Prior mortgage and completed SARFAESI sale prevail over later attachment; registration and record correction can be compelled.

A prior mortgage and a SARFAESI auction sale completed before a later civil court attachment were held to prevail over that subsequent attachment, so the sale certificate was directed to be registered and the attachment entry was ordered to be removed from the records. The court also noted that, where no actual refusal order under the Registration Act had been issued, the statutory appeal route under Sections 72 and 77 was not available on the facts, and writ jurisdiction under Article 226 could be invoked against an illegal or arbitrary refusal. The ruling protects the efficacy of completed secured transactions against later attachments.

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Issues: Whether a sale certificate arising from a SARFAESI sale, where the mortgage and sale preceded the attachment, could be directed to be registered notwithstanding the subsequent attachment, and whether the consequential attachment entry could be effaced from the relevant records.

Analysis: The property had been mortgaged long before the attachment, and the secured asset was sold in auction before the civil court attachment was obtained. A prior mortgage creates an encumbrance, while a subsequent attachment does not defeat the rights flowing from the mortgage or the completed sale under SARFAESI proceedings. The absence of an actual refusal order under the Registration Act also meant that the statutory appellate route under Sections 72 and 77 was not available on the facts, and the writ jurisdiction under Article 226 could be invoked against an illegal and arbitrary refusal. Since the attachment was only subsequent and had no legal sustenance against the completed sale, the consequential request to remove its noting from the records was also liable to be granted.

Conclusion: The sale certificate was directed to be registered, and the attachment entry was directed to be effaced from the concerned records.

Final Conclusion: The writ petition succeeded by protecting the efficacy of the prior secured transaction and by granting consequential relief against the later attachment.

Ratio Decidendi: A subsequent civil court attachment cannot prevail over a prior mortgage and a completed SARFAESI sale, and in the absence of a statutory refusal order, the High Court may grant mandamus under Article 226 to compel registration and consequential correction of records.

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