PHOENIX ARC PRIVATE LIMITED Vs. STATE OF KERALA

JUDGEMENT

(1.) The petitioner, Phoenix ARC Private Limited, is a company as defined in clause (ba) of Sec. 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'the SARFAESI Act' for short). It is an asset reconstruction company registered with the Reserve Bank of India. As per Sec. 5 of the SARFAESI Act, any asset reconstruction company may acquire financial assets of any Bank or financial institutions which are classified as Non-Performing Asset. The petitioner got assigned debts along with the right to proceed against the underlying security interest as envisaged under Sec. 5 of the SARFAESI Act from the State Bank of Travancore, the Federal Bank Ltd and the South Indian Bank Ltd. The petitioner sought to register the assignment deeds in favour of it [Exts. P2 to P4] with the Sub Registrar, Ernakulam (respondent No.5). The petitioner submitted before the Sub Registrar that in view of Sec. 5(1A) of the SARFAESI Act and 8F of the Indian Stamp Act,1899, no stamp duty is payable to assignment deeds. Respondent No.5 referred the matter to respondent No.3, the District Registrar (General)/District Collector, Ernakulam, for adjudication. Respondent No.3 passed Exts.P9, P10 and P11 orders holding that as the Kerala Stamp Act, 1959, does not fix stamp duty for assignment agreement, the deeds come under 'conveyance' as provided in Sec. 2(d) of the Kerala Stamp Act. Respondent No.3 further found that stamp duty, as provided in Article 21 of the Schedule to the Kerala Stamp Act, 1959, being 8% of the purchase money, is to be remitted. The petitioner challenges Exts.P9, P10 and P11 orders issued by respondent No.3.

(2.) The petitioner has prayed for the following reliefs in the Writ Petition.

(3.) The learned Senior Counsel appearing for the petitioner Sri. A.V. Thomas submitted the following:-