The court clarifies the applicability of stamp duty on sale certificates issued under the SARFAESI Act based on statutory interpretations.

JUDGMENT

The learned Government Pleader takes notice for respondents 1 and 2. The learned Standing Counsel takes notice for the 3rd respondent.

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

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

1. Declare that Exhibit.P1 Sale Certificate issued by the Authorised Officer of the 3rd respondent Bank in favour of the petitioners is liable to be filed/entered in Book No.I as contemplated under Section 89 (4) of the Registration Act 1908 without any stamp duty.

2. Issue a Writ of Mandamus or other appropriate writ, order or direction, directing the 1st respondent to file/enter Exhibit.P1 Sale Certificate issued by the Authorized Officer of the 3rd respondent Bank under the SARFAESI proceedings in Book No.1 under section 89(4) of the Registration Act without insisting the Stamp Duty.

3. Issue a Writ of Mandamus or other appropriate writ, order or direction directing the 2nd respondent to effect mutation in respect of the property covered by Exhibit.P1 Sale Certificate in favour of the petitioners and to accept the basic tax after the Sale Certificate is entered in Book No.1 under section 89(4) of the Registration Act .

4. Issue any other writ or direction as this Hon’ble Court may deem fit in the facts and circumstances of the case.

5. Petitioners also pray that this Hon’ble Court may be pleased to dispense with the translation of the documents produced in the vernacular language.

3. The petitioners purchased 2.43 Ares of land comprised in Block No.1, Re-Sy No.1753/2-1-2-2 of Tholikkodu Village, Nedumangad Taluk, Thiruvananthapuram District, in a public auction conducted by the Authorised Officer of the 3rd respondent Bank under the provisions of the SARFAESI Act . Originally, the said property was offered as security for a loan availed by the borrowers from the 3rd respondent Bank. Upon default committed in repayment of the loan, the 3rd respondent Bank initiated proceedings under the SARFAESI Act . In the auction so conducted, the petitioners emerged as the highest bidders, and the property was sold in their favour for a consideration of Rs.25,06,300/- (Rupees Twenty-Five Lakh Six Thousand Three Hundred Only). The sale was thereafter confirmed in favour of the petitioners.

4. Pursuant thereto, the 3rd respondent Bank handed over possession of the property to the petitioners and issued a Sale Certificate dated 22.12.2025 in their favour. According to the petitioners, such a Sale Certificate is required only to be filed in Book No.1 maintained in the Sub Registrar Office having jurisdiction over the property, as contemplated under Section 89 (4) of the Registration Act , 1908.

5. Accordingly, the petitioners, the 3rd respondent Bank, attempted to have the Sale Certificate filed in Book No.1 maintained by the 1st respondent. The petitioners also submitted an application dated 15.01.2026 before the 1st respondent requesting filing of the Sale Certificate in Book No.1 in terms of Section 89 (4) of the Registration Act . However, the 1st respondent declined to accede to the said request on the ground that stamp duty as contemplated under Article 16 of the Kerala Stamp Act had not been paid on the Sale Certificate. Aggrieved by the refusal of the 1st respondent to file or enter the Sale Certificate in Book No.1, the petitioners have approached this Court.

6. 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 collect