The Sale Certificate issued by a bank under specific statutes does not require stamp duty or registration, as per Section 89(4) of the Registration Act, 1908.

JUDGMENT

(Dated this the 9^th day of January, 2026)

The writ petition is filed with the following prayers;

“(i) declare that Exhibit P-1 Sale Certificate issued by the petitioner as the Authorized Officer of the bank is liable to be filed in Book No. 1 as contemplated in Section 89 (4) of the Registration Act, 1908 without paying any stamp duty.

(ii) issue a writ of mandamus or any other appropriate writ, order or direction directing the Respondent to file Exhibit P-1 Sale Certificate issued by the petitioner as per the provisions of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 in Book No. 1 as contemplated in Section 89 (4) of the Registration Act, 1908 without insisting for the payment of stamp duty.

(iii) declare that Exhibit P-1 Sale Certificate issued by the petitioner as the Authorized Officer of the bank is not a compulsorily registerable document and no stamp duty is liable to be collected for filing it in Book No. 1 as contemplated in Section 89 (4) of the Registration Act, 1908 .

(iv) petitioner may be permitted to dispense with the filing of translation of the vernacular documents.

(v) pass such other or further writ, order or direction which this Hon’ble Court deems fit and proper to pass in the facts and circumstances of this case.”.

2. The Petitioner is the Chief Manager and Authorized Officer of the South Indian Bank Ltd., Kannur Regional Office. An extent of 4.73 Cents of property comprised in Re-Sy. No. 63/1, 62 of Kannur-1 Village owned by Mr. Basheer K.B. and Mrs. Ramlath M.K. was mortgaged with the Kannur main branch of the South Indian Bank Ltd. while availing business loan by M/s Sabith Trading Corporation. Due to the default committed by the borrowers in the repayment of the loan amount, the bank had initiated recovery proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 and ultimately, the property was sold in public auction in favour of one Mr. K.V. Rafeeque. Hence, the bank issued sale certificate in favour of Mr. K.V. Rafeeque.

3. On receipt of Exhibit P1 Sale Certificate, the respondent returned the same as per Ext.P3 letter dated 27-10- 2025 stating that the Inspector General, Registration had directed that the Sale Certificate need to be registered only after the payment of the requisite stamp duty.

4. It is submitted that the Sale Certificate issued by the petitioner cannot be treated as conveyance liable to pay stamp duty and it is not an instrument which is to be compulsorily registered. As per Section 89 (4) of the Registration Act, the copy of the Sale Certificate is liable to be filed in Book No. 1 maintained by the Sub registrar, within whose jurisdiction the property is situated. In terms of 17(2) (xii) r/w (4) of the Registration Act, 1908 the recovery officer/authorised officer for the Banks is only required to hand over the duly validated sale certificate to the auction purchaser with a copy forwarded to the registering Authority for filing in Book No. 1. Once a copy of the sale certificate is received by the concerned Sub Registrar, he is obliged to file it in Book No. 1 as mandated by of the Act. This process itself has the effect of registration and obviates the need for any further action. The said procedure does not contemplate the process of registration by remitting any stamp duty. Aggrieved by the refusal to register the sale certificate, the petitioner approached this Court.

5. Regarding the question of payment of stamp duty in a sale certificate, it is now referred to a larger bench which is still pending vide the reference order W.A.No.1520 & 1823/2025 dated 25.08.2025. Hence, it was ordered that in the meanwhile In the meanwhile, any sale certificate