AXIS BANK LIMITED Vs. SUB REGISTRAR

JUDGEMENT

(1.) The petitioner seeks to declare that attachment made after mortgage has no existence in the eye of law and seeks to direct the 1st respondent to efface the attachment effected after mortgage and to register Ext.P5 Sale Certificate.

(2.) The petitioner is Axis Bank Limited. One Jeneesh G.J. and Jency availed a loan from the petitioner-Bank for an amount of ?32 lakhs in the year 2017. They mortgaged a property having an extent of 3.10 Ares along with a building situated in Alagappanagar Panchayat of Thrissur District. The loan repayment was defaulted. The petitioner initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Physical possession of the mortgaged property was taken over invoking Sec. 14 of the Act, 2002, on 6/3/2020.

(3.) When the Bank obtained Encumbrance Certificate for the purpose of putting the property for sale, the petitioner noted that there is an attachment made at the instance of the 4th respondent. The mortgaged property was put to sale. Finally, respondents 5 and 6 purchased the property in auction, for an amount of ?21,50,000/-. The 5th respondent remitted the entire sale consideration. However, when the petitioner approached the 1st respondent to register the Sale Certificate, the 1st respondent refused to do so on the ground that there is an attachment effected over the property.