APHC010230892024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) r--' /I m ;/0 T O THURSDAY,THE THIRTY FIRST DAY OF JULYo TWO THOUSAND AND TWENTY FIVE -K/ c> PRESENT THE HONOURABLE SRI JUSTICE SUBBA REDDY SATTI WRIT PETITION NO: 11752 OF 2024 Between: Union Bank of India, (Erstwhile Andhra Bank) Madanapalle Branch CTM Road, Madnapalle, Annamayya District - 517325 Represented by its Authorized officer. Email id ubin0803707@unionbankofindia.ba nk ...Petitioner AND 1. The State of Andhra Pradesh, Represented by Its Principal Secretary Revenue Department Secretariat, Velagapudi, Amaravathi, Andhra Pradesh 2. Director and Inspector General of Registration and Stamps, D. No. 5/59, R.K. Spring Valley Apartments Krishna District, Andhra Pradesh -521151. 3. The Sub Registrar of Assurances, Madanpalle, Annamayya District Andhra Pradesh 517325 4. Syamakuru Reddappa, S/o Late Syamakuru Kotappa, R/o D. No. 3-62, Near Dwarakanath Colony, CTM Road, Madnapalli Town and post, Annamayya District 5. Guttha Venkata Swamy Naidu, S/o Guttha Venkatramanappa Naidu R/o D. No. 3-145-B-6, Prasanth Nagar, Siddartha College Road, Madanapalle Town, Annamayya District 6. Rachapalli Venkataramana Reddy, S/o R. Krishna Reddy, R/o. Obulam Palli, Valmikipuram Post and Mandal, Annamaiah District, A.P. 7. M R Karthik Ram, S/o M.K. Reddy Surya Prakash, R/o. D.No.ll-358-D, S.V. Colony, Madanepalle Town, and Mandal, AnnamaiahDistrict, A.P. 8. R Sami Reddy, S/o R. Chinnapa Reddy, R/o Valasapalle, H/o Mustur, Nimmanapalle Mandal, Annamaiah District. Mandal, Edupugallu, Kankipadu, 9. A Venkataramana, S/o Akkulappa, R/o Kotha Gandlapalle, Pothabolu, Madanapalle, Annamaiah District. B Venkataramana, S/o B Venkataswamy, R/o D.No. 2-103, Main Bazar, Tharigonda, Gurramkonda Mandal, Annamaiah District. Puli Mahesh Kumar Reddy, S/o Puli Vijaya Kumar Reddy R/o D. No. 3-169-13-158-42, Rama Rao Colony, Madanapalli Puli Saraswathi, W/o Puli Vijay Kumar Reddy R/o D. No. 3-169- 13-158-42, Rama Rao Colony, Madanapalli 10. 11. 12. ...Respondents Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ or order or direction more particularly one in the nature of Writ of Mandamus declaring the inaction and refusal on the part of the Respondent No. 3 to register the Sale Certificate being issued by the Petitioner in favour of the auction purchaser in respect of Residential land and Building (GF plus FF plus SF) bearing D. No. 15-5-15 ad, 146.66 Square Yards on Plot No. 12 and 13 in Survey No. 310-1 situated at Bandameeda Kammapalle Village, Ratnakonda Reddeppa Naidu Colony Extn, Madanaplli Mandal Madanapalli Sub District, Madanpalle Municipality, Annamayya and bounded by District East House in Plot No. 14 belongs to Mr. Chidambaram, West Site of Sri Peddapallem Chinna Venkatappa in Part of Plot No. 12 and 13, North 30 feet wide road. South Property of Manasa Hospital in Plot No. 18 and 19 under SARFAESI Act as arbitrary, illegal. capricious and violative of principles of natural Justice and against the provisions of SARFAESI Act, 2002 and the Rules framed there under and Section 48 of Transfer of Property Act and consequently direct the Respondent No.3 to register the Sale Certificate being executed by the Petitioner Bank under SARFAESI Act. lA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased direct Respondent No. 3 to register the Sale Certificate being issued by the to Petitioner in favour of the auction purchaser in respect of Residential land and Building (GF + FF + SF) bearing D. No. 15-5-15 ad, 146.66 Square Yards Plot No. 12 and 13 in Survey No. 310-1 situated at Bandameeda Kammapalle Village on Ratnakonda