SARFAESI Act Prevails Over Tax Claims: Madras HC Directs Registration of Property Sale Certificate

SARFAESI Act Prevails Over Tax Claims: Madras HC Directs Registration of Property Sale Certificate The Madras High Court has reiterated that the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, which empowers banks 1 to recover bad loans, takes precedence over government tax claims. The court directed the registration of a property sale certificate issued under the SARFAESI Act, clarifying that the buyer's title cannot be hindered by pending tax dues from the previous owner. This ruling strengthens the position of secured creditors in debt recovery and facilitates faster resolution of non-performing assets.