IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI ,^7= (Special Original Jurisdiction) FRIDAY. THE TWENTY FOURTH DAY OF JANUARY TWO THOUSAND AND TWENTY FIVE PRESENT HON’BLE THE CHIEF JUSTICE SRI DHIRAJ SINGH THAKUR AND HON’BLE SRI JUSTICE RAVI CHEEMALAPATI WRIT PETITION Nos: 24679 AND 24681 OF 2024 WRIT PETITION NO: 24679 OF 2024 Between: M/s. IKF Finance and Investments Limited, D.No.40-1-144, Corporate Centre M.G. Road, Vijayawada-520010, AP. Rep. by its Authorized Officer. ...PETITIONER AND 1. The State of Andhra Pradesh, Rep. by the Secretary, Stamps and Registration, Secretariat, VelagapuHi Andhra Pradesh The Sub Registrar - Patamata, R Vijayawada Urban Mandal, NTR _ M/s. Sree Constructions, Rep. by its Managing Partner- Sri Chalasani Sridhar Office at D.No.G-3, Anjali Apartments, Sitaramnagar, Patamatalanka, Vijayawada Andhra Pradesh-520010 Sri Chalasani Sridhar, S/o. Rama Koteswara Rao, R/o. D.No.40-25-27, Masjid Street, Patamatalanka, Vijayawada Andhra Pradesh-520010 Smt. Gali Radha Bhagya Lakshmi, W/o. Venkat Babu, Flat.No.503, Venkat Heights, Patamatalanka, Vijayawada-520010 Mrs.Yalamanchili VijayaLakshmi, W/o. Late Y.Srihari Rao R/o. D.N0.8- 303, Katuru Road Vuyyuru Village and Mandal Krishna District, Andhra Pradesh. Mrs. Pinnamaneni Kasturi, W/o. Chandra Mohan, R/o. D.No.8-303, Katuru Road Vuyyuru Village and Mandal, Krishna District, Andhra Pradesh. 2. tion of Stamps and Revenue 3. 4. 5. 6. 7. 8. Mr.Kanakamedala Bharath Bhushan, S/o. Late Ranga Rao, H.No.27- 33-61/1, Governorpet, Vijayawada City and Urban Mandal, NTR District,Andhra Pradesh-520002. 9. Mr. Rachapudi Kesava Kumar, S/o. Satyanarayana, R/o. Door NO.JE143, A Colony, VTPS, Ibrahimpatnam Town and Mandal, NTR District, Andhra Pradesh - 521 456. ...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 Writ or Order or Direction more particularly the one in the nature Writ of Mandamus deciaring the inaction of the 2"^ Respondent in registering the Sale Certificate dated 11.10.2024 issued by the Petitioner Company under the provisions of SARFAESI Act in relation to the auctioned property of land admeasuring an undivided and unspecified extent of 60 sq.yds along with Flat.No.517 in Fourth Floor of ‘KAR’ S SREE BRUNDAVANAM with a plinth area of 1338 Sq.Feet and common area of 334 Sq.Ft and car parking of 250 Sq.ft bearing D.No. 40-25-8E, situated in Patamata , Vijayawada Municipal Corporation, Vijayawada along with all the constructions, improvements, easementary rights existing and appurtenant thereon on the pretext that Respondent No.5 has obtained an order of Status Quo on the said property passed in A.O.P.No.330/2019 on 09.08.2021 on the file of the Hon’ble XII Addl. District and Sessions Judge, Vijayawada against the 3 and 4 respondents and the said property has been included in the list of prohibited properties as illegal and conseo'- direct the 2 Respondent to register the Sale Certificate issut y to / the Petitioner Company under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 in favour of the 9‘^ Respondent in relation to the said property. lA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High Court may be pleased prayed to pass Interim orders pending disposal of the Writ Petition directing the 2^^ Respondent to register the Sale Certificate dated 11-10-2024 issued by the Petitioner Company under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 in favour of the 9th Respondent in relation to the property Viz land admeasuring an undivided and unspecified extent of 60 sq.yds along with Flat.No.517 in Fourth Floor of KAR S SREE BRUNDAVANAM with a plinth area of 1338 Sq.Feet and common area of 334 Sq.Ft and car parking of 250 Sq.ft bearing D.No. 40-25-8E, situated in Patamata , Vijayawada Municipal Corporation, Vijayawada. Counsel for the Petitioner : SRI AMBATIPUDI SATYANARAYANA, SENIOR COUNSEL APPEARING VICE SRI VEMURU VP LAKSHMINARASIMHA MURTHY Counsel for the Respondent Nos.1 & 2 : GP FOR REGISTRATION AND STAMPS Counsel for the Respondent Nos.6 to 8 : SRI VENKAT CHALASANI Counsel for the Respondent Nos.3, 4, 5 & 9 : NONE APPEARED WRIT PETITION NO: 24681 OF 2024 Between: M/s. IKF Finance and Investments Limited, D.No.40-1-144, Corporate Centre M.G. Road, Vijayawada-520010, AP. Rep. by its Authorized Officer. ...PETITIONER AND 1. The State of Andhra Pradesh, Rep. by the Secretary, Stamps and Registration, Secretariat, Velagapudi, Andhra Pradesh. 