Court affirmed the rights of auction purchasers under SARFAESI Act, emphasizing discretion on stamp duty payment for registration of Sale Certificates.

JUDGMENT

(Dated this the 12th day of February, 2026)

The petitioner is an auction purchaser with respect to two items of properties for an extent of 8.90 Ares in Block No.11 in Re-Survey No.172/3-6-1-1 of Kanjirappally Village, Kanjirappally Taluk with residential building bearing No. KP vii/96A and another property having extent of 8.91 Ares in Block No.11 in Re-Survey No.172/3-6-1-2 of Kanjirappally Village, Kanjirappally Taluk with residential building bearing No. KP vii/96B therein. The Bank sold the mortgaged properties in auction under the SARFAESI Act in favour of the petitioner. The sale was confirmed and Exts-P1 and P2 Sale Certificates were issued in favour of the petitioner. When the petitioner approached the Registering Authority to enter the Sale Certificates in Book No. 1 in terms of Section 89 (4) of the Registration Act , the authority declined to do so on the ground that stamp duty had not been paid on the Sale Certificates. Aggrieved thereby, the petitioner has filed this writ petition seeking the following reliefs:

“i) Issue a Writ of Mandamus or other appropriate writ, order or direction, directing the 1st respondent to enter Exhibit.P1 and P.2 Sale Certificates issued by the 3rd respondent Bank under the SARFAESI Act in Book No.1 under section 89 of the Registration Act without insisting the Stamp Duty;

ii) Issue a Writ of Mandamus or other appropriate writ, order or direction directing the 2nd respondent to affect mutation in respect of the property covered by Exhibit.P1 and P2 Sale Certificates in favour of the petitioner and to accept the basic tax as per the Sale Certificate”.

2. This issue 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 certificate 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.

3. Therefore, there will be a direction to the 1^st respondent -

Sub Registrar to incorporate the 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. Regarding the prayer No.(ii), it is for the petitioner to move the authority concerned to effect mutation pursuant to the incorporation of the sale certificates in Book No.1, in accordance with law.

The writ petition is disposed of as above.

SD/-