NDLI: Asset Reconstruction Company (india) Limited Vs. S. P. Velayutham & Ors

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Constitution of India – Art.226 – Jurisdiction under
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Constitution of India – Art. 226 – Jurisdiction under – Failure of registering authority to perform its duties – The borrower defaulted in repayment of the loan pursuant to which the Bank issued a demand notice u/s. 13(2) of the Securitisation Act – Bank which already initiated proceedings under the Securitisation Act, assigned the debt and the collateral security in favour of the appellant – By deed of PoA, the power of sale is said to have been conferred upon the agent, but this was un-registered - On the basis of deed of PoA, which did not confer a power of sale, respondent sold the property to his son A – The appellant filed a writ petition seeking a declaration that the act of the sub-registrar in registering the sale deed was null and void – Single Judge allowed the petition on the ground that there was utter failure on the part of the Registering Authority to follow the mandate of law as prescribed in Sections 32 to 35 of the Registration Act, 1908 – Division Bench held that the appellant is guilty of violating the order passed by Supreme Court in the proceedings arising out of the order of the Sub-Divisional Magistrate under Section 145 of the Cr.P.C – Whether the invocation of the writ jurisdiction of the High Court by the appellant was right, especially when civil suits at the instance of third parties are pending – Held: If a party questions the very execution of a document or the right and title of a person to execute a document and present it for registration, his remedy will only be to go to the civil court – But where a party questions only the failure of the Registering Authority to perform his statutory duties in the course of the third step, it cannot be said that the jurisdiction of the High Court under Article 226 stands completely ousted – When a High Court, in exercise of its jurisdiction under Article 226 finds that there was utter failure on the part of the Registering Authority to stick to the mandate of law, the Court merely cancels the act of registration, but does not declare the very execution of the document to be null and void – Examining whether the Registering Authority did something in the manner required by law or otherwise, is certainly within the jurisdiction of the High Court under Article 226 – Therefore, the Single Judge rightly applied the law and allowed the writ petition filed by the appellant, but the Division Bench got carried away by the sound and fury created by the contesting respondents. Registration Act, 1908 - ss. 32, 33, 34 & 69(1) – Tamil Nadu Registration Rules - Rules 46, 48, 49, 52 – A careful look at Sections 32 and 33 will show that while speaking about PoA, these provisions do not use the word “registration” – While Section 32(c) uses the words “executed and authenticated”, Section 33(1) uses the words “recognised” and “authenticated” – Therefore it is clear that the word “authenticated” is not to be understood to be the same as “registered” – Whenever an agent is authorised to execute a document and present the same for registration and he accordingly executes the document in terms of PoA, he becomes the actual executant in so far as the Registering Authority is concerned and that therefore he becomes entitled under Section 33(a) to present it for registration.
Judge	Hon'ble Mr. Justice V. Ramasubramanian
Neutral Citation	2022 INSC 509
Petitioner	Asset Reconstruction Company (india) Limited
Respondent	S. P. Velayutham & Ors
SCR	[2022] 17 S.C.R. 637
Judgement Date	2022-05-04
Case Number	2752

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