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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
| Table of Content |
|---|
| 1. background of the property auction and legal proceedings. (Para 1 , 2 , 3 , 4) |
| 2. arguments of the appellant regarding stamp duty assessment. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11) |
| 3. respondent's defense referencing supreme court rulings. (Para 12 , 14 , 15) |
| 4. court's interpretation of applicable stamp duty laws. (Para 13 , 16 , 28) |
| 5. court’s analysis on applicable law regarding sale certificates. (Para 19 , 21 , 22) |
| 6. final ruling on how duties are to be levied based on sale certificate values. (Para 30) |
| 7. court's order and modification of the impugned judgment. (Para 36 , 37 , 38 , 39) |
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 comple
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.
Sale certificates issued by operation of law under SARFAESI do not fall under Section 47-A of the Indian Stamp Act for undervaluation, distinguishing them from conveyance instruments.
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 sale certificate from a public auction does not require registration under the Registration Act, and the value for stamp duty is based on the purchase price stated, not an assessed market value.
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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