9911796707
TMI Blog2023 (8) TMI 1365X X X X Extracts X X X X X X X X Extracts X X X X ..... hat there is a mortgage executed in favour of the fifth respondent bank. Therefore, the fifth respondent being the secured creditor under the SARFAESI Act and the security interest being duly registered, by virtue of Section 26E of SARFAESI Act, 2002, it is only the claim of the fifth respondent bank which has priority. On account of the amendment to the SARFAESI Act, 2002, the attachment of the commissioner of CGST and Central Excise as well as the attachment under the arbitration award will stand valid if only any money which is left over after the satisfaction of the entire loan due to the fifth respondent bank. Therefore, once the fifth respondent bank exercises its power of selling the property through the Authorized Officer, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t respondent shall register the same in accordance with law more specifically without reference to any of the attachment orders or encumbrances that may reflect in the records. Petition allowed. - Honourable Mr.Justice S.S.Sundar And Honourable Mr.Justice D.Bharatha Chakravarthy For the Petitioner : Mr.R.Murali for Mr.T.N.Karthikeyan For the Respondents : Mr.J.K.Jeyaseelan Government Advocate for R1 No Appearance for R2 to R4 Mrs.Ananda Gomathy for R5 Mr.N.Dilipkumar for R6 Mr.A.P.Athithan for R7 ORDER The petitioner company is an auction purchaser of the property in the nature of plots in Uthangudi village, Madurai North Taluk, Madurai North Registration District in R.S.Nos.149/4A1, 149/4A3, 149/4A and 148/2. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , learned counsel appearing on behalf of the sixth respondent and Mr.A.P. Adhithan, learned appearing on behalf of the seventh respondent. 4. On perusal of the material records of the case more specifically the encumbrance certificate it is clear that there is a mortgage executed in favour of the fifth respondent bank. Therefore, the fifth respondent being the secured creditor under the SARFAESI Act and the security interest being duly registered, by virtue of Section 26E of SARFAESI Act, 2002, it is only the claim of the fifth respondent bank which has priority. Section 26E of SARFAESI Act, 2002, is extracted hereunder for ready reference: Section 26E: Priority to secured creditors. 26E. Notwithstanding anything contained in any ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Limited and Others [2023 (3)SCC 210] and it is useful to extract paragraph No.32 which reads as hereunder: ....32. At this stage, the object and purpose of the enactment of the SARFAESI Act is required to be considered. The SARFAESI Act has been enacted to regulate securitization and reconstruction of financial assets and enforcement of security interest and to provide for a Central database of security interest created on property rights, and for matters connected therewith or incidental thereto. Therefore, the SARFAESI Act has been enacted providing specific mechanism/provision for the financial assets and security interest. It is a special legislation for enforcement of security interest which is created in favour of the secured c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Sub Registrar. The learned counsel on either side would not dispute the said legal position that similar reliefs has been granted in several other decisions also. 8. In view thereof, this writ petition is allowed on the following terms: (i) The writ petitioner shall once again present the sale certificate dated 22.11.2022 before the first respondent for registration within a period of two weeks from the date of receipt of a copy of this order. Upon such production, the first respondent shall register the same in accordance with law more specifically without reference to any of the attachment orders or encumbrances that may reflect in the records; (ii)The first respondent shall also show the entries of attachments vide Documen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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