STATE BANK OF INDIA Vs. SUB REGISTRAR

JUDGEMENT

(1.) The petitioner has approached this court being aggrieved by the fact the 1st respondent has refused to register a sale certificate issued by the petitioner under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (In short 'the SARFAESI Act') in respect of the property belonging to respondents 2 and 3 which was brought to sale to recover the amounts due to the respondent bank.

(2.) The learned counsel appearing for the petitioner would submit that the 1st respondent had refused to registration on the premise that there was a registered lease deed in respect of the property in favour of the 4th respondent. It is submitted that even going by the terms of the lease deeds (Exts.P8 and P9), the term of the lease has expired as early as on 30/9/2020. It is submitted that in terms of the provisions contained in Sec. 101 of the Transfer of Property Act, the lease has already been determined by efflux of time. It is submitted that no release deed is required to be executed as it is evident from Ext.P2 Advocate Commission Report filed in proceedings under Sec. 14 of the SARFAESI Act that the 4th respondent was not in possession or enjoyment of the property on the date on which it was taken over under the provisions of the SARFAESI Act. It is submitted that this writ petition concerns only a portion of the property mentioned as item No.5 in Ext.P1 and it is clear from the reading of Ext.P2 that item No.5 was taken possession by the Advocate Commissioner on 27/1/2021.

(3.) The learned Government Pleader would submit that since a registered lease deed constitutes an encumbrance on the property and since the details of the registered lease deed are noted in the encumbrance certificate, the 4th respondent was not in a position to register the sale deed without a release deed being executed in respect of the property in question. However, the learned Government Pleader agrees that a reading of Ext.P2 will suggest that item No.5 in Ext.P1 was taken possession on 27/1/2021 by the Advocate Commissioner appointed by the Chief Judicial Magistrate Court, Kollam. Though notice was issued to the 4th respondent and the notice was served, there is no appearance for the 4th respondent.