TAMILNAD MERCANTILE BANK LTD Vs. SUB-REGISTRAR

JUDGEMENT

(1.) Tamilnad Mercantile Bank Ltd., Therekalputhur, Nagercoil 629 002, Kanniyakumari District, represented by the Authorized Officer, has come to this Court challenging the impugned attachment entry made by the second respondent towards tax arrears and registered on the file of the first respondent on 11.04.2018 as Doc.No.7/2018 in Vol.No./P.No.2685/75 and efface/delete the said adverse encumbrance entry and consequently, direct the first respondent to register the sale certificate dated 11.07.2018 executed by the petitioner bank in favour of the third respondent in respect of the subject properties within the time schedule to be fixed by this Court.

(2.) By consent, the writ petition is taken up for final disposal.

(3.) Learned Counsel for the petitioner assailing the impugned entry made by the first respondent would submit that M/s.Vaibav Steels, Ozhuginasery, Nagercoil, having borrowed a cash credit loan of Rs. 4,00,00,000/- (Rupees Four Crores only) on 30.05.2013, mortgaging two properties, one in the name of S.Balamurugan and the other in the name of G.Vanaja as collateral security to the loan, committed default in repaying the loan amount and as a result, the loan amount was classified as a Non-Performing Asset (in short 'NPA') on 30.06.2015. Thereafter, the petitioner bank initiated proceedings under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [in short 'SARFAESI Act']. However, finding no response either from the borrower or from the guarantor to clear the dues, the petitioner bank, again issued a possession notice dated 27.01.2016 and it is also published in the newspapers. Again, finding no response from the borrower and guarantor, an application was moved before the District Collector "cum " District Magistrate, Kanyakumari District, under Section 14 of the SARFAESI Act on 21.12.2017, requesting the District Collector " cum " District Magistrate, Kanyakumari District, to assist the petitioner bank to take peaceful possession of the property under Section 14 of the SARFAESI Act. Considering the fact that the borrower has committed default along with the guarantor and accepting the request made by the petitioner bank, the District Collector-cum-District Magistrate, Kanyakumari District, by exercising the powers under Section 14 of the SARFAESI Act, passed the proceedings dated 11.01.2018 granting assistance to the petitioner to take over the possession of the secured assets and as a result, the peaceful possession of the assets was also taken and handed over to the petitioner bank on 15.02.2018 by the Special Tahsildar (Stamps) " I, Nagercoil. Subsequently, in order to recover the dues, the petitioner bank held a public auction issuing sale notices on 12.02.2016, 30.02016, 105.2016, 05.09.2016, 05.08.2017, 17.11.2017 and 27.02.2018 and the last of such sale notices on 06.04.2018 under the SARFAESI Act against two properties mortgaged to the petitioner bank. Notices were also published in the newspapers as per the provisions of the SARFAESI Act. Finally, the properties were sold to the third respondent as he was the successful bidder having quoted Rs. 3,44,25,000/- (Rupees Three Crores Forty Four Lakhs and Twenty Five Thousand only).