FEDERAL BANK LIMITED Vs. SUB REGISTRAR

JUDGEMENT

(1.) The petitioner, a banking company, has filed this writ petition for a direction to the 1st respondent, Sub Registrar, Alangad to delete the entry of attachment in the encumbrance register in respect of its secured assets.

(2.) One Mr.Baiju John, proprietor of M/s. Kochin Food Mall, Ernakulam, availed credit facilities from the petitioner Bank by mortgaging two items of properties comprised in Survey No.319/4 of Varapuzha Village. The equitable mortgage by deposit of title deeds was created by the borrower on 6/11/2006 and 13/8/2011. Since the borrower defaulted payment of installments, the petitioner initiated proceedings under the SARFAESI Act and the property was sold by way of a private treaty in favour of the 3rd respondent as per Ext.P11 sale certificate dtd. 27/9/2023.

(3.) The 4th respondent, the Special Deputy Collector (RR), Kerala State Housing Board, has attached the mortgaged property as per order dtd. 16/2/2018 for an amount of Rs.2,03,976.00 with interest and other charges due to them. The petitioner contends that the aforesaid attachment effected by the 4th respondent subsequent to the creation of equitable mortgage in favour of the petitioner is liable to be effaced consequent to the sale conducted by the petitioner under the SARFAESI Act. According to the petitioner, the right of redemption of the borrower has been extinguished by the operation of Sec. 13(8) of the SARFAESI Act and even after the sale, further amounts are due to the petitioner.