Legal Question in Banking Law in India

A immovable property was registered mortgaged to a Bank. The property was attached by Income Tax department. The Bank has taken actual possession of the property under SARFAESI Act 2002 and now in process to sell under private sale treaty. In light of this the concern sub Registrar office will register the sale certificate under SARFAESI Act or they will object because of the Income Tax attachment and the registration will not take place. what is the solution to this problame.


Asked on 10/10/10, 7:04 am

2 Answers from Attorneys
Vishwa Arya Arya & Co.

sale certificate cannot be registered as the income tax attachment is there

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Answered on 10/10/10, 9:50 am
J. Radhakrishnan independent Practice

Sale certificate issued under SARFAESI Act is to be sent to Registrar's office and has to be entered in Book 1. It does not require registration. However if the puchaser wants the registration of the Sale certificate, he has to pay stamp duty.you can refer to the ruling of the Madras High Court dated 9.6.2010 in W.P.No.12934/2009 "Cenney Hotels Pvt Ltd Vs. State of Tamil Nadu reported in 2010(4) CTC.802. you can get the part of Current Tamil Nadu cases i.e. 2010 (4) CTC part 7 by sending Rs.120/- to Current Tamil Nadu cases, PB.2917 Sanstrict College Street, Mylapore, Chennai-600014 - website www.ctconline.in. The Income Tax Department attachment cannot prevent the Sale Certificate being registered or entered in Book 1 of the concerned Sub Registry.

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Answered on 10/10/10, 8:28 pm


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