HC to Karnataka: Ensure sub-registrars register property documents

Bharathgowda moved the high court as the sub-registrar orally refused to register the sale certificate dated September 30, 2022.
Karnataka High Court
Karnataka High CourtPhoto | Express

BENGALURU: Taking serious note of numerous cases being filed, questioning the refusal of sub-registrars to register documents related to properties, or sale certificates of properties auctioned by banks, the Karnataka High Court directed the state government to issue a circular to sub-registrars across the state, to ensure that people who want to get their documents registered need not knock on the doors of the court every time.

Justice M Nagaprasanna passed the order while directing the JP Nagar sub-registrar to register a sale certificate issued by Canara Bank in favour of T Bharathgowda, who bought a property in Wilson Garden through auction, as the property owners failed to repay the bank loan.

Bharathgowda moved the high court as the sub-registrar orally refused to register the sale certificate dated September 30, 2022, on the grounds that the property owners owe dues to the income tax department, without issuing any written endorsement.

The high court said the apex court holds that dues of the secured creditor, bank or other financial institution has priority over dues of the central excise department under the Central Excise Act. The apex court also holds provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2022, will have an overriding effect on the provisions of the Central Excise Act, the high court said.     

“Unless any violation is noticed under Rule 171 of the Karnataka Registration Rules,1965, the sub-registrar does not have the jurisdiction to refuse registration of a document. Therefore, it is necessary for the state government to issue a circular in terms of Rule 171,” the court said.

The court noted that sub-registrars refuse to register documents, sometimes on the grounds that software in the registration department or sub-registrar’s office is not compliant with registration of documents of banks. In certain cases, statutory dues by the borrower or holder of the document are not cleared, therefore, they are not registered. All these are reasons are beyond the statute for refusing to register documents, the court said.

The court cautioned that if the sub-registrar does not register a document, and it is found to be in tune with the law, the delay would be attributable only to the sub-registrar, who will be saddled with exemplary costs when such cases are brought before court.

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