INSPECTOR GENERAL OF REGISTRATION Vs. KANAGALAKSHMI GANAGURU

JUDGEMENT

(1.) The respondent herein is the auction purchaser in pursuant to the proceedings initiated under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred as SARFAESI Act). Hence certificate issued in her favour was sought to be registered. After registration, a notice was issued under Section 47(A) of the Indian Stamp Act, 1899 to show cause as to why the market value fixed shall not be collected. Challenging the same, inter alia contending that auction being conducted publicly under SARFAESI Act, the appellants are bound to accept it, the writ petition was filed. The learned single Judge placing reliance upon the earlier orders passed by this Court pleased to allow the writ petition. Hence, the present appeal.

(2.) The learned Special Government Pleader appearing for the appellants would submit that the learned Single Judge has not taken into consideration of the fact that the officer who conducted the sale under the SARFAESI Act is not akin to a Collector or Revenue Officer as mentioned in Article 18 of the Indian Stamp Act. In the same way, the proceedings initiated and concluded under SARFAESI Act cannot be equated with the public auction conducted by Civil or Revenue Court. In support of his contention reliance has been placed on the decision rendered by the learned Single Judge in Re, the Official Liquidator, High Court, Madras, 2010 2 CTC 113.

(3.) The learned counsel appearing for the respondent/writ petitioner would submit that unless there is a reason to believe there is willful under valuation, proceedings under Section 47(A) of the Indian Stamp Act cannot be initiated. It is further submitted that inasmuch as auction was initiated under SARFAESI Act by an Authorised Officer who conducted auction, he should be considered as one coming under the Article 18 of the Indian Stamp Act.