2. The Sub Registrar - Patamata, Registration of Stamps and Revenue, Vijayawada Urban Mandal, NTR District. 3. M/s. Sree Constructions, Rep. by its Managing Partner- Sri Chalasani Sridhar Office at D.No.G-3, Anjali Apartments, Sitaramnagar, Patamatalanka, Vijayawada Andhra Pradesh-520010 Sri Chalasani Sridhar, S/o. Rama Koteswara Rao, R/o. D.No.40-25-27, Masjid Street, Patamatalanka, Vijayawada Andhra Pradesh-520010 Smt. Gali Radha Bhagya Lakshmi, W/o. Venkat Babu, Flat.No.503, Venkat Heights, Patamatalanka, Vijayawada-520010. Mrs.Yalamanchili VijayaLakshmi, W/o. Late Y.Srihari Rao, R/o. D.No.8- 303, Katuru Road Vuyyuru Village and Mandal Krishna District, Andhra Pradesh. Mrs. Pinnamaneni Kasturi, W/o. Chandra Mohan, R/o. D.No.8-303, Katuru Road Vuyyuru Village and Mandal, Krishna District, Andhra Pradesh. Mr.Kanakamedala Bharath Bhushan, S/o. Late Ranga Rao, H.No.27- 33-61/1, Governorpet, Vijayawada City and Urban Mandal, NTR District,Andhra Pradesh-520002. Mrs. Ande Jayalakshmi, W/o. Venkata Sankara Rao, R/o. D.NO.61-4- 14B, Koravari Street, Balaji Nagar, Krishnalanka, Vijayawada City and Urban Mandal, NTR District, A.P-520013. 4. 5. 6. 7. 8. 9. ...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 Writ or Order or Direction more particularly the one in the nature Writ of Mandamus declaring the inaction of the 2"^ Respondent in registering the Sale Certificate dated 04.10.2024 issued by the Petitioner Company under the provisions of SARFAESI Act in rotation to the auctioned property of land admeasuring an undivided and unspecified extent of 60 sq.yds along with Flat.No.515 in Fourth Floor of ‘KAR BRUNDAVANAM with a plinth area of 1338 Sq.Feet and common area of 334 Sq.Ft and car parking of 250 Sq.ft bearing D.No. 40-25-8E, situated in Patamata , Vijayawada Municipal Corporation, Vijayawada along with all the constructions, improvements, easementary rights existing and appurtenant thereon on the pretext that Respondent No.5 has obtained an order of Status Quo on the said property passed in A.O.P.No.330/2019 on S SREE 09.08.2021 on the file of the Honble XII Addl. District and Sessions Judge, Vijayawada against the 3'^'^ and 4*^ respondents and the said property has been included in the list of prohibited properties as illegal and consequentially to direct the 2"*^ Respondent to register the Sale Certificate issued by the Petitioner Company under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 in favour of the Respondent in relation to the said property and to 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 writ petition, the Fligh Court may be pleased prayed to pass Interim orders pending disposal of the Writ Petition directing the 2"*^ Respondent to register the Sale Certificate dated 04-10-2024 issued by the Petitioner Company under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 in favour of the 9*'" Respondent in relation to the property Viz land admeasuring an undivided and unspecified extent of 60 sq.yds along with Flat.No.515 in Fourth Floor of KAR S SREE BRUNDAVANAM with a plinth area of 1338 Sq.Feet and common area of 334 Sq.Ft and car parking of 250 Sq.ft bearing D.No. 40-25-8E, situated in Patamata , Vijayawada Municipal Corporation, Vijayawada. Counsel for the Petitioner : SRI AMBATIPUDI SATYANARAYANA, SENIOR COUNSEL APPEARING VICE SRI VEMURU VP LAKSHMINARASIMHA MURTHY Counsel for the Respondent Nos.1 & 2 : GP FOR REGISTRATION AND STAMPS Counsel for the Respondent Nos.6 to 8 : SRI VENKAT CHALASANI Counsel for the Respondent Nos.3, 4, 5 & 9 : NONE APPEARED The Court made the following: COMMON ORDER Bench Sr.No;-63 [3483] APHC010478812024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI Writ Petition Nos: 24679 and 24681 of 2024 ...Petitioner IKF Finance