CITY UNION BANK Vs. SUB REGISTRAR

JUDGEMENT

(1.) The City Union Bank is the petitioner. The Bank seeks to declare that it has priority in the matter of recovery of its dues from 3rd to 8th respondents over attachment/encumbrance reflected in Ext.P15 Encumbrance Certificate, being a secured creditor having its security interest registered with the 'Central Registry" as provided in Sec. 26E of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The petitioner also seeks to command the 1st respondent-Sub Registrar to register Ext.P12 Sale Certificate ignoring/effacing the encumbrance/attachments in favour of the 10th respondent as reflected in Ext.P15 Encumbrance Certificate.

(2.) The petitioner states that the petitioner-Bank granted various credit facilities to respondents 3 to 5 during 2014-2017. As a security, respondents 3 to 8 executed security agreements in favour of the petitioner. Respondents 3 to 5 had mortgaged an extent of 1.583/100 undivided share in an extent of 51.21 Cents in Survey No.36/1, Re-survey No.176/35, Re-survey Block No.5, Kasba Village, Kozhikode Taluk, Kozhikode District along with Flat No.1C in the building complex 'Leo Paradise'. The period of equitable mortgage was extended from time to time.

(3.) The petitioner states that the equitable mortgage was created as early as on 12/2/2014. The mortgage was registered with the Central Registry. When the borrower failed to remit the amounts due, the loan accounts were declared as NPA on 28/3/2020. Sec. 13(2) notice was issued under the SARFAESI Act. Later, the petitioner took possession of the secured asset invoking Sec. 14. A sale notice was published. The property was sold for a sum of ?45,01,000/- in favour of the 9th respondent, on 2/1/2024.