Section 115 of the Presidency Towns Insolvency Act exempts all transfers, mortgages, or assignments of insolvent's property wherever situate from stamp duty or other duty whatsoever.

ORDER :- Messrs Della Technical Service represented by its partners were adjudicated insolvents on its own petition by the order of this Court dated 8-7-1977. Consequent on the vesting of the property in the Official Assignee, the factory building and land belonging to the insolvent and situate at Kumberahalli, Kasba Hubli, Kolar taluk, bearing S.N. 33/1, measuring about 2 acres and 11 guntas were sold in public auction by the Official Assignee. The 2nd respondent herein, M/s. Usha Telehoist Ltd., was the highest bidder in a sum of Rupees 1,70,000/-. Hence, the sale was confirmed in favour of the 2nd respondent. Accordingly, the Official Assignee executed a sale deed in favour of the 2nd respondent. The 2nd respondent presented the sale deed for registration before the Sub-Registrar, Kolar in Karnataka State. The Sub-Registrar, Kolar, refused to register the same on the ground that no stamp duty had been paid on the sale deed. The Sub-Registrar, Kolar, took the view that the registration of the sale deeds of properties situate within the Karnataka State was governed by the provisions of the Karnataka Stamp Act, and inasmuch as the Karnataka Stamp Act does not contain any provision for exemption of stamp duty in cases of sales by the Official Assignee the document was liable to be stamped. In the circumstances, the Official Assignee has sought for the issue of necessary direction being issued to the Inspector General of Registration, Bangalore, to effect the registration of the sale deed executed by the Official Assignee in favour of the 2nd respondent.

2. The Inspector-General of Registration, Bangalore, the 1st respondent herein, has filed a counter-affidavit. He has contended that the Presidency Towns Insolvency Act is not applicable to any area other than Presidency Towns and therefore is not applicable to the State of Karnataka. The transaction is governed by the provisions of the Karnataka Stamp Act, 1967. The said Act does not provide for any exemption being granted in favour of the sale deed executed by the Official Assignee.

3. The short question that arises for consideration is whether the sale deed executed by the Official Assignee in favour of the 2nd respondent of the factory buildings and land situate in Kolar within the Karnataka State is liable to be exempted from stamp duty or not. I have heard the arguments of the learned Advocate-General of Madras to whom notice was issued by this Court, Mr. N.R. Chandran on behalf of the Inspector-General of Registration, Bangalore, Mr. Dandapani for the 2nd respondent and the Official Assignee.

4. Section 115 of the Presidency Towns Insolvency Act provides as follows :

''Every transfer, mortgage, assignment, power of attorney, proxy paper, certificate, affidavit, bond or other proceedings, instrument of writing whatsoever before or under any order of the court and any copy thereof, shall be exempt from payment of any stamp or other duty whatsover."-

5. It is therefore clear on the language of S.115 of the Presidency Towns Insolvency Act that in the case of a transfer of a property that is vested with the Official Assignee, no stamp duty need be paid as per the provisions of the Stamp Act. But the contention advanced on behalf of the Inspector-General of Registration, Bangalore, is that the Presidency Towns Insolvency Act is not applicable to the State of Karnataka. There is nothing in the Act to say that the provisions of the Act do not extend to areas situate outside the Presidency towns. Therefore, when S.115 speaks of a transfer by the Official Assignee, under orders of this Court, it can only mean transfer of the property of the insolvent which had vested with the Official Assignee. Therefore, on the face of it, S.115 takes within its ambit the transfer of properties of the insolvent wherever situate and which has become vested with the Official Assignee consequent on the order of adjudication. In this view, the transfer effected by the Official Assignee of a proper