit P5 Exhibit P6 Exhibit P7 Exhibit P8 Exhibit P9 Exhibit P10 Exhibit P11 TRUE PHOTOSTAT COPY OF THE DEMAND NOTICE DATED 01.02.2015 ISSUED BY THE 1ST PETITIONER TRUE PHOTOSTAT COPY OF THE POSSESSION NOTICE DATED 04.08.2015 TRUE PHOTOSTAT COPY OF THE JUDGMENT DATED 04.01.2023 IN W.P.(C) NO.43009/2022 TRUE PHOTOSTAT COPY OF THE LETTER DATED 02.05.2023 SUBMITTED BY 6TH RESPONDENT TRUE PHOTOSTAT COPY OF SALE NOTICE DATED 11.10.2023 ISSUED BY THE 1ST PETITIONER TRUE PHOTOSTAT COPY OF THE SALE CERTIFICATE DATED 01.11.2023 ISSUED BY THE 1ST PETITIONER IN FAVOUR OF 2ND PETITIONER TRUE PHOTOSTAT COPY OF THE DEMAND NOTICE DATED 26.03.2022 ISSUED BY THE RESPONDENTS 2, 3 AND 4 TRUE PHOTOSTAT COPY OF THE CERTIFICATE DATED 14.11.2023 ISSUED BY THE VILLAGE OFFICER TRUE PHOTOSTAT COPY OF THE LETTER OF REQUEST SUBMITTED BY THE PETITIONER ON 16.11.2023 TO THE RESPONDENTS NO.2 TO 4 TRUE PHOTOSTAT COPY OF THE ACKNOWLEDGMENT CARD SIGNED BY THE 2ND RESPONDENT ON 18.11.2023 TRUE PHOTOSTAT COPY OF THE ACKNOWLEDGMENT CARD SIGNED BY THE 3RD RESPONDENT ON 18.11.2023 W.P.(C).No.40484 of 2023 8 Exhibit P12 TRUE PHOTOSTAT COPY OF THE ACKNOWLEDGMENT CARD SIGNED BY THE 4TH RESPONDENT ON 18.11.2023