SARFAESI ACT not restricted by providing priority to the secured creditors / Banks, but extents its protection to the non~secured and statutory creditors. Therefore, the secured creditors / financial institutions, while invoking the provisions of the SARFAESI Act, and the rules framed thereunder are mandated to follow the procedures scrupulously so as to ensure that other non~secured creditors are not deprived of their rights to realise their statutory or other dues - auction sale is made with encumbrances, then the registering authority under the Registration Act cannot remove the same.

Citation

2023:MHC 4063

 IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED  : 08~09~2023

CORAM

THE HONOURABLE MR.JUSTICE S.M.SUBRAMANIAM

WP No.25363 of 2023



Dr.M.N.Sadasivam                    ...  Petitioner

                                Vs.

1.The Inspector General of Registration,
   100, Santhome High Road,
   Mylapore,
   Chennai~600 004.

2.The Sub Registrar,
   Anna Nagar,
   Chennai~600 040.

3.Asset Reconstruction Company (India) Limited,
   The Ruby, 10th Floor,
   29, Senapati Bapat Marg,
   Dadar (West),
   Mumbai – 400 028.                    ...   Respondents