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.

ORDER :

1. Heard both sides.

2.The properties that are the subject matter of this writ petition belonged to C.P Spinning Mills Pvt Ltd., The said company availed loan from the Catholic Syrian Bank Ltd by mortgaging the said properties. The company committed default and went into liquidation. The properties were brought to auction sale under the provisions of the SARFAESI Act, 2002 . The Authorised Officer invited bids vide public notification dated 30.12.2023. The writ petitioner's bid was highest. The Authorised Officer issued sale certificate in favour of the petitioner on 28.03.2024. It was presented to the registering authority for registration. The writ petitioner paid 7% towards stamp duty and 4% towards registration fees. Yet, the registering authority did not register the sale certificate but kept it as a pending document. The registering authority was of the view that the value of the property sold had to be determined. The petitioner was informed that the document has been kept pending for determination of the market value. Challenging the stand of the registering authority, this writ petition has been filed.

3.Even though the issue regarding filing and registration of sale certificates has been the subject matter of quite a few decisions of the Hon'ble Supreme Court as well as this Court, there still appears to be considerable doubt and confusion in the mind of the authorities. This can be illustrated from the simple fact that an impliedly overruled Full Bench decision of this Court reported in 2019 (4) CTC 839 ( Dr.R.Thiagarajan v. I.G of Registration ) continues to be relied upon by every law officer representing the registering authority. I, therefore, propose to shed some clarity on the issue even while disposing of this writ petition.

4.Any sale certificate granted to the purchaser of any property sold by public auction by a civil or revenue officer does not require registration (vide Section 17 (2)(xii) of the Registration Act). Since a sale certificate is not a compulsorily registrable document, transfer of title in favour of the certificate holder is not vitiated by its non-registration (vide Shanti Devi L.Singh v. Tax Recovery Officer (1990) 3 SCC 605).

5.InShanti Devi L.Singh, it was held that there is no need to read the term “a revenue officer” in any restricted sense. Section 89(4) of the Registration Act, 1908 mandates that every revenue officer granting a certificate of sale to the purchaser of immovable property sold by public auction shall send a copy of the certificate to the registering officer within the local limits of whose jurisdiction the whole or any part of the property comprised in the certificate is situate and such officer shall file the copy in his Book No.1 or get it scanned. This statutory mandate has been reiterated inEssjaypee Impex (P) Ltd v. Canara Bank (2021) 11 SCC 537. It was held that the authorised officer of the bank under SARFAESI Act was only required to hand over the duty validated sale certificate to the auction purchaser with a copy forwarded to the registering authorities to be filed in Book I.

6.Mere filing under Section 89(4) of the Registration Act itself is sufficient when a copy of the sale certificate is forwarded by the authorised officer to the registering authority ( The State of Punjab v. M/s.Ferrous Alloy Forgings P Ltd (2024 INSC 890). Since issuance of such certificate does not create or extinguish any title, it would not attract any stamp duty which is applicable qua an instrument of sale of