The Karnataka High Court addressed the issue of a Sub-Registrar ...

Petitioner allowed to register the property purchased in auction sale case u/s SARFAESI Act. Precedence of SARFAESI Act over Income Tax dues confirmed.

Case Laws     Indian Laws

May 30, 2024

The Karnataka High Court addressed the issue of a Sub-Registrar refusing registration of a sale certificate due to pending Income Tax dues against the borrowers. The court held that the SARFAESI Act takes precedence over other statutory dues, including those of the Income Tax Department. Citing a Supreme Court case, it was established that the dues of secured creditors have priority over other dues. The Sub-Registrar's refusal based on Income Tax dues was deemed invalid as it exceeded the authority granted by the Registration Act and Rules. The court emphasized that Sub-Registrars must adhere strictly to the law and cannot refuse registration without valid reasons. It was recommended that the State issue necessary guidelines to prevent arbitrary refusals. The writ petition was allowed in favor of the petitioner.

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