Sale certificates issued by operation of law under SARFAESI do not fall under Section 47-A of the Indian Stamp Act for undervaluation, distinguishing them from conveyance instruments.

JUDGMENT :

N. SATHISH KUMAR, J.

1. Since the issue involved in all the Writ Appeals is one and the same, we are inclined to dispose of the same by a common judgment.

2. The present writ appeals have been filed by the appellants challenging the orders of the learned Single Judges, whereby the orders of the Registering Authority referring the sale certificate under Section 47-A of the Indian Stamp Act on the ground of undervaluation of the properties were quashed.

3. The Writ Petitioners purchased the properties through public auctions conducted by the authorities. When the sale certificates were presented for registration, registration was refused, and the matter was referred under Section 47-A of the Indian Stamp Act, 1899, on the ground of undervaluation of the properties. Challenging the said orders, the Writ Petitioners filed the above Writ Petitions.

4. The learned Single Judges, after considering various judgments of this Court as well as the Hon’ble Supreme Court, allowed the Writ Petitions and quashed the orders of the Registering Authorities. Aggrieved by the orders of the learned Single Judges, the present Writ Appeals have been filed.

5. The learned Advocate General and the learned Additional Advocate General appearing for the appellants submitted that Schedule I, Article 18 of the Indian Stamp Act, 1899, applies only to a certificate of sale granted to the purchaser of any property sold by public auction by a Civil or Revenue Court or other Revenue Officer. Only in such cases stamp duty is payable as on a conveyance, calculated on the market value equal to the amount of the purchase money. They further contended that sale certificates issued under proceedings under the SARFAESI Act, the IBC, or pursuant to any public auction conducted by a Court-appointed Receiver, would not fall within the ambit of Schedule I, Article 18 of the, and therefore, registration of the sale document is mandatory. Registering Authorities have the power to refer the matter to Collector under Section 47A of the.

6. It is also submitted that Section 2 (14) of the Indian Stamp Act, 1899, was amended by Act 7 of 2019 with effect from 09.01.2020. According to them, instrument includes every document, by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded. Therefore, the said definition makes it clear that any sale certificate creating any right or liability falls within the ambit of an instrument. Hence, he would submit that under Section 47-A of the, the Registering authority, while registering any instrument has reason to believe that market value of the property has not been truly set forth in the instrument, he may, after registering such instrument, refer the same to the Collector for determination of the market value of such property. Therefore, the said definition makes it clear that any sale certificate creating any right or liability falls within the ambit of an instrument. Hence, it is their contention that, in all public auctions, the value has been purposely reduced. Therefore, in such cases, the Registering Authority has every right to refer the instrument to determine the true market value of the property.

7. Further, it is their contention that a Full Bench of this Court in R. Thiagarajan Vs. Inspector General of Registration,  2019 (4) CTC 839 has held that the sale certificate issued by the Authorised Officer o