Madras High Court Rules Stamp Duty Not Mandatory for Recording Sale Certificates
In a recent ruling, the Madras High Court declared that the registration of sale certificates issued by courts or authorized officers overseeing public auctions of immovable properties is not obligatory. Consequently, Sub Registrars are not entitled to demand stamp duty solely for recording these certificates in their books.
Justice N. Sathish Kumar highlighted that Section 89 of the Registration Act of 1908 mandates courts and authorized auction officers to forward the sale certificates to the jurisdictional Sub Registrars. The latter are then tasked with recording these certificates in Book No.1. As this requirement is imposed by law, the sale certificates do not fall under the purview of conveyance, rendering them exempt from stamp duty, clarified the judge.
The judgment also emphasized that the term ‘Revenue Officer’ in Section 89 of the Registration Act includes authorized officers conducting public auctions under the SARFAESI Act of 2002. Additionally, Justice Kumar underscored that Section 47A of the Registration Act, empowering a Sub Registrar to refer a document to the Collector in case of doubts regarding undervaluation of a property, does not apply to sale certificates.
However, Justice Kumar cautioned that unregistered sale certificates hold no evidentiary value and may be impounded by the concerned forum. It was noted that payment of stamp duty and registration charges is essential for the registration of sale certificates, ensuring their validity and evidentiary value in property related matters. The judge emphasized that only stamp duty and registration charges need to be paid, exempting the certificate holders from surcharge/transfer duty.
This significant ruling provides clarity and guidance on the legal aspects related to the recording and registration of sale certificates, offering valuable insight and direction to stakeholders in property transactions governed by these regulations.
