Statutory priority of secured creditors prevails over prior attachment before judgment, allowing registration of the sale certificate.

Statutory priority under Section 26-E of the SARFAESI Act and Section 31-B of the RDDBFI Act prevails over earlier attachment-before-judgment entries, because the non obstante provisions give secured debts precedence over other claims and dues. On that basis, a prior attachment cannot bar registration of a sale certificate issued by a secured creditor in enforcement of its security interest. The objection based on prior attachments was rejected and the refusal to register the sale certificate was set aside.

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Issues: Whether attachment before judgment could prevent registration of the sale certificate issued by a secured creditor under the SARFAESI regime.

Analysis: The secured creditor had enforced its security interest and issued a sale certificate in favour of the auction purchaser. The Court relied on the statutory priority conferred on secured creditors under Section 26-E of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and Section 31-B of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. Those provisions give secured debts priority over other debts and governmental dues by virtue of their non obstante language. On that basis, the Court held that attachment before judgment cannot operate as a bar to registration of the sale certificate.

Conclusion: The objection based on prior attachments was rejected and the registration of the sale certificate was directed to be completed.

Final Conclusion: The secured creditor's statutory priority prevailed over the earlier attachment entries, and the impugned refusal to register the sale certificate was set aside.

Ratio Decidendi: A prior attachment before judgment does not defeat the statutory priority of a secured creditor to realise and register sale of secured assets under the overriding provisions governing secured debts.

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