The High Court
Case Details
IN THE HIGH COURT OF ORISSA AT CUTTACK (An application under Articles 226 and 227 of the Constitution of India, 1950) W.P.(C) No.39399 of 2023 Gopal Bagri …. Petitioner -versus- Sub-Registrar, Dolipur, Jajpur Road, Jajpur and others …. Opposite Parties Appeared in this case by Hybrid Arrangement (Virtual/Physical Mode): For Petitioner -
Legal Reasoning
passed by the Division Bench of this Court in W.P.(C) No.2795 of 2015, the head office of the O.P. No.3 issued a letter dated 04.06.2019 (Annexure-3) to the O.P. No.3 extinguishing the petitioner’s liabilities with respect to the above properties, those were mortgaged before the O.P. No.3 for the loan of the loanee. Accordingly, the properties of the petitioner covered under the sale certificate vide Annexure-1 were made free from its mortgage without any encumbrance in respect of the same. Thereafter, when the petitioner being the exclusive owner of the properties covered under the quashed sale certificate vide Annexure-1 W.P.(C) No.39399 of 2023 Page 3 of 7 wanted to sale the said properties to his prospective vendor and applied for encumbrance certificate, he (petitioner) found from the encumbrance certificate vide Annexure-4 that, the quashed sale certificate as per order passed in Annexure-2 is continuing as encumbrance against his properties covered under Khata No.380/5, Plot No.748, Ac.0.19 decimals under Sukinda Tahasil in the District of Jajpur and Plot No.747 Ac.0.18 decimals under Khata No.380/105 in the same Mouza. For which, the petitioner requested O.P. No.1 as per letter dated 11.10.2023 (Annexure-5 Series) for deletion of Annexure-1 as an encumbrance against his above properties, but when the O.P. No.1 did not respond to the same, then, without getting any way, the petitioner filed this writ petition against the O.Ps. praying for a direction to the O.P. No.1 for correction/deletion of Annexure-1 (quashed sale certificate) from the EC in respect of the properties of the petitioner vide Khata No.380/5 Plot No.748, Ac.0.19 decimals under Sukinda Tahasil in the District of Jajpur and Plot No.747 Ac.0.18 decimals under Khata No.380/105 in the same Mouza and to act on the Letter dated 11.10.2023 (Annexure-5 Series) of the petitioner. 5. I have already heard from the learned counsel for the petitioner, the learned Standing Counsel for the State (O.P. No.1) and the learned counsel for O.P. No.4. W.P.(C) No.39399 of 2023 Page 4 of 7 6. During the course of hearing, the learned counsels of both the sides did not dispute about the passing of the final order dated 20.03.2017 (Annexure-2) by the Division Bench of this Court in W.P.(C) No.2795 of 2015 in quashing the sale certificate dated 25.02.2015 (Annexure-1), which was issued in favour of the O.P. No.2 in respect of the properties covered under Plot Nos.747 & 748 described in schedule of the writ petition and there is also no material in the record to show about the variation/alteration or setting aside of the final order dated 20.03.2017 passed in W.P.(C) No.2795 of 2015. 7. It is forthcoming from the Encumbrance Certificate (Annexure-4) that, the quashed sale certificate vide Annexure-1 is continuing as an encumbrance against the properties of the petitioner in respect of Plot Nos.747 and 748 under Khata Nos.380/105 and 380/5 respectively
Arguments
Mr. B.N. Mohanty, Advocate. For Opposite Parties - Mr. G. Mohanty, Standing Counsel (for O.P. No.1) Mr. J.K. Mohanty, (for O.P. No.4) CORAM: HON’BLE MR. JUSTICE A.C.BEHERA Date of Hearing :16.04.2025 :: Date of Judgment :16.05.2025 A.C. Behera, J. This writ petition under Articles 226 & 227 of the Constitution of India, 1950 has been filed by the petitioner praying for directing the O.P. No.1 (Sub-Registrar, Dolipur, Jajpur Road in the district of Jajpur) to act on the Letter dated 11.10.2023 under Annexure-5 Series of the petitioner and to correct the entries in the books, so as to note the fact of quashing of the sale notice/sale certificate as per order dated 20.03.2017 under Annexure-2. W.P.