And Investments Limited Vs. ...Respondent(s) The State Of Andhra Pradesh and Others ********** Mr. Ambatipudi Satyanarayana, Senior Counsel, appearing vice Mr. VV L N P Murthy GP for Registration And Stamps Advocate for Petitioner; Advocate(s) for Respondent(s): CORAM :THE CHIEF JUSTICE DHIRAJ SINGH THAKUR SRI JUSTICE RAVI CHEEMALAPATI DATE : 24th January 2025 PER DHIRAJ SINGH THAKUR. CJ: Since the issues raised in the present petitions are common, it is proposed to dispose of the same by way of common judgment and order. The present petitions have been filed seeking a mandamus to the registering authority i.e., the Sub-Registrar, Stamps and Registration Department - respondent No.2 to register the sale certificate, dated 11.10.2024, in W.P. No. 24679 of 2024, and sale certificate, dated 04.10.2024, in W.P. No. 24681 of 2024. The sale of the properties, which were secured assets, were effected by the petitioner Financial Institution by 2 HCJ a RC, J W.P. Nos: 24679 a24681 of 2024 invoking the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, on account of the failure of the borrowers/guarantors to repay the loan amount. The registering authority, it appears, has refused registration of sale certificates on account of the fact that there were orders of attachment, dated 09.08.2021, in reference to W.P. No. 24679 of 2024 and W.P. No. 24681 of 2024 passed by the civil Court, which prevented the registering authority from registering the sale certificates. 2. Learned counsel for the petitioner, on the other hand, would submit that notwithstanding the fact that civil Courts had issued the orders of attachment. yet the mortgages had been created with the Petitioner Financial Institution much earlier to the passing of the orders of attachment. It is stated that on the properties covered in W.P. No.24679 of 2024 and W.P. No. 24681 of 2024, mortgage was created on 31.01.2017, much before the orders of attachment passed by the civil Court. The issue as to whether the registering authority can refuse to register the sales certificate on account of an order of attachment is already settled by 3. this Court in its judgment and order, dated 04.12.2024, in the case of M/s. Manasa Hotels Private Limited v. Union of India and others V The Judgment and Order supra had followed the view expressed by the erstwhile ^W.P. No. 12458 of 2024 3 HCJ a RC. J W.P. Nos: 24679 a24681 of 2024 High Court of Andhra Pradesh in the case of City Union Bank Ltd. v. Sub- Registrar, Peddapalli, Karimnagar district and others^ The ratio of the judgments supra is that attachments affected subsequent to the mortgage created in favor of the secured creditor, do not affect the rights of the secured creditor over the subject property and such attachments have no impact on the sale conducted under the Act. 4. Be that as it may, having already expressed a view by this Court in the case of M/s. Manasa Hotels Private Limited (supra), we allow these petitions and direct the respondents to register the sale certificates in accordance with the provisions of the Registration Act on payment of the requisite registration fee, notwithstanding the existence of the orders of attachment, dated 09.08.2021, in reference to W.P. No. 24679 of 2024 and W.P. No. 24681 of 2024, passed by the civil Court. No costs. Pending miscellaneous applications, if any, shall stand closed. ^ 22018 see Online Hyd 370 Sd/- P.U.V.BHASKAR RAO ASSISTANT REGISTRAR //TRUE COPY// SECTION OFFICER To, 1. The Secretary, Stamps and Registration, State of Andhra Pradesh, Secretariat, Velagapudi, Andhra Pradesh. 2. The Sub Registrar - Patamata, Registration of Stamps and Revenue, Vijayawada Urban Mandal, NTR District. 3. One CC to Sri Vemuru V.P. Lakshminarasimha Murthy, Advocate [OPUC] 4. Two CCs to GP for Registration and Stamps, High Court of Andhra Pradesh. [OUT] 5. One CC to Sri Venkat Chalasani, Advocate (OPUC) 6. Three C.D. Copies. Cnr HIGH COURT CNR DATED:24/01/2025 ANos;^ 10 FEB 2025 I cn COMMON ORDER O Co . Current Section ^ ^ WP.Nos.24679 and 24681 of 2024 ALLOWING THE W.Ps WITHOUT COSTS