Circular No. 21343/C1/2021, Registration of Auction Sale Certificates
The Head of the Tamil Nadu Registration Department issued Circular No. 21343/C1/2021, dated 10 July 2021, directing registering officers not to refuse a bank issued auction sale certificate solely because a civil court attachment order is recorded against the property. Registration must proceed when the bank acts as a secured creditor and all other legal requirements have been met.
What the circular governs
Circular No. 21343/C1/2021, dated 10 July 2021, concerns registration of sale certificates issued after properties are sold by auction for recovery of unpaid secured loans. It follows a Madras High Court judgment dated 25 June 2021 concerning a sale certificate that had been refused registration because a court attachment was already recorded against the property.
The direction applies to registering officers across Tamil Nadu and is particularly relevant to banks, auction purchasers and people dealing with properties carrying civil court attachments.
Direction to registering officers
The Head of the Tamil Nadu Registration Department instructs registering officers that:
- A sale certificate issued by a bank acting as a secured creditor must not be refused merely because a court has attached the property.
- A registering officer must not issue a check slip or refusal order on that ground.
- Registration must not be stopped because of the civil court attachment.
- Registration may proceed only after all other legal requirements have been fulfilled.
The Madras High Court stated that registering authorities cannot refuse such sale certificates because of civil court attachment orders. The judgment referred to Sections 31-B and 34 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993, and stated that the rights of secured creditors override other debts. It also stated that refusal on the attachment ground could amount to contempt of court.
Existing document checks
Circular No. 21343/C1/2021 also recalls earlier Registration Department instructions intended to prevent forged documents and impersonation. Those instructions required registering officers to examine property ownership records and the encumbrance certificate before accepting a document.
The earlier guidance required the person presenting a document to provide an encumbrance certificate obtained within the preceding 10 days. The registering officer was expected to confirm from that certificate that the document was being executed by the person shown as the latest purchaser or owner.
Practical effect for auction purchasers
A purchaser holding a bank issued auction sale certificate should not face refusal solely because the encumbrance certificate shows a civil court attachment. The purchaser and bank must still satisfy every other legal requirement applicable to registration.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Can a Sub Registrar refuse my bank auction sale certificate because the property has a civil court attachment?
No. Circular No. 21343/C1/2021 says a sale certificate issued by a bank as a secured creditor must not be refused solely because of a civil court attachment order.
Does the circular require registration even if other legal requirements are incomplete?
No. Registration is directed only when all other legal requirements have been fulfilled.
Can the registering officer issue a check slip because an attachment appears in the encumbrance certificate?
Not on that ground alone. The circular specifically directs registering officers not to issue a check slip or refusal order merely because a court attachment exists.
Does the Registration Department still require examination of the encumbrance certificate?
Yes. The circular recalls earlier instructions requiring registering officers to examine the encumbrance certificate and ownership records to prevent forged documents and impersonation.
