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SUPREME COURT OF INDIA
Sanjay Kishan Kaul, Abhay S. Oka, JJ.
The Inspector General of Registration & Anr. – Appellants
Versus
G. Madhurambal & Anr. – Respondents
Petition(s) for Special Leave to Appeal (C) No(s). 16949 of 2022 (Arising Out of Impugned Final Judgment and Order Dated 20-07-2022 in WA No. 681 of 2022 Passed by the High Court of Judicature at Madras)
Decided On : 11-11-2022
Stamp Duty - Sale Certificate - Interpretation of Section 17 of Act III of 1877 and Section 89(4) of the Registration Act, 1908
Fact of the Case:
The court dismissed the special leave petitions and emphasized the settled view on the issue of stamp duty on sale certificates, citing historical judgments and recent precedents.
Finding of the Court:
The court found that the issue of stamp duty on sale certificates has been consistently settled for the last 150 years, and emphasized that unnecessary special leave petitions should not be filed with the objective of attaining a final dismissal from the court.
Issues: Interpretation of stamp duty on sale certificates, filing of unnecessary special leave petitions
Ratio Decidendi: The court reiterated the settled view on stamp duty for sale certificates and warned against filing unnecessary special leave petitions.
Final Decision: The special leave petitions were dismissed, and pending applications were disposed of.
ORDER
1. Learned counsel for the petitioner(s) has made a valiant endeavor to persuade us to interfere with the impugned judgment(s) but not successfully. It is logically so as this issue has been repeatedly settled and if one may say, a consistent view followed for the last 150 years. We may refer to the judgments by the Madras High Court in the Board of Revenue No.2 of 1875 (In Re: Case Referred) dated 19.10.1875 opining that a certificate of sale cannot be regarded as a conveyance subject to stamp duty, by the Allahabad High Court in Adit Ram v. Masarat-un-Nissa, Manu/UP/0089/1883 opining that a sale certificate is not an instrument of the kind mentioned in clause (b) of Section 17 of Act III of 1877 and is not compulsorily registrable and this Court's view in Esjaypee Impex Pvt. Ltd. v. Asst. General Manager and Authorised Officer, Canara Bank, (2021) 11 SCC 537 opining that the mandate of law in terms of Section 17(2)(xii) read with Section 89(4) of the Registration Act, 1908 only required the Authorised Officer of the Bank under the SARFAESI Act to hand over the duly validated Sale Certificate to the Auction Purchase with a copy forwarded to the Registering Authorities to be filed in Book I as per Section 89 of the Registration Act and order of this Court in M.A. No.19262/2021 in SLP(C) No.29752/2019 dated 29.10.2021 opining that once a direction is issued for the duly validated certificate to be issued to the auction purchaser with a copy forwarded to the registering authorities to be filed in Book I as per Section 89 of the Registration Act, it has the same effect as registration and obviates the requirement of any further action.
2. It is time that the authorities stop filing unnecessary special leave petitions only with the objective of attaining some kind of a final dismissal from this Court every time. Costs this time has been spared but will not be spared the next time.
3. The needful be done in terms of the impugned judgment(s) within 15 days from today.
4. The special leave petitions are dismissed.
5. Pending applications stand disposed of.
Sale certificates issued by banks are not compulsorily registrable and filing them in Book No.1 does not attract stamp duty.
(1) Deposit of stamp duty for sale certificate – Sale certificate issued to purchaser in pursuance of confirmation of an auction sale is merely evidence of such title and does not require registratio....
The sale certificate from a public auction does not require registration under the Registration Act, and the value for stamp duty is based on the purchase price stated, not an assessed market value.
Sale certificates issued after public auctions do not require registration or stamp duty if solely for filing purposes.
The main legal point established in the judgment is that sale certificates should be filed in Book No.1 under Section 89(4) of the Registration Act without insisting on stamp duty, based on the decis....
The court clarified registration obligations under Section 89(4) of the Registration Act, distinguishing sale certificates from conveyances subject to stamp duty.
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