Case Note & Summary
The petitioner, M/s. MGM Pooja Buildtech Private Limited, purchased a property (Plot No.108, Metagali, K.R.S. Road, Mysore, measuring 4,056 sq. meters) in a public auction conducted by the first respondent, Punjab National Bank, under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) for Rs.80,91,000/-. The bank issued a sale certificate on 27.4.2010 in favor of the petitioner. The bank's authorized officer forwarded the sale certificate to the Sub-Registrar, Mysore North (second respondent) for making necessary entries in Book No.I under Section 89(4) of the Registration Act, 1908. However, the Sub-Registrar issued an endorsement dated 22.2.2013 (Annexure-G) refusing to register the sale certificate on the ground that it was presented beyond the period of limitation prescribed under the Registration Act. The petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India seeking quashing of the endorsement and a direction to the Sub-Registrar to register the sale certificate. The Court examined the provisions of Section 89(4) of the Registration Act and noted that it does not prescribe any period of limitation for filing a copy of the sale certificate by a bank or its authorized officer. The Court held that the Sub-Registrar is bound to register the sale certificate without insisting on any time limit. The Court quashed the endorsement dated 22.2.2013 and directed the Sub-Registrar to register the sale certificate in accordance with law.
Headnote
A) Registration Act, 1908 - Section 89(4) - Limitation for Registration - Sale Certificate - The Sub-Registrar rejected the sale certificate presented by the bank under Section 89(4) of the Registration Act, 1908 as time-barred. The Court held that Section 89(4) does not prescribe any period of limitation for filing a copy of the sale certificate by a bank or its authorized officer. The Sub-Registrar is bound to register the same without insisting on any time limit. The endorsement rejecting registration was quashed. (Paras 1-5) B) Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - Sale Certificate - Registration - The petitioner purchased property in a public auction conducted by the bank under the SARFAESI Act. The bank issued a sale certificate on 27.4.2010 and forwarded it to the Sub-Registrar for registration under Section 89(4) of the Registration Act. The Court directed the Sub-Registrar to register the sale certificate without reference to any period of limitation. (Paras 2-5)
Issue of Consideration
Whether the Sub-Registrar can refuse to register a sale certificate under Section 89(4) of the Registration Act, 1908 on the ground that it was presented beyond the period of limitation prescribed under the Act.
Final Decision
The writ petition is allowed. The endorsement dated 22.2.2013 (Annexure-G) issued by the second respondent is quashed. The second respondent is directed to register the sale certificate dated 27.4.2010 (Annexure-A) in accordance with law.
Law Points
- Registration Act
- 1908
- Section 89(4) does not prescribe any period of limitation for filing sale certificate by a bank
- Sub-Registrar cannot reject registration on ground of delay
- SARFAESI Act
- 2002
- Section 13(4) and Rule 9 of Security Interest (Enforcement) Rules
- 2002.
