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IN THE HIGH COURT OF JUDICATURE AT MADRAS
R.SURESH KUMAR, K.KUMARESH BABU
Inspector General of Registration, No.100, Santhome High Road, Chennai – Appellant
Versus
Sulochana Cotton Spinning Mills (P) Ltd. – Respondent
JUDGMENT :
R. SURESH KUMAR, J.
1. This intra-Court appeal has arisen out of the order passed by the Writ Court, dated 08.08.2017 made in W.P.No.14315 of 2017.
2. The short facts, which are required to be noticed for the disposal of this appeal, reads thus:-
The respondent/writ petitioner purchased an immovable property to an extent of 9.49½ Acres comprised in various Survey Numbers of Veerapandi Village, Tiruppur South, Tiruppur District, in a public auction conducted by the State Bank of India under the SARFAESI proceedings, for a total Sale Consideration of Rs.18,36,00,000/-.
3. On completion of the said sale, by way of auction purchase, the Recovery Officer of the Bank had issued the Sale Certificate dated 16.09.2016 to the respondent. The respondent had presented the Sale Certificate for registration before the 4th appellant on 15.12.2016. Initially, the Sale Certificate was kept as a pending document in Doc.No.P.18/2016. Thereafter, it was registered as Doc.No.5392/2016 on 27.12.2016 by the 4th appellant. Even though it was registered, the document has not been released to the respondent and the 4th appellant has also passed an order dated 06.04.2017, where, the 4th appellant consi
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 under SARFAESI Act are not compulsorily registrable and do not require stamp duty when filed under Section 89(4) of the Registration Act.
Stamp duty must be based on the value in the Sale Certificate issued by a Government Undertaking, not on an independently assessed market value by Stamping Authorities.
The liability to pay stamp duty on auction sale certificates is not exempted by procedural errors; legal provisions must be adhered to strictly.
The judgment established that the sale conducted by the AO under the SARFAESI Act is equivalent to a sale in the open market and exempt from scrutiny under Section 47A of the 1899 Act.
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.
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