V GOVINDA CHETTY Vs. SUB-REGISTRAR

JUDGEMENT

(1.) THIS is an application by the applicants (third party) to direct the Sub-Registrar, Mylapore (first respondent herein), to register the sale deed executed by the third respondent-official assignee, without insisting on a no objection certificate from the second respondent-appropriate authority, Income-tax Department The material averments as stated in the affidavit filed in support of the application are as followsOne Thiagarajan and Nagarathinammal were declared insolvents, and their properties vested with the third respondent herein. One item of property which the official assignee took possession was Door No. 18 (Plot No. 12-A/2), School View Road, Ramakrishna Nagar, Raja Annamalai puram, Madras. By orders of court, a public auction was conducted on September 11, 1993, by the official assignee, and in that auction, the applicants were declared as successful bidders for a sum of Rs. 10, 03, 000 and they were declared as such.

(2.) THE entire amount was deposited by them with the third respondent who executed the sale deed on December 9, 1993, in their favourUnder section 115 of the Presidency Towns Insolvency Act, the sale deed executed by the official assignee is exempted from stamp duty and other duties whatsoever. It is further averred in the affidavit that the sale deed dated December 9, 1993, executed in their favour by the official assignee is also exempted from stamp duty. When they produced the sale deed before the first respondent for registration, he wrote to the second respondent seeking a clarification as to whether no objection certificate was required under Chapter XX-C of the Income-tax Act as the value of the property exceeded Rs. 10 lakhs.

(3.) IN view of the above contentions, the appropriate authority stated that without a no objection certificate from him, the document is not liable to be registeredThe official assignee has also filed a report and, according to him, it is not a case which requires a no objection certificate from the second respondentI heard learned counsel for all parties with respect to this applicationSection 269UC reads thus"269UC. Restrictions on transfer of immovable property.--(1) Notwithstanding anything contained in the Transfer of Property Act, 1882 (4 of 1882), or in any other law for the time being in force, no transfer of any immovable property of such value exceeding five lakh rupees as may be prescribed, shall be effected except after an agreement for transfer is entered into between the person who intends transferring the immovable property (hereinafter referred to as 'the transferor') and the person to whom it is proposed to be transferred (hereinafter referred to as 'the transferee') in accordance with the provisions of sub-section (2) at least three months before the intended date of transfer(2) The agreement referred to in sub-section (1) shall be reduced to writing in the form of a statement by each of the parties to such transfer or by any of the parties to such transfer acting on behalf of himself and on behalf of the other parties(3) Every statement referred to in sub-section (2) shall, --(i) be in the prescribed form (ii) set forth such particulars as may be prescribed and(iii) be verified in the prescribed manner, and shall be furnished to the appropriate authority in such manner and within such time as may be prescribed, by each of the parties to such transaction or by any of the parties to such transaction acting on behalf of himself and on behalf of the other parties."Section 269UL of the INcome-tax Act reads thus" Restrictions on registration, etc., of documents in respect of transfer of immovable property.--(1) Notwithstanding anything contained in any other law for the time being in force, no registering officer appointed under the Registration Act, 1908 (16 of 1908), shall register any document which purports to transfer immovable property exceeding the value prescribed under section 269UC unless a certificate from the appropriate authority that it has no objection to the transfer of such property for an amount equal to the apparent consideration therefor as stated in the agreement for transfer of the immovable property in respect of which it has received a statement under sub-section (3) of section 269UC, is furnished, along with such document(2) Notwithstanding anything contained in any other law for the time being in force, no person shall do anything or omit to do anything which will have the effect of transfer of any immovable property unless the appropriate authority certifies that it has no objection to the transfer of such property for an amount equal to the apparent consideration therefor as stated in the agreement for transfer of the immovable property in respect of which it has received a statement under sub-section (3) of section 269UC(3) IN a case where the appropriate authority does not make an order under sub-section (1) of section 269UD for the purchase by the Central Government of an immovable property, or where the order made under sub-section (1) of section 269UD stands abrogated under sub-section (1) of section 269UH, the appropriate authority shall issue a certificate of no objection referred to in sub-section (1) or, as the case may be, sub-section (2) and deliver copies thereof to the transferor and the transferee." * It is not disputed that the sale in favour of the applicants was by public auction and not on the basis of any agreement entered into between them and the official assignee.