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2023 Supreme(Mad) 2407

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, J.
Ramesh Kumar Gupta & Others – Appellants
Versus
Inspector General of Registration, Office of the Inspector General of Registration, Chennai & Another – Respondents
W.P. No. 19921 of 2023 & W.M.P. No. 19277 of 2023
Decided On : 07-07-2023

Advocates appeared:
For the Petitioner:K.F. Manavalan, Advocate. For the Respondent: D. Ravichander, Special Government Pleader.

The optional nature of registration under Section 17 of the Registration Act and the authority of the registering authority to collect registration and other charges when documents are presented under Section 17.

Headnote:

Mandamus - Registration of Sales Certificate - Section 17, Section 89(4) of the Registration Act - [Section 17, Section 89(4)] - The court discussed the distinction between Section 17(1) and Section 17(2) of the Registration Act, emphasizing that documents falling under Section 17(2) do not convey any right to the parties. The judgment also highlighted the purpose and object of registration under the Registration Act, emphasizing the optional nature of registration under Section 17 and the authority of the registering authority to collect registration and other charges when documents are presented under Section 17. The court concluded that the petitioners, having opted to register the Sales Certificate under Section 17 and paid the registration charges, cannot seek a refund after completion of the registration process.

Fact of the Case:

The petitioners sought a refund of the registration charges collected for the registration of a Sales Certificate, contending that the Sales Certificate need not be registered compulsorily.

Finding of the Court:

The court dismissed the writ petition, stating that the petitioners, having opted to register the Sales Certificate under Section 17 and paid the registration charges, cannot seek a refund after completion of the registration process.

Issues: Whether the Sales Certificate need not be registered compulsorily and if the petitioners are entitled to a refund of the registration charges.

Ratio Decidendi: The optional nature of registration under Section 17 of the Registration Act and the authority of the registering authority to collect registration and other charges when documents are presented under Section 17.

Final Decision: The writ petition stands dismissed, and the connected miscellaneous petition is closed. No costs are awarded to the petitioners.

JUDGMENT

(Prayer: WritPetition is filed under Article 226 of the Constitution of India, to issue Writ of Mandamus, directing the Respondents, more particularly 2ndrespondent, to refund Rs.10,21,790/-, collected from the petitioners for registration of the ''Sale Certificate'', registered as Doc No.343 of 2022 in Book-1 on the file of the SRO, Periampet.)

1. The Writ of Mandamus has been instituted to direct the second respondent to refund a sum of Rs.10,21,790 collected from the petitioners for the registration of Sales Certificate registered as Document No.343 in Block No.1 on the file of the SRO, Periamet.

2. The petitioners purchased the subject property through public action conducted by DRT and a Sales Certificate has been issued by the authorized officer. The petitioner presented the Sale Deed certificate for registration under Section 17 of the Registration Act. The Sub-Registrar registered the document and released the same, after following the procedures and on payment of registration and other charges.

3. After completion of the registration and release of the document registered, the petitioners have chosen to raise an objection by stating that the Sale Certificate need not be registered compulsorily and therefore, the Sub-Registrar ought to have registered under Section 89(4) of the Act without collecting the registration charges.

4. The learned counsel for the petitioners reiterated that the collection of registration charges are in violation of the provisions of the Act. Mere entry on record would be sufficient as far as the Sales Certificate is concerned and thus, the petitioner is entitled to get refund of the charges that had already been paid for registration. The petitioner has given representation seeking refund, which was not considered and thus the petitioners have filed the present writ petition.

5. The learned counsel for the petitioners mainly contended that under Section 89(4) of the Act, procedures are contemplated to make entry of Sales Certificate to be followed and in the present case, the Sub-Registrar has registered the document by collecting registration charges, which is improper.

6. It is contended that there is no transfer of any right made pursuant to the Sale Certificate granted in favour of the petitioners. Therefore, the registration became unnecessary and thus, the petitioners are entitled to seek refund.

7. The learned Special Government Pleader appearing for the respondents raised an objection by stating that under Section 17(1) of the registration Act, for documents presented by the writ petitioner, Sales Certificate is not compulsorily registrable. It is an option of the person to present the document for registration under Section 17 of the Act. Section 17(2) contemplates certain documents which is not compulsorily registrable also can be registered. Section 17(2)(xii) denotes that “any certificate of sale granted to the purchaser of any property sold by public auction by a Civil or Revenue-Officer”. Therefore, if the Sales Certificate has been issued by a civil or revenue officer, such Sales Certificate can be registered under Section 17 of the Act also.

8. The distinction between Section 17(1) and Section 17(2) are to be borne in mind. Conveyance of right becomes mandatory, if the document is registered under Section 17(1) of the Act. However, no such conveyance of right is required in respect of all the documents following under Section 17(2) of the Act.

9. Section 17(2)(v) stipulates that “[any document other than the documents specified in sub-section (1A)] not itself creating, declaring, assigning, limiting or extinguishing any right, title or interest of the value of one hundred rupees and upwards to or in immovable property, but merely creating a right to obtain another document which will, when executed, create, declare, assign, limit or extinguish any such right, title or interest.”

10. Therefore, the above provision unambiguously clarifies that the documents to be registered under

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