UCO BANK Vs. STATE OF KERALA

JUDGEMENT

(1.) The UCO Bank, which is a public sector Bank, constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, is the petitioner in this case.

(2.) The petitioner says that, they had obtained an equitable mortgage over the property involved in this case from respondents 3 and 4, who are its owners, while availing of a financial facility from them; but that since the said respondents did not service the said facility satisfactorily, they were constrained to bring it to sale under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act (hereinafter referred to as the 'SARFAESI Act' for short). They say that the sale has been confirmed in favour of the auction purchaser, but that when they attempted to register the Sale Certificate, by presenting it before the 2nd respondent -Sub Registrar, said Authority has refused to accede to it saying that there are certain attachments reflected on the property in question.

(3.) The petitioner asserts that all the attachments reflected on the property, as are evident from Ext.P5 Encumbrance Certificate, were all much after the date of mortgage - which was 10/9/2014, and therefore, that, going by the various judgments of this Court, including in Secretary, Keechery Service Co-operative Bank Ltd v. Sajitha Nizar Alias Sajitha P.M [2020 (6) KLT 68], they cannot be impeded from proceeding against it or in bringing it to sale, which they have done validly as per the provisions of the SARFAESI Act. They therefore, pray that the Sub Registrar be directed to efface the attachments and to register the Sale Certificate without any further delay.