No stamp duty is payable on copies of sale certificates submitted for registration under Section 89(4) of the Registration Act, as established by precedent.

ORDER :

Prayer: Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Mandamus directing the Respondents 1 and 2 to enter the Sale Certificate dated 24.01.2024 in Book No. 1 under Section 89(4) of the Registration Act, 1908, issued by the 3rd Respondent under Rule 9(6) of the SARFAESI Rules, 2002, without insisting the stamp duty.

1. The petitioner herein seeks a direction to the Respondents 1 and 2 to enter the sale certificate dated 24.01.2024 in Book No. 1 under Section 89(4) of the Registration Act, 1908, without insisting payment of stamp duty.

2. It is the case of the petitioner that she was the highest bidder of the property covered by the sale certificate dated 24.01.2024 in the e-auction conducted by the 3rd Respondent under the SARFAESI Act. After deposit of the entire sale consideration as per the bid, the 3rd Respondent issued sale certificate dated 24.01.2024. After handing over the original sale certificate to the petitioner, the 3rd Respondent forwarded a copy of the sale certificate to the 2nd Respondent on 04.03.2024 for making necessary entry in Book No. 1 under Section 89(4) of the Registration Act. The 2nd Respondent kept the document pending without making necessary entry on the ground that it is liable for stamp duty. Therefore, the petitioner has come before this Court.

3. The learned counsel for the petitioner by relying on the following judgments submits that the sale certificate forwarded to the 2nd Respondent for making entry under Section 89(4) of the Registration Act, 1908, is not liable for stamp duty:

(i) Sub-Registrar Joint-1, Ootacamund, The Nilgiris vs. Navaratan Bothra in W.A. No. 1058 of 2024.

(ii) Devendra Bhandari and Others vs. The Inspector General of Registration and Others in W.P. No. 22896 of 2024.

4. The learned Additional Government Pleader appearing for the Respondents submits that the sale certificate is liable to be affixed with stamp duty under Article 18 read with Article 23 of the Indian Stamp Act, 1899. He further submitted that as per G.O.Ms. No. 28, Commercial cum Registration (J2) Department dated 23.03.2023, the petitioner is liable to pay filing charges at the rate of 11%.

5. The learned Additional Government Pleader appearing for the Respondents raised an oral submission that what was forwarded to the 2nd Respondent by the 3rd Respondent is the original sale certificate and therefore it is liable to be impounded for collection of stamp duty. He further orally submitted that the said certificate was impounded. However in the counter affidavit filed by the 2nd Respondent, he has not taken a plea as if document was impounded.

6. The learned counsel for the petitioner disputed the oral argument made by the learned Additional Government Pleader by submitting that the original sale certificate was handed over to the petitioner by the 3rd Respondent and what was forwarded to the 2nd Respondent is only a copy of the sale certificate.

7. The petitioner also produced the original sale certificate issued to him by the 3rd Respondent before this Court to substantiate his claim that the original sale certificate was handed over to him by the 3rd Respondent.

8. A perusal of the covering letter dated 04.03.2024 of the 3rd Respondent addressed to the 2nd Respondent enclosed in the typed set of papers would show that he forwarded only a copy of the sale certificate for filing under Section 89(4) of the Registration Act. When the covering letter issued by the 3rd Respondent indicates that only a copy of the sale certificate was forwarded to the 2nd Respondent, it is not open to the registration authority to assume that it was the original certificate and insist payment of stamp duty. In fact, the original sale certificate has been produced by the petitioner before this Court for perusal. Hence, it is not open to the 2nd Respondent to insist payment of stamp duty on the copy of the sale certificate forwarded to him for filing under Section 89(4) of the Regist