PALIKA TOWNS LLP Vs. STATE OF U. P.

JUDGEMENT

(1.) The petitioner - M/s Palika Towns LLP, is a Company incorporated under the Companies Act, 1956, has preferred present writ petition challenging an order dtd. 22/8/2023 passed by second respondent / Chief Controller Revenue Authority, Board of Revenue, Circuit Court, Meerut. It has also been prayed in the writ petition that the fourth respondent / District Magistrate, Gautambuddha Nagar may be directed to refund the amount of Rs.6,00,18,100.00 with interest @ 15% p.m. deposited by the petitioner.

(2.) Brief facts of the case are that the petitioner Company has its registered office at DSC-319, DLF South Court, Saket, New Delhi - 110017. A public notice was issued in daily newspaper Business Standard, New Delhi on 8/3/2019 for the sale of assets of M/s Moser Baer India Ltd., thus, insolvency proceedings were initiated against M/s Moser Baer India Ltd. under the Indian Insolvency and Bankruptcy Code, 2016[The Act, 2016] before the National Company Law Tribunal, New Delhi, in which official liquidator was appointed by order dtd. 20/9/2018. Accordingly, e-auction of the assets of M/s Moser Baer India Ltd. was conducted. The assets included industrial land building bearing no. 66, admeasuring area 270201 square meter situated at Sector Ecotech-2, Greater Noida, Gautambuddha Nagar.

(3.) The petitioner participated in the auction proceedings and being the highest bidder, purchased the property in question for a sum of Rs.145,75,00,000.00, in support of which a sale certificate dtd. 11/9/2019 was issued by official liquidator. The petitioner applied for the registration of sale certificate in terms of Article 18 of Schedule 1-B of the Indian Stamp Act, 1899[The Stamp Act], on 8/2/2021. The respondent no. 5 raised objections and calculation was made on 8/2/2021 by the Sub-Registrar, Sadar, Greater Noida, Gautambuddha Nagar / respondent no. 5, who issued a letter stating that the stamp duty is to be paid on the basis of market rate in terms of Article 23 of Schedule 1-B of the Stamp Act. The District Magistrate issued a letter dtd. 17/5/2021 to the Special Secretary, Stamp and Registration, U.P., referring to the issue related with applicability of Article 18 of Schedule I-B of the Stamp Act to the property sold out in e-auction and the same was replied by stating that the District Magistrate is fully competent to take decision. The District Magistrate vide order dtd. 23/7/2021 directed the petitioner to pay deficient stamp fee amount of Rs.4,61,67,750.00 along with interest at the rate of 1.5% per month from the date of execution till the date of making payment, as well as the deficient registration fee of Rs.92,33,550.00 and penalty of Rs.4,61,200.00. The petitioner deposited an amount of Rs.6,00,18,100.00 under protest on 28/7/2021. Thereafter, a sale certificate was issued in favour of the petitioner and the instrument was registered on 30/7/2021 at Bahi No. 1, Zild No. 39084, Page Nos. 245-294 at Sl. No. 12873. The petitioner approached the Board of Revenue, Circuit Court, Meerut against the order dtd. 23/7/2021 passed by the District Magistrate under Sec. 56(1) of the Stamp Act, which was rejected on 22/8/2023 by the Chief Controller Revenue Authority, Board of Revenue, Circuit Court, Meerut without considering the provisions of law. Hence the present writ petition.