Reddeppa Naidu Colony Extn, Madanaplli Mandal, Madanapalli Sub District, Madanpalle Municipality, Annamayya District and bounded by : East: House in Plot No. 14 belongs to Mr. Chidambaram, West: Site of Sri Peddapallem Chinna Venkatappa in Part of Plot No. 12 and 13, North ; 30 feet wide road. South : Property of Manasa Hospital in Plot No. 18 and 19 pending disposal of the above Writ Petition. lA NO: 2 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to order for service of notice on Respondent No. 8 by substituted service by way of paper publication in any local news paper. Counsel for the Petitioner: V DYUMANI Counsel for the Respondent Nos. 1 to 3: GP FOR REGISTRATION AND STAMPS Counsel for the Respondent Nos. 4 and 9: SRI T NAGARJUNA REDDY Counsel for the Respondent Nos. 11 and 12: SRI RAJA REDDY KONETI The Court made the following order: f:f ip APHC010230892024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3331] THURSDAY, THE THIRTY FIRST DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE SUBBA REDDY SATTI WRIT PETITION NO: 11752/2024 Between: 1. UNION BANK OF INDIA, (ERSTWHILE ANDHRA BANK) MADANAPALLE BRANCH CTM ROAD, MADNAPALLE, ANNAMAYYA DISTRICT - 517325 REPRESENTED BY ITS AUTHORIZED OFFICER, EMAIL UBIN0803707@UNIONBANKOFINDIA.BANK ID ...PETITIONER AND 1. THE STATE OF ANDHRA PRADESH, REPRESENTED BY ITS PRINCIPAL SECRETARY REVENUE DEPARTMENT SECRETARIAT VELAGAPUDI, AMARAVATHI, ANDHRA PRADESH 2. DIRECTOR AND INSPECTOR GENERAL OF REGISTRATION AND STAMPS, D. NO. 5/59, R.K. SPRING VALLEY APARTMENTS, MANDAL, EDUPUGALLU, KANKIPADU KRISHNA DISTRICT, ANDHRA PRADESH -521151. 3. THE SUB REGISTRAR OF ASSURANCES, MADANPALLE, ANNAMAYYA DISTRICT ANDHRA PRADESH 517325 4. SYAMAKURU REDDAPPA, S/0 LATE SYAMAKURU KOTAPPA, R/0 D. NO. 3-62, NEAR DWARAKANATH COLONY, CTM ROAD, MADNAPALLI TOWN AND POST, ANNAMAYYA DISTRICT 5. GUTTHA VENKATA SWAMY NAIDU, S/0 GUTTHA VENKATRAMANAPPA NAIDU R/0 D. NO. 3-145-B-6, PRASANTH NAGAR, SIDDARTHA COLLEGE ROAd! Page 2 of 8 MADANAPALLE TOWN, ANNAMAYYA DISTRICT 6. RACHAPALLI VENKATARAMANA REDDY, S/0 R. KRISHNA REDDY, R/0. OBULAM PALLI, VALMIKIPURAM POST AND MANDAL, ANNAMAIAH DISTRICT, A.P. 7. M R KARTHIK RAM, S/0 M.K. REDDY SURYA PRAKASH, R/0. D.NO.II-358-D, S.V. COLONY, MADANEPALLE TOWN, AND MANDAL, ANNAMAIAHDISTRICT, A.P. 8. R SAMI REDDY, S/0 R. CHINNAPA REDDY, R/0 VALASAPALLE, H/0 MUSTUR, NIMMANAPALLE MANDAL, ANNAMAIAH DISTRICT. 9. A VENKATARAMANA, S/0 AKKULAPPA, R/0 KOTHA GANDLAPALLE, POTHABOLU, MADANAPALLE, ANNAMAIAH DISTRICT. 10.B VENKATARAMANA, S/0 B VENKATASWAMY, R/0 D.NO. 2- ' 103, MAIN BAZAR, THARIGONDA, GURRAMKONDA MANDAL, ANNAMAIAH DISTRICT. 11. PULI MAHESH KUMAR REDDY, S/0 PULI VIJAYA KUMAR REDDY R/0 D. NO. 3-169-13-158-42, RAMA RAO COLONY, MADANAPALLI 12.PULI SARASWATHI, W/0 PULI VIJAY KUMAR REDDY R/0 D. NO. 3-169-13-158-42, RAMA RAO COLONY, MADANAPALLI ...RESPONDENT(S): Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ or order or direction more particularly one in the nature of Writ of Mandamus declaring the inaction and refusal on the part of the Respondent No. 3 to register the Sale Certificate being issued by the Petitioner in favour of the auction purchaser in respect of’ Residential land and Building (GF plus FF plus SF) bearing D. No. 15-5- 15 ad, 146.66 Square Yards on Plot No. 12 and 13 in Survey No. 310-1 situated at Bandameeda Kammapalle Village, Ratnakonda Reddeppa Naidu Colony Extn, Madanaplli Mandal, Madanapalli Sub District, Madanpalle Municipality, Annamayya District and bounded by East House in Plot No. 14 belongs to Mr. Chidambaram, West Site of Sri Peddapallem Chinna Venkatappa in Part of Plot