Sale certificates from public auctions under SARFAESI Act are exempt from guideline valuation; only auction price applies for registration.

ORDER

The present Writ Petition has been filed for the issuance of a Writ of Certiorarified Mandamus to quash the impugned refusal check slip in Refusal Number. RFL/Theni/10/2025 dated 12.06.2025 and consequently, to direct the respondent to register and release the sale certificate presented by the petitioner within the period that may be stipulated by this Court.

2.1 The brief facts as stated in the affidavit are that the City Union Bank Ltd., Theni (herein after referred to as 'Bank') had extended loan against the property by getting memorandum of deposit of title deeds for the property situated in S.No.213 (part) of Allinagaram Revenue Village, Theni Sub Registration, Periyakulam Registration District, Theni District. The persons who borrowed the loan was not able to repay the loan, the bank had initiated proceedings under Section 13 of The Security and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2022 (herein after referred to as SARFAESI Act). The property was brought for sale through public auction through paper publication dated 23.12. 2024 , the petitioner had participated in the said auction sale, the petitioner was declared as highest bidder for Rs. 61,00,200/- and the same was confirmed. The petitioner had remitted the said amount on various dates from 22.04.2025 to 25.04.2025. On the date of final payment was made by the petitioner, the bank had issued the sale confirmation letter on 25.04.2025.

2.2. The petitioner had presented the sale certificate dated 06.06.2025 for registration and the respondent had issued the impugned refusal check slip dated 12.06.2025 wherein it is stated that the present guideline value of the subject mentioned property is Rs.3,82,80,000/- and directed the petitioner to pay the stamp fees and registration fees as per the guideline value of Rs. 3,82,80,000/-. The petitioner submitted that the impugned order had been passed by the respondent without any application of mind, since the guideline value cannot be pressed into service in the cases for sale in public auction. The Bank had conducted a public auction in accordance with the provisions of the SARFAESI Act and as such the same will fall within the ambit of Article 18 of the Stamp Act . Hence the impugned refusal check slip cannot be sustained in the eye of law. Hence, the present writ petition is filed.

3. The Learned Counsel appearing for the respondents on written instructions submitted that the petitioner had purchased the land and building through public auction conducted by the Bank. The public auction sale certificate issued by Civil Courts, Revenue Authorities and Authorities controlled by Revenue and District Collectors alone would come under Section 18 . Since the public auction sale certificate is issued by the Bank, the same would not come within the purview of Section 18 . Further the petitioner is liable to pay the stamp duty and registration fees for the guideline value of the property, but the petitioner had paid only for Rs.1000/-. The petitioner had stated that he is liable to pay for the value of Rs.61,00,200/- only as stated in the document, but the value of the property is Rs.3,82,80,000/- and the petitioner is liable to pay stamp duty and registration fees for the same. Hence for these reasons the document was refused to be registered.

4. After hearing the rival submissions, this Court has given its anxious consideration. The primary contention of the petitioner is that the sale certificate issued by the Authorized Officer would be a sale certificate issued by a Revenue Officer and the same is not compulsorily registered under section 17(2) (xii) of the Registration Act . It is seen that the