Madras High Court
M/S. Karur Vysya Bank vs The District Registrar on 20 September, 2024
Author: N.Sathish Kumar
Bench: N.Sathish Kumar
W.P(MD)No.1069 of 2023
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 20.09.2024
CORAM :
THE HONOURABLE MR.JUSTICE N.SATHISH KUMAR
W.P(MD)No.1069 of 2023
M/s. Karur Vysya Bank,
Rep by its Authorzed Officer,
Senthilkumaran,
Asset Recovery Branch,
Mattuthavani-Melur Road,
Near Mattuthavani Bus Stand,
Madurai. ... Petitioner
Vs.
1.The District Registrar,
Registration Department,
Tenkasi District.
2.The Sub Registrar (Joint-I),
Registration Department,
Tenkasi, Tenkasi District.
3.The State Tax Officer (Collection and Arrear),
O/o.Deputy Commissioner (Intelligence Wing),
Central Board of Indirect Taxes and Customs,
Tirunelveli.
4.M/s.Chendur Enterprises,
Rep by its Proprietor,
S.Anusuya,
No. 888/2, Courtallam Road,
Piranoor Border, Sengottai-627 809.
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W.P(MD)No.1069 of 2023
5.S.Ganesh Kumar
6.Prabhakaran ... Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution of India,
praying this Court to issue a Writ of Mandamus directing the 1st and 2nd
respondents to delete the attachment entries of the 3rd respondent in the
encumbrance certificate on the file of the 2nd respondent relating to the schedule
of properties detailed below within reasonable time period fixed by this Court.
SCHEDULE OF PROPERTIES
All that piece and parcel of the properties and building and its
attachments situated as follows:
Item No:1
1. Tenkasi Registration District, Tenkasi Sub Registrar Office-l
Shenkottaah Taluk, Piranoor Panchayat Limit, Piranoor Village, Ayan Punja
Survey No. 157/1 out of 0.85.5 Hectares ie.2.11 Acres Western end North-
South Punja land measuring 56 Cents equal to 24393.80 sq.ft I.e. 2266.22
Sq.Mts and Survey No.157/2 Out of 0.95.5 Hectares i.e. 2.36 Acres Western
side land measuring 1.40 Acres equal to 60984.sq.ft i.e.,5665.55 sq.mtrs. And
Survey No.157/1C measuring 0.07.0 hectares and 156/1D1 land measuring
0.12.0 Hectares thus totally measuring out of 47 cents Northern end and
Eastern end land measuring 29 cents equal to 12632.40 sq.ft i.e.,1173.58 Mtrs.
Thus totally measuring an extent of 2.25 Acres equal to 98010 Sq.mts i.e.
9105.35 Sq.Ft.
Bounded on:
North By: Punja land belongs to Esakki Thevar
South By: Compound Well of Vikekananthan Saw Mill
West By: 285 x 25 width pathway in the possession of the vendors and
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W.P(MD)No.1069 of 2023
sites sold to Benjamin Atham and 5 Others.
East By: Land sold by the vendor of the title holders
The Schedule property land is Survey No.157/1, 2 are now subdivided
and forms part of Survey Nos. 157/1 Al and 2A1
2.Tenkasi Registration District. Tenkasi Sub Registrar Office 1
Shenkottaah Taluk, Piranoor Panchayat Limit, Piranoor Village Ayan Punja
Survey No. 157/1 out of 0.855 Hectares ie..2.11 Acres Eastern side Northern
end vacant land measuring 8 Cents i.e., 3484.80 sq.ft 323.75 Sq.Mtrs,
Bounded on:
North By: Punja land belongs to Esakki Thevar
South By : Punja land belongs to Ponnulakshmi
West By: Punja land belongs to S. Balasubramanian Vakayara
East By: Punja land belongs to Esakki Thevar
3.Tenkasi Registration District, Tenkasi Sub Registrar Office 1,
Shenkottaah Taluk, Piranoor Panchayat Limit, Piranoor Village, Patta No. 878,
Ayan Punja Survey no. 145/2A Out of 0.21.5 hectares i.e.,53 Cents Southern
side East-West portion vacant land measuring 33 cents 14374.80 Sq.ft 1335.45
Sq.Mtrs and it is referred in the Piranoor Village Settlement Chitta Joint Patta
No.878
Bounded on:
North By: North-South 30 Ft Width East West Common Pathway
South By: Saw mill belongs to Rathinaraj Vakayara
West By: Kutralam to Shencottah Road
East By: Punja land sold by the vendors to the title holders
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W.P(MD)No.1069 of 2023
Item No.2
1.Tenkasi Registration District, Tenkasi Sub Registrar Office 1
Shencottah Taluk, Piranoor Panchayat Limit, Piranoor Village, Ayan Punja
Survey No.155/2 land measuring 0.17.0 0 Hectares ie., 42 cents
Bounded on:
North By: Punja land belongs to Esakki Thevar Vakayara
South By : Punja land purchased by the title holders from the vendor
West By: Punja land purchased by the title holders from the vendor
East By: Punja land belongs to Esakki Thevar
The Schedule property land is Survey No. 157/1,2 are now subdivided and
forms part of Survey Nos. 157/1A1 and 2A1.
2.Tenkasi Registration District, Tenkasi Sub Registrar Office 1,
Shenkottaah Taluk, Piranoor Panchayat Limit, Piranoor Village, Ayan Punja
Survey No. 157/1 out of 0.85.5 Hectares ie., 2.11 Acres eastern side vacant land
measuring East West 158 Ft North South 138 Ft 1.c.,50 cents 21804 Sq.Ft
2025.64 Sq.Mts situated on the southern side of punja land belongs to
Balasubramanian as per sub division proceedings sub division survey no.