No. 12 and 13, North T # 30 feet wide road, South Property of Manasa Hospital in Plot No. 18 and 19 under SARFAESI Act as arbitrary, illegal, capricious and violative of principles of natural Justice and against the provisions of SARFAESI Act, 2002 and the Rules framed there under and Section 48 of Transfer of Property Act and consequently direct the Respondent No.3 to register the Sale Certificate being executed by the Petitioner Bank under SARFAESI Act and pass lA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct Respondent No. 3 to register the Sale Certificate being issued by the Petitioner in favour of the auction purchaser in respect of Residential land and Building (GF + FF + SF) bearing D. No. 15-5-15 ad, 146.66 Square Yards on Plot No. 12 and 13 in Survey No. 310-1 situated at Bandameeda Kammapalle Village Reddeppa Naidu Colony Extn, Madanaplli Mandal, Madanapalli Sub District, Madanpalle Municipality, Annamayya District and bounded by : East; House in Plot No. 14 belongs to Mr. Chidambaram, West: Site of Sri Peddapallem Chinna Venkatappa in Part of Plot No. 12 and 13, North : 30 feet wide road. South : Property of Manasa Hospital in Plot No. 18 and 19 pending disposal of the above Writ Petition and pass lA NO: 2 OF 2024 Ratnakonda Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to order for service of notice on Respondent No. 8 by substituted service by way of paper publication in any local news paper and pass Counsel for the Petitioner: 1.VDYUMANI Counsel for the Respondent(S): 1.TNAGARJUNA REDDY 2.GP FOR REGISTRATION AND STAMPS (AP) !• 3. RAJA REDDY KONETl The Court made the following: ORDER K.M.Kishore, learned counsel representing Heard Sri Smt.V.Dyumani, learned counsel for the petitioners, Sri G.Divya Theja, learned Assistant Government Pleader for Stamps & Registration for the respondents 1 to 3, and Sri T.Nagarjuna Reddy, learned counsel for the respondents 4 to 9. There is no representation on behalf of respondents 11 and 12. The petitioner, a financial institution, filed the above writ petition impugning the letter of the 3'^^ respondent vide No.E/22/2024, dated 26.02.2024, as illegal and arbitrary. 2. 3. a) Averments in the affidavit, in brief, are that the 4‘^ respondent availed a home loan of Rs.22 lakhs and ABPTL loan of Rs.20 lakhs from the Andhra Bank, Madanapalli Branch (amalgamated with Union Bank of India with effect from 01.04.2020) against the security of residential land and building (GF+FF+SF) bearing D.No.15-5-15, admeasuring 146.66 square yards. Plot No. 12 and 13, S.No.310-1 situated at Bandameeda Kammapalle village, Ratnakonda Reddeppa Naidu Colony Extension, respondent created a mortgage on th Madanapalli Mandal. The 4 09.02.2015 over the secured asset by depositing the title deed under Section 58 (f) of the Transfer of Property Act, and the same was registered as deed No.792 of 2015 in the Joint Sub Registrar Office, Madanapalli. b) The 4**^ respondent committed default in payment of dues per the agreed terms, and as such, he was declared as NPA. The # proceedings under the SARFAESI Act were initiated, and the demand notice dated 17.10.2022 under Section 13 (2) of the Act was issued for payment of Rs.30,78,401.75p. Thereafter, by following the procedure, the e-auction notice dated 23.01.2024 was issued, fixing the date of auction on 14.02.2024. In the e-auction, the secured asset was sold for an amount of Rs.87,51,000/- and the bid was knocked down in favour of the 11‘^ respondent-Pulli Mahesh Kumar Reddy. The auction purchaser deposited the entire amount, and thereafter, the petitioner issued a sale certificate on 