The court held that sale certificates can be incorporated in the registry without mandatory payment of stamp duty, under certain conditions.

JUDGMENT

The learned Government Pleader takes notice for respondents 1 to 3.

2. This writ petition has been filed by the petitioner under Article

226 of the Constitution of India seeking the following reliefs:-

1. Issue an appropriate writ, order or direction to permit the petitioner to file Exhibit P1 sale certificate in the appropriate record books before the Sub-

Registrar, Ayyanthole without levying stamp duty upon the same.

2. Pass such other writ, order or direction that this Hon’ble Court may deem, fit proper in the facts and circumstances of the above case

3. The petitioners are auction purchasers of a property having an extent of 5.14 Ares, together with a commercial building bearing Nos. 38/2534, 38/2535, 38/2536, 38/2537 and 38/2538, situated in Survey No.709/1 of Aranattukkara Village, Thrissur Taluk. The petitioners participated in the auction proceedings and were declared the successful bidders for a total consideration of Rs.3,66,00,000/-. The petitioners remitted the entire sale consideration in accordance with the provisions of the Security Interest (Enforcement) Rules, 2002 .

4. Pursuant to the auction and confirmation of sale, the petitioners approached the secured creditor for issuance of a Sale Certificate under Rule 9(6) of the Security Interest (Enforcement) Rules, 2002 . Accordingly, a Sale Certificate dated 12.12.2025 was issued in favour of the petitioners by the authorised officer. Physical possession of the property was also handed over to the petitioners on 12.12.2025, pursuant to the issuance of the Sale Certificate. For the purpose of recording the transaction and reflecting the encumbrance, and notwithstanding the contention that registration of the Sale Certificate is not mandatory, the petitioners approached the Sub Registrar Office seeking registration of the Sale Certificate.However, the Sub Registrar declined to act upon the request and insisted on payment of stamp duty for the purpose of registration of the Sale Certificate. Aggrieved by the refusal of the Sub Registrar to register the Sale Certificate without payment of stamp duty, the petitioners have approached this Court.

5. The question of stamp duty in a sale certificate has already been referred to a Full Bench of this Court by order dated 25.08.2025 in W.A.Nos.1520 and 1823 of 2025 and it was ordered that, in the meanwhile, the sale certificates forwarded by the Bank under Section 89(4) of the Act shall be incorporated in Book No.1 either by collecting stamp duty under protest from such auction purchaser or making it as a charge over the property without collecting stamp duty. The option is left to the individual auction purchaser.

Taking note of these facts, the writ petition is disposed of with a direction to the 3rd respondent Sub Registrar to incorporate sale certificates, in Book No.1 on the basis of the direction in the reference order, subject to the orders by the Full Bench of this Court.

Sd/-