M/S. UGRO CAPITAL LIMITED vs SUB REGISTRAR

Court
Madras High Court

WP No. 278 of 2026
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 08-10-2026
CORAM
THE HON'BLE MR.JUSTICE MOHAMMED SHAFFIQ
WP No. 278 of 2026
CNR: {HCMA012974292025}
M/s. Ugro Capital Limited
No.8-17, Shafi Mohammed Road,
1st Floor, Sunny Side (west Block),
West Thousand Lights,
Nungambakkam, Chennai-600 006
Rep. By its Legal Manager,
Mr. R. Arun.
..Petitioner(s)
Vs
1. Sub Registrar,
Villivakkam Panchayat Union,
Office Complex, Dunlop Ambattur,
Chennai-600 053.
2. Mr. Ravichandran G.
3. M/s. Kandan Traders,
Partnership Firm,
Plot No.12 Rajaji Street,
Naravarikuppam, Redhills,
Chennai-600 052.
4. Mr. Chandrasekar Kandan
5. Mrs. Rajalakshmi
6. Vijayakubendhran
(R6 impleaded vide order dated 17.09.2026
Made In WMP No. 14763/2026 in WP
No.278/2026 By MSQJ)
..Respondent(s)
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WP No. 278 of 2026
Prayer: Writ Petition is filed under Article 226 of the Constitution of India,
praying for Writ of Certiorarified Mandamus, praying to call for the records
pertaining to Refusal Slip No. RFL1 Ambattur 38/2025 dated 01.11.2025 and
quash the same consequently direct the 1st respondent to register the sale
certificate dated 16.10.2025 issued by the petitioner in favour of the 2nd
respondent presented to 1st respondent vide T.P.No. 237273799 of 2025
(Prayer amended vide Order dated 17.09.2026 made in WMP No.12220/2026
in WP No.278/2026 by MSQJ)
For Petitioner(s): Mr.R.Imayavaramban
For Respondent(s): Mr.Dominic S.David,
Special Government Pleader for R1.
ORDER
The present writ petition is filed challenging the refusal check slip dated
01.11.2025, whereby Sale Certificate presented for registration in respect of
property comprised in Survey No.575/1B, corresponding to New T.S. No.30,
Ward No.16, Thirumullaivoyal, Ward D, Block 983, measuring an extent of
2,445 sq. ft., situated at Manikandapuram (as per the Property Tax Assessment,
Manikandapuram 1st Right Street), Thirumullaivoyal Village, Avadi Taluk,
Tiruvallur District was refused on the premise that respondent authorities had
received a communication from Central Crime Branch, Avadi vide letter dated
17.10.2025 requesting them not to proceed with registration of the subject
property.
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WP No. 278 of 2026
2. Learned counsel appearing for petitioner would submit that mere
registration of a criminal case / letter issued by Inspector of Police/authorities
cannot constitute a bar to proceeding with registration. In support of his
submission, reliance is placed on the order passed by this Court in W.P.
No.12289 of 2020, dated 09.09.2020, wherein the following observations were
made:
“5. The issue that has been raised in the present writ petition was
already considered by this Court in W.P.No.1680 of 2020 by an
order dated 03.08.2020. The relevant portions in the order is
extracted hereunder.
“5.The learned counsel appearing on behalf of the petitioner
submitted that the petitioner is a bona fide purchaser who
had nothing to do with the alleged crime, which is a subject
matter of investigation in Crime No.2 of 2018. It was further
submitted that a mere letter issued by the Police, cannot be a
ground to refuse registration unless there is an order of the
Court or some order of attachment is passed by the
Competent Authority under the relevant Enactment.
06....
7.Mr.Annai Ezhil, learned Government Advocate appearing
on behalf of the fourth respondent submitted that there is a
criminal case that is pending investigation against M/s.
Royal Agro Dairy Limited and the persons who were in-
charge in running this Company, have cheated a large
number of depositors running to several crores of rupees. It
was further submitted that the police was able to identify
certain properties which have been attached and which are
going to be used for the purpose of settling the dues to the
innocent depositors.The learned counsel therefore submitted
that till the investigation is completed, with regard to the
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WP No. 278 of 2026
property which is the subject matter in this writ petition, the
third respondent should not register any property standing
in the name of M/s.Royal Agro Dairy Limited.
8.Mr.T.M.Pappiah, learned Special Government Pleader
appearing on behalf of respondents 2 and 3 submitted that in
view of the letter submitted by the Investigation Officer, the
third respondent has made an entry in the Encumbrance
Certificate and now he cannot go against the said entry and
entertain any document that pertains to M/s. Royal Agro
Dairy Limited and which covers the Survey Numbers
mentioned in the Encumbrance Certificate.The learned
counsel further submitted that the third respondent will act
in accordance with any directions that may be issued by this
Court.
09...
10...
11.The concerned Investigation Officer has merely issued a
letter to the third respondent, requesting the third
respondent not to register any property standing in the name
of M/s Royal Agro Dairy Limited. If the fourth respondent
was sure about the fact that the property in question was
also one which was purchased out of the criminal proceeds,
then steps should have been taken to get the property
attached as per the provisions of TANPID ACT. These steps
have not been taken till date. The entry in the Encumbrance
Certificate is based on only a letter.
