Sale under SARFEASI Act –Vs- Attachment under Chit Funds Act – Priority case

Context :
Mortgage by deposit of title deeds created on 19/02/2010 by executing Memorandum of Deposit and presented for registration on the same day. However, Registration completed on 27/01/2011. On default in repayment of loan, the property sold by secured creditor. But registration refused by Sub-Registrar in view of order of attachment obtained by Chit Fund Company on 25/01/2011

Question :
Whether the attachment order by Arbitrator under Chit Funds Act prohibits sale under SARFEASI Act ?

Answer :
The mortgage was created earlier to order of attachment. Subsequent registration of Memorandum of Deposit of Title deed dates back to the date of execution. Hence sale deed by secured creditor directed to be registered.

Reference :
Punjab National Bank –Vs- The Secretary to Government, Commercial Taxes and Registration Department – W.P.No:16847 of 2015 – Hon’ble Mr.Justice M.M.Sundresh – Order dated 01/10/2015

Quick Contact

Best Law Firm in Delhi
Referesh

Contact Us

  • Registered Office
  • E-165, Kamla Nagar,
    Delhi-110007
  • Delhi Office
  • Regus,Suite No. 06 & 07, Lower Ground Floor, at Shivaji Stadium Metro Station, Airport Express Line, New Delhi-110001
  • Office Phone No.
  • (+91) 11 6679 7788
  • Office Fax No.
  • (+91) 11 6679 7703
  • Delhi Office 2
  • Level 1, (Regus) Red Fort Capital Parsvnath Towers, Bhai Veer Singh Marg, Gole Market, New Delhi 110001
  • Phone no:
  • (+91) 11 6678 2492
  • Fax no:
  • (+91) 11 6678 2403
  • UAE Office
  • PO Box-3718, Ajman, UAE
  • London Office
  • 82 Clenshaw Path Basildon Essex SS142FP United Kingdom
  • Email Address

  • info@conceptlegalinternational.com
    raj@conceptlegalinternational.com