Point of Law: Mandate of law in terms of Section 17(2)(xii) read with Section 89(4) of Registration Act, 1908 only required authorised officer of bank under SARFAESI Act to hand over duly validated sale certificate to auction purchaser with a copy forwarded to registering authorities to be filed in Book I as per Section 89 of Registration Act.

JUDGMENT :

DEVAN RAMACHANDRAN, J.

1. The petitioner, who claims to be the Auction Purchaser of an extent of property covered by Ext.P1 Sale Certificate, in an auction conducted by the 4th respondent-Authorized Officer of the Indian Bank, has approached this Court seeking a direction to the 2nd respondent/Sub-Registrar, to enter the details of the said Sale Certificate in Book No. 1, maintained under the provisions of the Registration Act, 1908.

2. The petitioner says that, though Ext.P1 Sale Certificate was validly issued by the 4th respondent, the same had not been forwarded by him to the Sub-Registrar at the relevant time, thus constraining him to approach the 2nd respondent; but alleges that the said Authority is refusing to enter it in Book No. 1, saying that the time frame for such purpose has elapsed. The petitioner, therefore, prays that the 2nd respondent be directed to enter the details of Ext.P1 Sale Certificate in Book No. 1, within a time frame to be fixed by this Court.

3. Shri S. Easwaran, learned Standing Counsel appearing for the 4th respondent- Authorized Officer of the Indian Bank, controverted the afore submissions of Shri Jamsheed Hafiz, learned counsel for the petitioner, saying that at the time when Ext.P1 Sale Certificate was issued, the law, as is stood then, mandated the auction purchaser to have approached the Sub-Registrar with the requisite stamp paper, for its registration and consequential entry in Book No. 1. He submitted that the petitioner, however, does not appear to have done so and therefore, that his remedy now will be to now approach the Bank again and get the Sale Certificate revalidated, so he can then present it before the 2nd respondent for necessary action.

4. Smt. K. Amminikutty, learned Senior Government Pleader, submitted that a Statement has been filed by the 2nd respondent, wherein, it has been averred that, as per Section 17 of the Registration Act, the Sale Certificate ought to have been presented with proper stamp duty, within the time frame fixed by the said Act. She argued that, therefore, Ext.P1 Sale Certificate cannot be registered, unless it is submitted fulfilling these conditions.

5. When I evaluate the afore submissions, two questions arise, namely, whether the Sale Certificate will require to be revalidated by the Bank and whether the provisions of Section 17 of the Registration Act would apply.

6. As regards revalidation of the Sale Certificate is concerned, it is without contest that it will require to be so done. However, as far as the question of registration of the said Certificate is concerned, the issue is not res nova, it having been answered affirmatively in Esjaypee Impex Private Limited vs. Assistant General Manager and Authorized Officer Canara Bank, 2021 (2) CTC 493.

7. The Hon'ble Supreme Court has answered this aspect in the penultimate paragraph of the above judgment as under:

“We are of the view that the mandate of law in terms of Section 17(2)(xii) read with Section 89(4) of the Registration Act, 1908 only required the authorised officer of the bank under the SARFAESI Act to hand over duly validated sale certificate to the auction purchaser with a copy forwarded to the registering authorities to be filed in Book I as per Section 89 of the Registration Act.”

8. It is, therefore, indubitable that it is upto the auction purchaser to decide whether he wants the sale certificate to be registered, or only its details to be entered in Book No. 1. If he exercises the option for the particulars of the sale certificate to be entered in Book No. 1, as per the provisions of the Registration Act, then obviously, he will have to hand over the validated sale certificate to the jurisdictional Registering Authority, who can then enter it in the said Book, following due procedure.

9. Resultantly, I allow this writ petition and permit the petitioner to approach the 4th respondent-Bank, who shall revalidate Ext.P1 Sale Certificate as per law without any delay. The petitioner will,