(C) No.39399 of 2023 Page 1 of 7 2. The case of the petitioner is that, he was the guarantor for the loan incurred by the loanee from O.P. No.3 (Urban Co-Operative Bank Ltd., Cuttack) giving his properties covered under Khata No.380/5 Plot No.748, Ac.0.19 decimals under Sukinda Tahasil in the District of Jajpur and Plot No.747 Ac.0.18 decimals under Khata No.380/105 to the Bank (O.P. No.3) as securities for the said loan of the loanee. On account of default of payment of loan amount by the loanee, the O.P. No.3 (Urban Co-Operative Bank Ltd., Cuttack) enforced the above secured properties of the guarantor/petitioner under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter called as ‘SARFAESI Act, 2002’) and as per the said Act, 2002, the above properties of the petitioner were auctioned in favour of the O.P. No.2 Purna Chandra Samal and accordingly, a registered sale certificate bearing No.821500822 dated 25.02.2015 (Annexure-1) was issued in favour of the auction purchaser Purna Chandra Samal (O.P. No.2) and the same was registered before the O.P. No.1 (Sub-Registrar, Dolipur). On being dissatisfied with the above auction of the properties of the petitioner, he (petitioner) filed writ petition vide W.P.(C) No.2795 of 2015 before this Court challenging the above auction sale of his properties under SARFAESI Act, 2002 in favour of O.P. No.2 and also challenged the sale certificate bearing No.821500822 dated 25.02.2015 W.P.(C) No.39399 of 2023 Page 2 of 7 (Annexure-1) issued in respect of his above properties in favour of Purna Chandra Samal (O.P. No.2) much before the confirmation of the sale on the ground that, he (petitioner) was ready to pay the entire loan amount along with accrued interest thereon which was outstanding against the loanee and to release the auctioned properties as per Annexure-1 in his favour. 3. After hearing to the W.P.(C) No.2795 of 2015 filed by the petitioner, the Division Bench of this Court as per Order dated 20.03.2017 (Annexure-2) allowed that writ petition filed by the petitioner and quashed the sale certificate dated 25.02.2015 (Annexure-1) issued in favour of the O.P. No.2-Purna Chandra Samal in respect of the above properties of the petitioner. 4. In pursuance to the said final Order dated 20.03.2017 (Annexure-2)
Decision
(specifically described in the schedule of the writ petition) in the office of the O.P. No.1. 8. When, there is no indication about the quashing of the sale certificate dated 25.02.2015 (Annexure-1) in the EC vide Annexure-4, even though the sale certificate dated 25.02.2015 in respect of the properties of the petitioner covered under Khata No.380/5 Plot No.748, Ac.0.19 decimals under Sukinda Tahasil in the District of Jajpur and Plot No.747 Ac.0.18 decimals under Khata No.380/105 in the same Mouza has already been quashed as per order dated 20.03.2017 passed in W.P.(C) No.39399 of 2023 Page 5 of 7 W.P.(C) No.2795 of 2015 (Annexure-2) and when it was/is the duty of the O.P. No.1 (Sub-Registrar, Dolipur, Jajpur Road in the district of Jajpur) to indicate in the register of its office meant for issuance of the Encumbrance Certificate about the quashing of the sale certificate dated 25.02.2015 (Annexure-1) in respect of the properties of the petitioner described in schedule of the writ petition, then at this juncture, there is justification under law for issuance of a writ of mandamus to the O.P. No.1 directing the O.P. No.1 to make necessary entries in the register of its office meant for issuance of Encumbrance Certificate in respect of the properties of the petitioner covered under Khata No.380/5 Plot No.748, Ac.0.19 decimals under Sukinda Tahasil in the District of Jajpur and Plot No.747 Ac.0.18 decimals under Khata No.380/105 about the cancellation of the sale certificate dated 25.02.2015 in favour of the O.P. No.2 (Purna Chandra Samal) on the basis of the final order dated 20.03.2017 passed by the Division Bench of this Court in W.P.(C) No.2795 of 2015. Therefore, the writ petition filed by the petitioner must succeed. 9. In result, the writ petition filed by the petitioner is allowed on contest. The O.P. No.1 (Sub-Registrar, Dolipur, Jajpur Road in the district of Jajpur) is directed through issuance of a writ of mandamus to indicate in the register of its office meant for issuance of Encumbrance Certificate in respect of the properties of the petitioner under Khata No.380/5 Plot W.P.(C) No.39399 of 2023 Page 6 of 7 No.748, Ac.0.19 decimals under Sukinda Tahasil in the District of Jajpur and Plot No.747 Ac.0.18 decimals under Khata No.380/105 in the same Mouza about the quashing of the sale certificate dated 25.02.2015 as per final order dated 20.03.2017 (Annexure-2) passed in W.P.(C) No.2795 of 2015 within three days from the date of production of the certified copy of this judgment by the petitioner before the O.P. No.1. 10. Accordingly, the writ petition is disposed of finally. Orissa High Court, Cuttack. 16.05.2025//Utkalika Nayak// Junior Stenographer (A.C. Behera), Judge. Signature Not Verified Digitally Signed Signed by: UTKALIKA NAYAK Reason: Authentication Location: High Court of Orissa, Cuttack Date: 17-May-2025 11:35:24 W.P.(C) No.39399 of 2023 Page 7 of 7