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2025 DAILYLAW 51766 (KAR)

THE JANATHA CO OP BANK LTD v. THE STATE OF KARNATAKA

WP/34468/2025 · 2025-11-24

Suraj Govindaraj

body2025

Judgment text

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- 1 - HC-KAR NC: 2025:KHC:48465 WP No. 34468 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 34468 OF 2025 (GM-RES) BETWEEN: 1. THE JANATHA CO OP BANK LTD ADMINISTRATIVE OFFICE: NO.156, 8TH MAIN ROAD, 17TH CROSS, MALLESHWARAM WEST, BENGALURU - 560 055. REPRESENTED BY ITS AUTHORISED OFFICER, CHIEF EXECUTIVE OFFICER, MRS. VINODA SHIVARAMAIAH, 2. SRI BASAPPA S, S/O SRI SIDDAPPA, AGED ABOUT 85 YEARS, R/AT 940/A, 1ST D CROSS, 2ND STAGE, RAJAJINAGAR, BENGALURU - 560 010. 3. SMT. PANKAJAKSHI, W/O SRI. BASAPPA S., AGED ABOUT 75 YEARS, R/AT 940/A, 1ST D CROSS, 2ND STAGE, RAJAJINAGAR, BENGALURU - 560 010. &PETITIONERS (BY SRI. K.V. LOKESH, ADVOCATE) Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:48465 WP No. 34468 of 2025 AND: 1. THE STATE OF KARNATAKA REVENUE DEPARTMENT MULTI STORIED BUILDING DR. AMBEDKAR VEEDI BENGALURU - 560 001 BY ITS SECRETARY. 2. THE DISTRICT REGISTRAR GANDHI NAGAR AT NO.70/16, 2ND MAIN ROAD, VYALIKAVAL, KODANDARAMPURA, MALLESHWARAM, BENGALURU - 560 003 3. THE SUB REGISTRAR OFFICE, NO.89 B, 2ND FLOOR, 5TH MAIN, INDUSTRIAL ESTATE, RAJAJINAGAR, BANGALORE - 560 044. 4. MRS. SHARADAMMA, S/O MR. VENKATASWAMY, AGED ABOUT 66 YEARS, R/AT NO.98, 10TH MAIN ROAD, MANJUNATHNAGAR, BANGALORE - 560 010. 5. MR. SRINIVASAN V S/O MR. VENKATASWAMY, AGED ABOUT 38 YEARS, R/AT NO.98, 10TH MAIN ROAD, MANJUNATHNAGAR, BANGALORE - 560 010. - 3 - HC-KAR NC: 2025:KHC:48465 WP No. 34468 of 2025 6. MR. MANJUNATH V S/O MR. VENKATASWAMY, AGED ABOUT 38 YEARS, R/AT NO.98, 10TH MAIN ROAD, MANJUNATHNAGAR, BANGALORE - 560 010. 7. RATHNA V D/O LATE VENKATASWAMY AGED ABOUT 48 YEARS, R/AT, NO.5, SRINAGAR, PALLAVI SUPER MARKET ROAD, HOUR, HOSUR KRISHNAGIRI, TAMILNADU - 635 109. 8. MANJULA V D/O LATE VENKATASWAMY AGED ABOUT 45 YEARS, R/AT NO.60, 7TH CROSS, MUNINARASIMHAIAH GARDEN, TAVAREKERE, BTM 1ST STAGE, BENGALURU - 560 029. 9. GOWRAMMA V D/O LATE VENKATASWAMY AGED ABOUT 43 YEARS, R/AT, NO.98, 10TH MAIN, 10TH CROSS, MANJUNATH NAGAR, BENGALURU - 560 010. 10. PADMA V D/O LATE VENKATASWAMY, AGED ABOUT 42 YEARS, R/AT, NO.98, 10TH MAIN, 10TH CROSS, MANJUNATH NAGAR, - 4 - HC-KAR NC: 2025:KHC:48465 WP No. 34468 of 2025 RAJAJINAGAR, BENGALURU - 560 010. &RESPONDENTS (BY SRI. B. RAVINDRANATH, AGA FOR R1 TO R3; R4 TO R10 ARE DELETED, VIDE ORDER DATED 24.11.2025) *** THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT ORDER OR DIRECTION IN THE NATURE OF MANDAMUS TO R2 AND R3 TO REGISTER THE SALE CERTIFICATE DATED 21.10.2025 ISSUED BY THE PETITIONR NO.1 BANK IN FAVOUR OF PETITIONERS NO.2 AND 3 (ANNX-E) BY TAKING REQUISITE STAMP DUTY AND REGISTRATION CHARGES, ETC. THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ ORAL ORDER 1. Learned Additional Government Advocate accepts notice for respondent Nos.1 to 3. 2. Petitioners are before this Court seeking for the following reliefs: "a) Issue a writ, order or direction in the nature of mandamus to the Respondent No.2 and 3 to register the Sale Certificate dated 21.10.2025 issued by the Petitioner No.1 Bank in favour of Petitioner No.2 & 3 (annexure-E) by taking requisite Stamp Duty and Registration charges. - 5 - HC-KAR NC: 2025:KHC:48465 WP No. 34468 of 2025 b) Issue any other Writ, Order or direction as this Hon'ble Court deems fit in the circumstances of the case in the interest of justice and equity." 3. The short grievance of the first petitioner/Bank and second and third respondents/auction purchasers is that the Sale Certificate, when presented for registration before the third respondent/Sub- Registrar, was not registered by the Sub-Registrar and an endorsement came to be issued on 03.11.2025, at Annexure G, that the suit in O.S.No.6765/2023, where an order of injunction has been passed. 4. It is in that background that the petitioners are before this Court, challenging the refusal to register the Sale Certificate. 5. Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, "SARFAESI Act") prevails over any other - 6 - HC-KAR NC: 2025:KHC:48465 WP No. 34468 of 2025 enactment or any other proceedings which have been initiated. 6. The suit in the present matter is a partition suit filed amongst the borrowers against whom, action has been taken against under the SARFAESI Act. The property having been brought to auction, the right of the Bank prevails over any other right, subject to adjudication of those rights, if an objection has been raised. 7. The respondent No.3/Sub-Registrar could not have denied registration of the Sale Deed, as held by the learned Single Judge of this Court in Writ Petition No.26982/2023 (GM-RES), dated 22.01.2024, who, in turn, has relied upon the decision of the Division Bench of the Punjab and Haryana High Courts in the case of Allahabad Bank Vs. District Magistrate, Ludhiana. 8. In that view of the matter, I pass the following: - 7 - HC-KAR NC: 2025:KHC:48465 WP No. 34468 of 2025 ORDER i) The Writ petition is allowed; ii) A mandamus is issued, directing respondent Nos.2 and 3 to register the Sale Certificate dated 21.10.2025 issued by the petitioner No.1/Bank in favour of petitioner Nos.2 and 3, at Annexure E. iii) The rights of petitioner Nos.2 and 3 shall anyway be subject to the result of the Suit or any other proceedings pending between the borrowers and the third party. SD/- (SURAJ GOVINDARAJ) JUDGE BMV* List No.: 1 Sl No.: 24 CT-SG