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
| 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
Sale certificates from auction sales do not require registration under the Registration Act, confirming that title transfers upon sale confirmation.
The main legal principle established in the judgment is that a sale certificate issued by a Civil or Revenue Officer does not require compulsory registration and should be filed in Book No. 1 as per ....
Sale certificates issued by operation of law under SARFAESI do not fall under Section 47-A of the Indian Stamp Act for undervaluation, distinguishing them from conveyance instruments.
The sale certificate from a public auction does not require registration under the Registration Act, and the value for stamp duty is based on the purchase price stated, not an assessed market value.
Sale certificates issued under SARFAESI Act are not compulsorily registrable and do not require stamp duty when filed under Section 89(4) of the Registration Act.
Auction sale confirmed pre-CIRP becomes absolute under Income-tax Act Second Schedule Rule 63; title passes on confirmation, not sale certificate issuance; moratorium under IBC Section 14 does not af....
Stamp duty for Sale Certificates must be calculated based on the purchase price stated in the certificate, not the market value, with total permissible duties capped at specified rates.
Sale certificates issued under SARFAESI Act are not compulsorily registrable and do not require stamp duty when filed under Section 89(4) of the Registration Act.
Sale certificates issued by banks are not compulsorily registrable and filing them in Book No.1 does not attract stamp duty.
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