21.02.2024. The auction purchaser visited the 3 respondent to ascertain the stamp duty and registration fee payable on the certificate of sale. The 3'^'^ respondent informed that the respondents 5 to 10 filed suits for recovery of money, and an order of attachment was served on the 3'^^ respondent. rd c) The 5'^ respondent filed suit O.S.No.67 of 2022 on the file of Senior Civil Judge, Madanapalli, based on a simple mortgage dated 30.06.2021. The Court granted an order to garnishee on 25.03.2023. The 6*'^ respondent filed suit O.S.No.9 of 2023 on the file of Senior Civil Judge, Madanapalli, based on a promissory note dated 07.04.2022 executed by the 4'^ respondent and an order of attachment was passed by the Court in I.A.No.43 of 2023 on 07.02.2023, which was made absolute on 12.05.2023. The 7**^ respondent filed suit O.S.No.107 of 2024 on the file of Junior Civil Judge, Madanapalli, based on a promissory note dated 15.08.2021 executed by the 4^'^ respondent and an order of attachment was passed by the Court in I.A.No.53 of 2024 on 09.02.2024. The 8‘^ respondent filed suit O.S.No.1019 of 2022 on the file of Junior Civil Judge, Madanapalli, based on a promissory note dated 30.12.2020 executed by the 4^^ respondent and an order of attachment was passed by the Court in I.A.No.1312 of 2022 on 26.12.2022. The 9'^ respondent $ filed suit O.S.No.246 of 2023 on the file of Junior Civil Judge, Madanapalli, based on a promissory note dated 24.06.2020 executed by the 4‘^ respondent and an order of attachment was passed by the Court in I.A.No.61 of 2023 on 31.03.2023, which was made absolute 15.09.2023. The 10‘^ respondent filed suit O.S.No.76 of 2021 on the file of Senior Civil Judge, Madanapalli, based on an agreement of sale dated 19.11.2020 executed by the 4*^ respondent, and an order of attachment was passed by the Court in I.A.No.315 of 2021 on 20.12.2021. on 4. Learned counsel for the petitioner would submit that the 4'^ respondent originally mortgaged the property vide registered deed No.792 of 2015 dated 09.02.2015, and the orders of attachment referred to supra are after the mortgage and hence, the Sub Registrar cannot deny registration of the documents. Learned assistant government pleader and learned counsel appearing for owners of the property, supported the action of the registering authority. 5. Now, the point for consideration is: Whether the writ petitioner is entitled to the relief? An attachment before judgment, either under Order XXXVIII Rule 5 and 10 or Order XXI Rule 54 secures the interest of the plaintiff or the decree holder, preventing the defendant or judgment debtor from transferring the property. The attachment of property, per se, will not create any right in the property. Its object is to prevent the defendant’s attempt to defeat a prospective decree and a sort of guarantee against the decree becoming infructuous. 6. 7. Whereas, a mortgage under Section 58 of the Transfer of Property Act is concerned, it is a transfer of an interest over the specific immovable property for the loan repayment. Thus, the mortgage gives fit"' / the lender a security interest in the property. Unlike a sale, the complete ownership will not be transferred in a mortgage. 