12.It is now a well settled principle of law that the Bank has
a priority over all the debts and the Government dues. The
Hon’ble Full Bench of this Court in the case of The Assistant
Commissioner (CT) Vs. Indian Overseas Bank reported in
2016 6 CTC 769 has held that on a conjoint reading of
Section 26(E) of the SARFAESI ACT and Section 31(b) of
the Recovery of Debt Due to Bank and Financial Institutions
Act, 1993, it is the secured creditor who was a
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WP No. 278 of 2026
priority to realise the debt over all the other Government
dues and unsecured creditors. Thus, the first respondent
Bank will have a priority when it comes to realising the debt
of a secured creditor.
13.In view of the above discussion, the third respondent
cannot refuse to register the Sale Certificate merely on the
basis of the letter given by the Investigation Officer. The
refusal slip issued by the third respondent on 24.03.2019 is
hereby quashed. The third respondent is directed to receive
the Sale Certificate dated 17.12.2019 from the petitioner and
register the same on payment of the necessary stamp duty
and registration charges and if the document is otherwise in
order. It is made clear that the directions issued to the third
respondent, confines only to the Sale Certificate issued in
favour of the petitioner. This order should not be construed,
as if, all the documents that stands in the name of M/s. Royal
Agro Dairy Limited can be registered. As and when any such
document is presented, it is the duty of the third respondent
to bring it to the notice of the Investigation Officer. This
direction is issued since it involves public interest where
several depositors are said to have been cheated and they
have lost their hard earned money. The Investigation Officer
shall take immediate steps to get the property attached by
the Competent Authority under the relevant Enactment. The
direction issued by this Court in this writ petition will
confine itself to the peculiar facts of the present case and it
cannot be taken as a precedent for registration of any other
document which is the subject matter of the criminal
proceedings in Crime No.2 of 2018.”
6. In the above order, this Court has categorically held against the
refusal of registration of documents merely based on letters issued
by the Police unless a proper order of attachment is obtained from
the competent authority under the relevant enactment. In view of
the same, the second respondent cannot prevent the petitioners
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WP No. 278 of 2026
from submitting documents for registration merely based on the
letter issued by the police. In fact, such a letter should not be
recorded in an Encumbrance Certificate since it is beyond the
jurisdiction of the Police to restrain the owners of the property
from dealing with the same. Therefore the second respondent shall
also delete the entry made in the Encumbrance Certificate.””
3. To the contrary, learned Special Government Pleader appearing for
first respondent would submit that the writ petition itself is premature inasmuch
as it is only a refusal check slip. Petitioner may submit its response/objections
along with relevant documents before the concerned authority. In support of his
submission, reliance is placed on the order of the Division Bench of this Court
in W.P.No.21941 of 2025, dated 28.10.2025. Relevant observations are
extracted hereunder:
“13. Pertinently, at initial stage of issuance of a refusal slip by
Registering Authority, civil rights or right of presentant of a
document for registration cannot be determined either by
Registering Authority or by Writ Court. It is a preliminary stage,
where they are bound to call for explanation from presentant of
document, along with supportive documents, if any, and an
adjudicatory process is to be undertaken to arrive at a final
decision, enabling an aggrieved person to approach Appellate
Authority and thereafter Civil Court under Sections 72 and 77 of
Act respectively.
14. Under Sections 71 and 72 of Registration Act, neither
Registering Authority nor Appellate Authority is empowered to
decide title, ownership, or civil rights between parties. Extent of
inquiry is to be confined so as to find out whether document
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presented under Act can be registered or refused. Therefore,
Registering Authority is not empowered to go into merits of case
and decide title, ownership, or civil rights between parties.
15. Any inquiry or findings made thereunder are to be confined
only to an extent of registration of a document, and findings by
Registering Authority or Appellate Authority cannot be taken into
consideration for purpose of determining civil rights between
parties.
4. In view of the above submissions, it is open to the petitioner to re-
present Sale Certificate before concerned Registering Authority along with his
response/objections and relevant supporting documents. It is also open to the
petitioner to place reliance on the judgment of this Court as well as the Hon’ble
Supreme Court, if any, including the order passed by this Court in W.P.
No.12289 of 2020, dated 09.09.2020. On such re-presentation, concerned
authority shall consider the response/objections of petitioner as well as
objectors, if any, and proceed with registration of Sale Certificate, if it is
otherwise in order, in accordance with law, keeping in view the principles laid
down by this Court in W.P. No.12289 of 2020, dated 09.09.2020. If, for any
reason, Registering Authority refuses to register the Sale Certificate, the same
would be returned to petitioner by issuing a refusal order assigning reasons
therefor. Agreed to by both learned counsel for petitioner as well as first
respondent. It is made clear that this Court has not expressed any opinion on the
merits of claim or objections raised by either side. The concerned authority shall
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consider the matter on its own merits and pass appropriate orders in accordance
with law.
5. The writ petition stands disposed of accordingly. No costs.
08-10-2026
SHK
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WP No. 278 of 2026
To
1. Sub Registrar,
Villivakkam Panchayat Union,
Office Complex, Dunlop Ambattur,
Chennai-600 053.
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WP No. 278 of 2026
MOHAMMED SHAFFIQ, J.
SHK
WP No. 278 of 2026
08-10-2026
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