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2021 Supreme(MP) 434

IN THE HIGH COURT OF MADHYA PRADESH
Mohammad Rafiq, C.J. and Sanjay Dwivedi, J.
State of M.P. & another v. M/s. Supratech Hospital
Pvt. Ltd. & another
Writ Appeal No. 75 of 2021 (Jabalpur): against the order
dated 7.11.2020 passed in W.P. No. 19632/2014;
Decided on 8.4.2021

Advocates:
Brahmadatt Singh, Government Advocate for appellants;
M.S. Bhatti for respondent No. 1;
Udit Maindiretta for respondent No.2.

Headnote:

¼1½ LVkEi vf/kfu;e] 1899 && èkkjk 49 rFkk 50 &&LVkEi 'kqYd rFkk jftLVªhdj.k Qhl ds izfrnk; dh gdnkjh && U;k;ky; ds vkns'k ls uhyke foØ; vikLr && foØ; izek.ki= okil fy;k && LVkEi [kjkc gks x, && Øsrk [kjkc gq, LVkEiksa ds LVkEi 'kqYd ,oa jkT; dks lank; dh xbZ jftLVªhdj.k Qhl ds izfrnk; dk gdnkjA ¼2015½ 16 ,llhlh 31 vuqlfjrA ¼2013½ 15 ,llhlh 732] ¼2014½ 5 ,llhlh 610] ¼2014½ 5 ,llhlh 651] ¼2014½ 5 ,llhlh 660 rFkk ¼2017½ 1 ,llhlh 203 foosfprA ¼iSjk 9 ls 11
¼2½ mPp U;k;ky; ¼[kaM U;k;ihB dks vihy½ vf/kfu;e] 2005 ¼e-iz-½ && èkkjk 2¼1½ && 'kfDr dh O;kfIr &&Uk;ky; ds vkns'k ls uhyke foØ; vikLr && [kjkc gq, LVkEiksa ds LVkai 'kqYd ,oa jftLVªhdj.k Qhl ds izfrnk; ds fy, vkosnu && [kkfjt && ,sls vkns'k ds fo#) fjV ;kfpdk && ¼2015½ 16 ,l lh lh 31 esa mPpre U;k;ky; ds fu.kZ; dk vuqlj.k djrs gq, ;kfpdk eatwj && LVkEi 'kqYd ,oa jftLVªhdj.k Qhl dk izfrnk; funsf'kr && fjV U;k;ky; }kjk dksbZ =qfV ugha dh xbZ && gLr{ksi visf{kr ugha && vihy [kkfjtA ¼2015½16 ,llhlh 31 vuqlfjrA ¼2013½ 15 ,llhlh 732] ¼2014½ 5 ,llhlh 610] ¼2014½ 5 ,llhlh 651] ¼2014½ 5 ,llhlh 660 rFkk ¼2017½ 1 ,llhlh 203 foosfprA ¼iSjk 10 ls 12

(1) Stamp Act, 1899 -- Ss. 49 and 50 -- entitlement to refund of stamp duty and registration fee -- auction sale set aside by order of Court -- sale certificate recalled -- stamps spoiled -- purchaser entitled to refund of stamp duty of spoiled stamps and registration fee paid to State. (2015)16 SCC 31 followed. (2013)15 SCC 732, (2014)5 SCC 610, (2014) SCC 651, (2014)5 SCC 660 and (2017)1 SCC 302 discussed. [Paras 9 to 11

(2) Uchcha Nyayalaya (Khand Nyayapeeth ko Appeal) Adhiniyam, 2005 (M.P.) -- S. 2(1) -- scope of powers -- auction sale set aside by order of Court -- application for refund of stamp duty of spoiled stamps and registration fee -- rejected -- writ petition against such order -- following decision of Supreme Court in (2015)16 SCC 31, petition allowed -- directed to refund stamp duty and registration fee -- no error committed by writ Court -- no interference called for -- appeal dismissed. (2015)16 SCC 31 followed. (2013)15 SCC 732, (2014)5 SCC 610, (2014)5 SCC 651, (2014)5 SCC 660 and (2017)1 SCC 203 discussed. [Paras 10 to 12

ORDER

1. Learned counsel for the appellants is heard on the question of admission. This appeal under section 2(1) of the Madhya Pradesh Uchcha Nyayalaya Khandpeeth Ko Appeal Adhiniyam 2005 has been filed questioning the correctness of the order passed by the writ Court on 7.11.2020 in WP No. 19632/2014 whereby the writ Court relying upon a judgment of Supreme Court reported in (2015) 16 SCC 31 (Committee GFIL v. Libra Buildtech Private Ltd. and others) allowed the petition in regard to refund of amount of stamp duty to the extent of relief claimed in the petition under Clause 7 (iii) and (iv).

2. The facts, leading to the present appeal in a nutshell are that the respondent No.1 (petitioner before the writ Court) filed a writ petition seeking a direction in the nature of mandamus commanding the appellant to refund the amount of stamp duty as well as registration charges because the said firm participated in the auction conducted by the respondent No.2 and purchased the property after paying the consideration amount of Rs. 1,20,00,000/- over which an amount of Rs. 16,69,600/- was paid as a stamp duty and registration charges and the sale certificate was executed and issued by the Bank.

3. The defaulter-borrower upon repayment of entire dues got the sale set aside in an appeal preferred under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 challenging the auction proceedings. The said appeal was registered as MA No. 85/2020. The Debt Recovery Tribunal finally set aside the auction proceedings as it found some irregularity therein and directed the Bank to recall the sale certificate already issued in the name of the petitioner.

4. The petitioner was not the party in the appeal and no request for refund of stamp duty and registration charges was made and, therefore, no order in that regard was passed by the Tribunal. The petitioner thereafter approached the Bank asking refund of the stamp duty and registration charges, but, despite assurance given by the Bank, no order was passed, though they made request to the Tribunal by issuing letter to pass an order in that regard so that the petitioner could be refunded back the amount of stamp duty and the registration charges.

5. A review petition i.e. RA No. 02/2011 was filed by the Bank before the Tribunal, but the said review petition was also disposed of by the Tribunal vide order dated 28.2.2012 reducing the rate of interest from 18 percent to 12 percent in favour of the auction purchaser, but, no order regarding refund of stamp duty was passed. Against the order passed in review petition, the petitioner preferred an appeal before the Debt Recovery Tribunal, Jabalpur, but, the said appeal was also dismissed vide order dated 4.10.2013.

6. The petitioner thereafter moved an application under section 49 of the Indian Stamp Act, 1899 (For short ‘Stamp Act’) before the District Registrar-cum-Collector (Stamp). But no order was passed on the said application. The petitioner then filed a writ petition, which was registered as WP No. 19632/2014, which was finally allowed vide order dated 7.11.2020, which is impugned in this appeal.

7. Learned counsel for the appellant has criticized the order passed by the writ Court mainly on the ground that under the circumstances existing in the present case, it is the respondent-Bank, which has committed the irregularity and illegalities in the auction and ultimately the said auction was set aside on the basis of the said irregularity and, therefore, it is the Bank, which can be held responsible and should pay the stamp duty and registration charges whatever incurred by the auction purchaser in the alleged sale.

8. Learned counsel for the appellants submits that there are cases of Supreme Court in which the erring party was held responsible and was directed to compensate the auction purchaser in case the sale is set aside. He has relied upon the decisions reported in (2013) 15 SCC 732-T.S.R. Subrama

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