#court attachment

The Madras High Court has ruled that a secured creditor’s SARFAESI sale certificate cannot be blocked from registration merely due to a prior court attachment by an unsecured creditor. This affirms the primacy of secured interests under the SARFAESI Act and invalidates non-speaking orders that deny registration without hearing - a procedural safeguard critical for asset reconstruction companies and financial institutions enforcing security interests.

Madras High Court ruled that mere court attachment of property does not automatically bar registration of a sale deed if the buyer is bona fide. The Court quashed a refusal order for being non-speaking and violating natural justice, reinforcing that administrative actions must consider legal precedents permitting registration despite attachments.