Andhra Pradesh High Court - Amravati
Karur Vysya Bank vs The State Of Andhra Pradesh on 17 June, 2021
Author: M.Ganga Rao
Bench: M. Ganga Rao
1
THE HON'BLE SRI JUSTICE M. GANGA RAO
Writ Petition No.6001 of 2021
ORDER
This Writ Petition is filed seeking to issue a Writ of Mandamus declaring the action of the 2nd respondent in non furnishing fee details and entertain sale certificate seeking to be issued by the petitioners Bank on the ground that the entire land in Sy.No.1996 to an extent of Ac.2.35 cents situated at Udayagiri Road, Kavali Bit II of Kavali Town and Mandal, Nellore District is kept under prohibitory properties amounts to erroneous, arbitrary and violative of Articles 14 and 21 of the Constitution of India and consequently direct the 2nd respondent to issue fee details and process the sale certificate proposed to be submitted by the petitioners Bank for registration in respect of property in Sy.No.1996/1B; 2nd floor, D.No.10-16-22, Flat No.C 302, Sri Sai Meadows Apartments, 10th ward, situated at Udayagiri Road, Nellore District.
Heard learned counsel for the petitioner and learned Assistant Government Pleader for Registration and Stamps appearing for the respondents.
The case of the petitioner is that he is the Manager in Writ Petitioner's Bank. One Shri Pabbisetty Subharao who is the sole proprietor of M/s.Venkata Syamala Textiles, Shop No.50, APC Market, Kavali approached the bank for sanction of loan on Deposit of Title Deeds in Sy.No.1996/1B, 2nd floor, D.No.10-16-22, Flat No.C 302, Sri Sai Meadows Appartments, 10th ward, Udayagiri Road, Kavali Town and Mandal, SPSR Nellore District. The then Branch Manager after satisfying 2 the documents placed by the borrower sanctioned and released the loan for sum of Rs.15,00,000/- in the name of M/s.Venkata Syamala Textiles. The borrower failed to repay the loan amount, became defaulter and the loan account was declared as NPA. Despite service of two notices neither the borrower nor guarantor satisfied the debt. Under the said circumstances, the Bank finally issued presale notice dated 05.11.2020 under Rule 8(5) of the SARFAESI rules giving final opportunity to the borrower to pay the outstanding amount of Rs.23,38,845.89/- within 30 days from the date of receipt of the notice. Further E-auction dated 21.01.2021 was conducted for the residential Flat No.C302, Sri Sai Meadows Apartments, 10th ward, Udayagiri Road, Kavali Town and Mandal, SPSR Nellore District. One Shri Bhaskaruni Badrinarayana, R/o.Door No.7-4-8E/3, Kavali Town, Nellore District is declared as successful bidder for sum of Rs.32,32,000/-. The bidder remitted Rs.2,80,700/- at the time of participation of auction and remitted Rs.5,27,300/- immediately after the auction i.e on 22.01.2021. All together, the bidder remitted to the bank Rs.8,08,000/-. When the bank asked the bidder to deposit the rest of the amount, he asked to get fee particulars and other details from the 2nd respondent and when they approached the 2nd respondent office the 2nd respondent declined to issue fee details stating that the entire Sy.No.1996 is kept under prohibited properties list maintained under Section 22-A of the Registration Act as the land is Dotted land. Hence the present Writ Petition came to be filed.
Learned counsel for the petitioner submits that the registering officer is under statutory obligation to receive the document for registration, as per the provisions of the Act. If there is any objection for 3 registration of the document, the 2nd respondent is under statutory obligation to return the document duly endorsing the reasons for non- registration of the document as per the provision of Section 71 of the Act. Therefore, if a direction is given to the 2nd respondent to issue fee details and process the sale certificate presented by the petitioner, as envisaged under the provisions of the Act and the Rules made thereunder, the grievance of the petitioner stands redressed.
Learned Assistant Government Pleader endorses the said submission.
In the facts and circumstances of the case and submissions of both the counsel and on perusal of the record, this Court found that the action of the 2nd respondent in not giving fee details and receiving the sale certificate proposed to be submitted by the petitioners bank in respect of property in Sy.No.1996/1B; 2nd floor, D.No.10-16-22, Flat No.C 302, Sri Sai Meadowns Apartments, 10th ward, situated at Udayagiri Road, Kavali Town and Mandal, Nellore District is illegal. The 2nd respondent is under statutory obligation to issue fee particulars for registration of the sale certificate and receive the sale certificate for registration, if it is otherwise in order or otherwise, he has to pass a reasoned order under the provision of Section 71 of the Act giving reasons for not registering the document.
For the reasons stated above, this Court felt it appropriate to dispose of the writ petition.
Accordingly, the Writ Petition is disposed of directing the 2nd respondent to give fee details and receive sale certificate proposed to be presented by the petitioners Bank in respect of property in 4 Sy.No.1996/1B; 2nd floor, D.No.10-16-22, Flat No.C 302, Sri Sai Meadows Apartments, 10th ward, situated at Udayagiri Road, Kavali Town and Mandal, Nellore District., in favour of Sri.Bhaskaruni Badrinarayana and register the same if it is otherwise in order as per the provisions of the Act and the Rules made there under. In the event of his being not inclined to give fee particulars and entertain sale certificate, he shall pass appropriate orders as per the provision of Section 71 of the Act giving reasons for not issuing fee particulars and entertain sale certificate and communicate the same to the petitioner. The entire exercise as indicated above shall be done as expeditiously as possible but not later than two weeks from the date of receipt of a copy of this order. There shall be no order as to costs.
As a sequel, pending miscellaneous applications, if any, shall stand closed.
M.GANGA RAO, J 17.03.2021 tm 5 THE HON'BLE SRI JUSTICE M. GANGA RAO WRIT PETITION No. 6001 OF 2021 17.03.2021