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2026 Supreme(Online)(Mad) 37655
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Abdul Quddhoose, J
Ranvir R Shah – Appellant
Versus
Inspector General of Registration – Respondent
W.M.P.No.14751 of 2026
For the Appellants/Petitioners: Mr.AR.L.Sundaresan, Senior Counsel, for Mr.L.Palannimuthu
For the Respondents: Mr.U.Baranidharan, Special Government Pleader
Audit objection under Stamp Act invalid after court-ordered compliance and final appellate dismissal.
Headnote:Under Section 47A of the Indian Stamp Act, 1899, an audit objection claimed recovery of Rs.3,44,38,556/- for a release deed (Document No.4415/2021). Petitioner sought deletion of encumbrance entry and registration of power of attorney (Document No.P-122/2025). Court previously directed return of release deed post-registration in W.P.32407/2023, upheld by Division Bench in W.A.3513/2024. Court found audit objection arbitrary post-compliance. Issue: Validity of audit objection persisting after court's prior orders. Ratio: Non-application of mind to prior judicial directions renders demand illegal; release deed returned pursuant to court orders, precluding further recovery claims (paras 2-4). Writ petition allowed; respondents directed to delete encumbrance entry and complete registration within two weeks.
| Table of Content |
|---|
| 1. petition seeks deletion of encumbrance and gpa registration. (Para 1) |
| 2. prior court orders returned release deed, invalidating audit claim. (Para 2 , 3) |
| 3. audit objection arbitrary, violating final court orders. (Para 4 , 5) |
| 4. writ allowed with directions to delete entry and register gpa. (Para 6) |
ORDER
This Writ Petition is filed to direct the respondents to delete the entry in the Encumbrance Certificate relating to the Audit Objection 2021- 2022, Paragraph 1/11A as though a sum of Rs.3,44,38,556/- is to be recovered from the petitioner under Section 47A of the Indian Stamp Act, 1899 in respect of Document No.4415 of 2021 on the file of the Sub- Registrar, Thiruporur and complete registration and return the General Power of Attorney, dated 18.12.2025 in pending Document No.P-122 of
2025 on the file of the Sub-Registrar, Kelambakkam, executed by the petitioner in favour of M/s.Artha Real Estate Corporation Ltd., Chennai, within a time frame to be fixed by this Court.
2. The learned Senior Counsel for the petitioner would submit that by total non-application of mind to the fact that the release deed, which was the basis for the claim of Rs.3,44,38,556/-, having been released to the petitioner pursuant to the orders passed by this Court, the question of relying upon the Audit Objection once again and making a claim of Rs.3,44,38,556/- from the petitioner for the registration of the Power of Attorney presented by the petitioner, is arbitrary and illegal.
3. The learned Senior Counsel for the petitioner also drew the attention of this Court to the Encumbrance Certificate for the subject property which reveals that the release deed has already been returned to the petitioner after registration. By the order, dated 19.06.2024, passed in W.P.32407 of 2023 filed by the petitioner, the release deed was directed to be returned to the petitioner after registration. The said order was also put to challenge by the Registration Department by filing a Writ Appeal in W.A.No.3513 of 2024 before the Division Bench of this Court. By the order, dated 04.12.2024, the Division Bench, dismissed the Writ Appeal filed by the Registration Department.
4. For the foregoing reasons, the prayer sought for in this Writ Petition has to be granted in favour of the petitioner as the Audit Objection raised by the respondents as if a sum of Rs.3,44,38,556/- is still due and payable by the petitioner, is arbitrary, illegal and in violation of the order passed by this Court, dated 19.06.2024 in W.P.32407 of 2023 as well as the order, dated 04.12.2024 passed by the Division Bench of this Court in W.A.No.3513 of 2024.
5. The Special Government Pleader appearing for the respondents has also not raised any serious objection with regard to the submissions made by the learned Senior Counsel before this Court. Since the order passed in the Writ Appeal has attained finality, enuring to the benefit to the petitioner, necessarily, this Writ Petition has to be allowed as prayed for.
6. Accordingly, this Writ Petition is allowed by directing the respondent Nos.4 and 5 to delete the entry in the Encumbrance Certificate relating to the Audit Objection 2021-2022 Paragraph 1/11A as though a sum of Rs.3,44,38,556/- is to be recovered from the petitioner under Section 47A of the Indian Stamp Act, 1899 in respect of Document No.4415 of 2021 on the file of the Sub-Registrar, Thiruporur and complete registration and return the General Power of Attorney, dated 18.12.2025 in pending Document No.P-122 of 2025 on the file of the Sub-Registrar, Kelambakkam, the fifth respondent herein, executed by the petitioner in favour of M/s.Artha Real Estate Corporation Ltd., Chennai, within a period of two weeks from the date of receipt of a copy of this order. There shall be no order as to costs. Consequently, connected miscellaneous petition is closed.