157/1B
Bounded on:
North By: Punja land belongs to S.Balasubramanian Vakayara
South By: Punja land belongs to S.Pitchammal
West By: Punja land belongs to S.Balasubramanian Vakayara
East By: Punja land belongs to Esakki Thevar
3.Tenkasi Registration District, Tenkasi Sub Registrar Office
Shenkottaah Taluk, Piranoor Panchayat Limit, Piranoor Village Ayan Punja
Survey No. 157/1 out of 0.95.5 hectares i.e. 2.36 Acres eastern side southern
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W.P(MD)No.1069 of 2023
end vacant land measuring East West 146 Ft. North Sour 149 Ft i.e.,50 cents
21754 Sq.Ft 2020.99 Sq.Mts as per Sub divis proceedings sub division survey
no 157/2C
Bounded on:
North By : Punja land belongs to S.Pitchammal
South By: Punja land belongs to vivekanandar? vakayara
West By : Punja land belongs to S.Balasubramanian Vakayara
East By: Punja land belongs to Esakki Thevar and vivekanandan
vakayara
4.Tenkasi Registration District, Tenkasi Sub Registrar Office 1,
Shenkottaah Taluk, Piranoor Panchayat Limit, Piranoor Village, Ayan Punja
Survey No. 157/1 out of 0.85.5 Hectares ie.2.11 Acres castem side southern end
vacant land measuring 25 cents 10902 Sq.Fi 1012.82 Sq.Mts as per sub
division proceedings sub division survey no.157/1C Adjacent to that survey no
157/2 out of 0.95.5 hectares i.e.2.36 Acres easter side norther end vacant land
measuring 25 cents 10804 Sqft 1003.72 Sq.Mts. As per sub division
proceedings sub division survey no.157/2B
Bounded on:
North By: Punja land belongs to K.Ponnulakshmi
South By: Punja land belongs to D.Marimuthu
West By: Punja land belongs to S.Balasubramanian Vakayara
East By: Punja land belongs to Esakki Thevar and vivekanandan
vakayara
With in the said boundaries site measuring East West 146 Ft North South
74 Ft in Survey No. 157/2B and site measuring East West 158 Ft North South
69 Ft in Survey No.157/1C.
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W.P(MD)No.1069 of 2023
For Petitioner : Mr.V.Sukumar
For R1 & R2 : Mr.M.Siddharthan
Additional Government Pleader
For R3 : Mr.R.Suresh Kumar
Additional Government Pleader
For R4 to R6 : Mr.S.Suresh
ORDER
The petitioner seeks a direction to the respondents 1 and 2 to delete the attachment entries of the 3rd respondent in the encumbrance certificate on the file of the 2nd respondent, relating to the schedule of properties within reasonable time period fixed by this Court.
2.It is the case of the petitioner that she is the secured creditor and memorandum of deposit of title deed was executed in their favour on 03.10.2016. Thereafter, the proceedings under SARFAESI Act were initiated and demand notice under Section 13(2) of the SARFAESI Act was issued on 28.07.2021 and possession notice was issued on 23.11.2021 and thereafter, physical possession was also taken by the petitioner. In the meanwhile, the 3rd respondent has passed an attachment order on 07.09.2021. The same has been reflected in the encumbrance. Therefore, since the petitioner is the secured https://www.mhc.tn.gov.in/judis 6/10 W.P(MD)No.1069 of 2023 creditor, seeking removal of the entry made in the encumbrance, the petitioner has filed this Writ Petition.
3.It is relevant to note that the order of attachment has passed in different proceedings and the same has been reflected in the encumbrance. The very purpose of reflecting the encumbrance is to inform about the nature of the transaction to the public. Therefore, as a matter of right, merely because the petitioner is having first right according to him, the entry made in the encumbrance cannot be removed.
4.It is relevant to extract Section 26E of SARFAESI Act herein, which reads as follows:-
“26E. Notwithstanding anything contained in any other law for the time being in force, after the registration of security interest, the debts due to any secured creditor shall be paid in priority over all other debts and all revenues, taxes, cesses and other rates payable to the Central Government or State Government or local authority.”
5.It is further relevant to extract Section 82 of Central Goods and Service Act, 2017, which came into effect on 12.04.2017, which reads as follows:-
https://www.mhc.tn.gov.in/judis 7/10 W.P(MD)No.1069 of 2023 “Section 82:-Notwithstanding anything to the contrary contained in any law for the time being in force, save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, any amount payable by a taxable person or any other person on account of tax, interest or penalty which he is liable to pay to the Government shall be a first charge on the property of such taxable person or such person.”
6.In such view of the matter, since the petitioner is the secured creditor and security interest is also created in his favour, any attachment made later assumes insignificance and it will have no impact. The rights of the petitioner will be decided based on the priority right. Further, the above provisions will take care of the rights of the petitioner and therefore, no purpose will be served in directing the respondents 1 and 2 to remove the entry made in the encumbrance.
7.With the above observation, this Writ Petition is disposed of. No costs.
20.09.2024
NCC : Yes / No
Index : Yes / No
Internet : Yes / No
Yuva
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W.P(MD)No.1069 of 2023
To
1.The District Registrar,
Registration Department,
Tenkasi District.
2.The Sub Registrar (Joint-I),
Registration Department,
Tenkasi, Tenkasi District.
3.The State Tax Officer (Collection and Arrear), O/o.Deputy Commissioner (Intelligence Wing), Central Board of Indirect Taxes and Customs, Tirunelveli.
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