# In the matter of HDB Financial Services Ltd. vs. Sub Registrar and Ors.

> HC judgment dated 2025-02-21. Citation: TCN-2025-HC-00042. HDB Financial Services Limited, a Non-Banking Financial Company, filed a writ petition seeking a…

- **Court:** HC
- **Order date:** 21 Feb 2025
- **Citation:** TCN-2025-HC-00042
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/hdb-financial-services-ltd-vs-sub-registrar-and-ors-eca35ffd

## Summary

### Background

HDB Financial Services Limited, a Non-Banking Financial Company, filed a writ petition seeking a writ of mandamus to direct the 2nd respondent (The Village Officer) to register a sale certificate (Ext.P3) issued by the petitioner. This certificate was issued in accordance with the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The petitioner also sought a direction to the revenue authorities to carry out the mutation of the property covered by the sale certificate.

## Facts

Rajeev A.R and Sunitha Kumari S.R (the borrowers) obtained loans from HDB Financial Services Limited (the petitioner) by mortgaging land (01.69 Ares in Re-Survey No. 4/149) and a building (No. TC 69/123(2)) in Manacaud Village, Thiruvananthapuram Taluk. The borrowers defaulted, prompting the petitioner to initiate SARFAESI Act proceedings. Physical possession was taken on 2023-12-05. The property was auctioned and sold to R. Shanavas (3rd respondent) for Rs. 56,10,443/-. When R. Shanavas attempted to register the sale certificate, he was informed that the Deputy Superintendent, Crime Branch, Economic Offence (4th respondent) had issued a communication restraining the transfer, due to FIRs against Rajeev A.R for misappropriating funds of the BSNL Engineers Co-operative

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## Issues and analysis

### Issue 1: Whether the proceedings under the Banning of Unregulated Deposit Schemes Act, 2019 (BUDS Act) can …

**Ratio:** The 'save as otherwise provided' clause in Sections 12 and 13 of the BUDS Act gives

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**Reasoning:** The court relied on the 'save as otherwise provided' clause in the BUDS Act, which

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**Interpretation:** The 'save as otherwise provided' clause is interpreted as a legislative intent

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**Application:** In this case, the communication from the 4th respondent, based on the BUDS Act,

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## Parties

- **Judges:** GOPINAT…
- **Appellants:** HDB FINANCIAL…
- **Respondents:** THE SUB REG…
- **Other parties:** Kohi…

## Timeline

- **2023-02-27 — Communication…**: The Deputy Superintendent, Crime Branch, Economic Offence issued a communication…
- **2023-01-31 — FIR Regis…**: FIR No. 81/2023 was registered by the State Crime Branch against Rajeev A.R for…

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