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2025 Supreme(Bom) 1996

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
MADHAV J. JAMDAR, J.
Vasant Shenoy – Appellant
Versus
Sanjay Kumar – Respondent
Interim Application No. 4050 of 2025, Commercial Execution Application No. 125 of 2017
Decided On : 04-12-2025

Advocates Appeared:
For the Appellants : Animesh P. Gupta, Jay Varia
For the Respondent: Rahul Narichania

Sale certificates from auction sales do not require registration under the Registration Act, confirming that title transfers upon sale confirmation.

Headnote:(A) Registration Act, 1908 - Section 17 - Maharashtra Stamp Act, 1958 - Certificate of Sale in auction - Sale certificate does not require compulsory registration - The court clarified that the title transfers upon confirmation of sale and issuance of the sale certificate, which is merely evidence of title - The ruling emphasized the distinction between the objectives of the Stamp Act and Registration Act. (Paras 7, 14, 19)

(B) Legal principles pertaining to the requirement of registration for auction sale certificates were reaffirmed, particularly that under Section 17(2)(xii), such certificates are exempt from mandatory registration - Conditions under which the High Court may intervene in pressing timelines established by the Registration Act were explored. (Paras 8, 20)

Facts of the case:
The appellant purchased a property at auction, but possession was withheld due to non-payment of stamp duty and registration fees. Despite full payment for the auction, the applicant sought a new certificate of sale to comply with statutory requirements.

Findings of Court:
The sale certificate, having been issued under proper authority, does not require mandatory registration—possession to be handed over following payment of stamp duty.

Issues: The primary questions were whether the sale certificate required registration and the implications of the applicant’s delay in processing statutory requirements.

Ratio Decidendi: The court reiterated that auction sale certificates do not require registration under Section 17(2)(xii) of the Registration Act; title vests upon confirmation of sale, thereby establishing a clear legal framework for similar cases moving forward.

Result: Interim Application disposed of with directions for possession to be handed over upon payment of dues.

Table of Content
1. reliefs sought in interim application. (Para 2 , 3 , 4 , 5)
2. applicant's position on payment and possession. (Para 6 , 9 , 10)
3. legislative background regarding registration and stamp duty. (Para 7 , 11 , 13)
4. sales certificate does not require registration. (Para 12 , 14 , 15)
5. modification of previous orders in light of legal principles. (Para 18 , 19 , 20)
6. final order and acknowledgement of amicus curiae. (Para 21 , 22)

JUDGMENT :

MADHAV J. JAMDAR, J.

1. Heard Mr. Animesh Gupta, learned Counsel for the Applicant and Mr. Rahul Narichania, learned Senior Counsel appointed as Amicus.

2. The reliefs sought in this Interim Application are as follows:

“a. To pass an Order/Direction towards Hon’ble Prothonotary and Senior Master, High Court, Bombay to issue a fresh certificate of sale in favour of the Applicant for the said property i.e. Flat no. 404, ILA Apartments, Section 4, RDP 7, Charkop, Kandivali West, Mumbai 400 067;

b. To pass an Order directing the Applicant to make payment of the Stamp Duty and Registration Charges with the concerned Sub-Registrar of Assurances and/or other concerned Government Authority for the said property i.e Flat no. 404, ILA Apartments, Section 4, RDP 7, Charkop, Kandivali West, Mumbai – 400 067, after receiving fresh certificate of sale from the office of Hon’ble Prothonotary and Senior Master, High Court, Bombay.

c. To pass an Order directing the Sheriff of Mumbai to handover the possession of the said property i.e. Flat no.404, ILA Apartments, Section 4, RDP 7, Charkop, Kandivali West, Mumbai – 400 067, to the Applicant Vasant N. Shenoy, on receipt of the copies of the payment of Stamp Duty and Registration Charges;

d. To pass an Order directing the Hon’ble Chairman/Secretary of the ILA Apartments, Section 4, RDP 7, Charkop, Kandivali West, Mumbai – 400 067, to admit the Applicant Vasant N. Shenoy as a member of their society on payment of necessary charges and issue share Certificate in respect of said property i.e. i.e. Flat no. 404, ILA Apartments, Section 4, RDP 7, Charkop, Kandivali West, Mumbai – 400 067, in favour of the Applicant Vansant N. Shenoy;

e. To pass an Order directing the concern authority of Electricity Board to transfer the electricity meter in favour of the Applicant Vasanat N. Shenoy, in respect of said property i.e. Flat no.404, ILA Apartments, Section 4, RDP 7, Charkop, Kandivali West, Mumbai – 400 067.

f. Any other direction and/or order that this Hon’ble Court deems fit and necessary.”

3. Mr. Animesh Gupta, learned Counsel for the Applicant submits that the Applicant has purchased the property in question i.e. Flat No.404, ILA Apartment, Section 4, RDP 7, Charkop, Kandivali (W), Mumbai 400 067 in a Court Auction and accordingly, certificate of sale dated 15th April, 2023 has been issued in favour of the Applicant. He submits that however, possession of the subject premises has not been handed over to the Applicant, as the Applicant is not able to comply with Order dated 13th March 2023 passed by a learned Single Judge in Sherrif’s Report No.10 of 2023 in Commercial Execution Application No.125 of 2017.

4. Before consideration of the prayers sought in the Interim Application No.4050 of 2025, it is necessary to set out the reliefs granted by Order dated 13th March 2023 passed in Sherrif’s Report No.10 of 2023 in Commercial Execution Application No.125 of 2017, wherein prayer clauses (a) to (g) of the Sheriff’s Report have been granted. The said prayers clauses of Sheriff’s Report are reproduced herein below for ready reference:

“a) The Hon’ble Court may confirm the auction sale of the suit property i.e. right, title and interest of the Defendant abovenamed in his ownership immovable property situated at Flat No.404, LLA Apartments, Section 4, R.D.P. 7, Charkop, Kandivali, Mumbai - 400 067 for an amount of Rs.93,00,000/- (Rupees Ninety Three Lakhs only) in favour of Mr. V.N. Shenoy, the Auction Purchaser;

b) the Hon’ble Court may direct the Hon’ble Prothonotary

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