8. When the mortgage was subsisting, a suit was filed, and therein an attachment before judgment order was passed by the Civil Court. The attachment effected after the mortgage was created in favour of the bank does not affect the rights of the secured creditor over the subject property. The Division Bench of the composite High Court of Andhra Pradesh in City Union Bank Ltd. Vs. Sub-Registrar, Peddapalli and Ors.', considered the identical issue and held in Paragraphs-14 and 15 as follows: 9. The preponderance of judicial opinion leads to the irresistible conclusion that the sale of the mortgaged property in favour of the auction purchaser and the sale certificate under the SARFAESI Act in such circumstances is free of all encumbrances. The attachments effected subsequent to the mortgage created in favour of the bank do not affect the rights of the secured creditor over the subject property. Such attachments have no impact on the sale conducted under the Act and the same ceases to have any effect or fall to the ground the moment the same is confirmed in favour of the secured creditor Bank and auction purchaser. Otherwise, those attachments would remain as a permanent taboo prejudicially affecting the marketability and title to the property even though they ceased to have any legal efficacy and thereby it becomes necessary to register the sale certificate. 14. Taking into account all these aspects and reckoning the law in the subject as discussed above, this Court has no hesitation to hold 15. 2018 Supreme (AP) 333 : 2018 (6) ALD 16 ; 2018 (5) ALT 279 (DB) that the secured creditor is entitled to succeed in these writ petitions. The writ petitions are accordingly allowed directing the first respondent in both the writ petitions to register the sale certificates in accordance with the Registration Act.” Case at hand, the property was mortgaged by 4‘'" respondent on 09.02.2015 with the petitioner-bank and the different civil suits filed by the respondents 5 to 10 and the attachment orders issued therein, are after the mortgage executed by the 4**^ respondent in favour of the petitioner-bank. The ratio laid down in the judgment referred to supra is squarely applicable to the facts of this case. 10. Given the facts and circumstances of the case, the Writ Petition is respondent vide Letter 11. rd allowed and the letter issued by the 3 No.E/22/2024, dated 26.02.2024 (Ex.PI) is hereby set aside. The 3 respondent shall receive and process the sale certificate issued by the petitioner in respect of residential land and building (GF+FF+SF) bearing D.No.15-5-15, admeasuring 146.66 square yards. Plot No.12 and 13, S.No.310-1 situated at Bandameeda Kammapalle village, Ratnakonda Reddeppa Naidu Colony Extension, Madanapalli Mandal, strictly per the Registration Act, 1908. No order as to costs. rd As a sequel, pending miscellaneous petitions, if any, shall stand Sd/- K T/iJA RAO DEPUT closed. GiSTRAR //TRUE COPY// SECTION OFFICER One fair copy to The Honourable SRI JUSTICE SUBBA REDDY SATTI (For His Lordships Kind Perusal) To, Revenue Department, State of Andhra 1. The Principal Secretary, Pradesh, Secretariat Velagapudi, Amaravathi, Andhra Pradesh 2. Director and Inspector General of Registration and Stamps, D. No. 5/59, Mandal, Edupugallu, Kankipadu, R.K. Spring Valley Apartments, Krishna District, Andhra Pradesh -521151. 3. The Sub Registrar of Assurances, Madanpalle, Annamayya District Andhra Pradesh 517325 J 4. 9 LR Copies 5. The Under Secretary, Union of India, Ministry of Law, Justice and Company Affairs, New Delhi. 6. The Secretary, A.P Advocates’ Association Library, High Court Buildings, Amaravathi. 7. One CC to M/s V Dyumani Advocate [OPUC] 8. One CC to Sri. T Nagarjuna Reddy Advocate [OPUC] 9. One CC to Sri. Raja Reddy Koneti Advocate [OPUC] Two CCs to GP for Registration and Stamps, High Court of Andhra Pradesh [OUT] Two CD Copies 10. 11. GSC HIGH COURT DATED:31/07/2025 ORDER WP NO. 11752 OF 2024 f 06 SEP® ^ Current Section m ★ ALLOWING THE WP WITHOUT COSTS /y-'