Case Note & Summary
The petitioner, Kalidass, filed a writ petition under Article 226 of the Constitution of India before the Madurai Bench of the Madras High Court seeking a mandamus directing the Inspector General of Registration and the Sub-Registrar (respondents 1 and 2) to permit the filing of a sale certificate dated 20.04.2023 issued by the Authorised Officer of The South Indian Bank Limited (respondent 3) and to make entries in Book I as contemplated under Section 89(4) of the Registration Act, 1908. The petitioner also sought a direction that the respondents not insist upon levy of stamp duty and registration charges while making such entries. The background of the case is that the secured creditor, holding first charge over the property, initiated auction proceedings to recover dues. The property was sold through public auction, and the highest bidder (the petitioner) was issued a sale certificate by the Authorised Officer. Under Section 89(4) of the Registration Act, the Authorised Officer communicated to the Registering Authority to make entries in Book I. However, the Registering Authority failed to do so, compelling the petitioner to approach the court. The learned counsel for the petitioner argued that the issue is no longer res integra, citing the Supreme Court judgment in Esjaypee Impex Private Limited v. Assistant General Manager. The court, after hearing the parties, held that the sale certificate issued under the SARFAESI Act is not a conveyance but a certificate of sale, and the entry in Book I under Section 89(4) is a ministerial act that does not require payment of stamp duty or registration charges. The court directed the respondents 1 and 2 to permit the filing of the sale certificate and make entries in Book I without insisting on stamp duty and registration charges.
Headnote
A) Registration Act, 1908 - Section 89(4) - Entry of Sale Certificate in Book I - Sale certificate issued by authorised officer under SARFAESI Act is required to be entered in Book I by the Registering Authority without insisting on payment of stamp duty or registration charges - The entry under Section 89(4) is a ministerial act and not a registration of a document - Held that the Registering Authority must permit filing of the sale certificate and make entries in Book I without levy of stamp duty and registration charges (Paras 3-5).
Issue of Consideration
Whether the Sale Certificate issued by the authorised officer under the SARFAESI Act is to be entered in Book No.1 by the Registering Authority under the Registration Act, 1908, and whether stamp duty and registration charges can be insisted upon for such entry.
Final Decision
The court allowed the writ petition and directed respondents 1 and 2 to permit the filing of the sale certificate dated 20.04.2023 issued by the third respondent and make entries in Book I as contemplated under Section 89(4) of the Registration Act, 1908, without insisting upon the levy of stamp duty and registration charges.
Law Points
- Sale certificate issued by authorised officer under SARFAESI Act is not a conveyance but a certificate of sale
- Entry in Book I under Section 89(4) of Registration Act
- 1908 does not require payment of stamp duty or registration charges
- Registering authority cannot insist on stamp duty for making entries under Section 89(4)
