FRIENDS & CO. Vs. STATE OF PUNJAB

JUDGEMENT

(1.) - The land and building of rice sheller of M/s Sai Ram Rice & General Mills, measuring 37 kanals 4 Marlas comprising in Khata No.30/30, 700/760, Khasra No.55//23/2 (6-0), 24 (8-0), 25 (7-4), 74//3 (8-0), 4 (8-0), situated in revenue estate of Village Talwan, Tehsil Phillaur, District Jalandhar, were sold by way of auction by the authorised officer of the State Bank of Patiala, exercising the power under Sec. 13 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for Short 'the 2002 Act'] read with Rule 12 of the Security Interest (Enforcement) Rules, 2002 [for short 'the 2002 Rules'] to the petitioner in terms of Order dated 26.3.2014 passed by the Debts Recovery Tribunal-II, Chandigarh in SA No.131 of 2014 for a sum of Rs. 2,18,50,000.00. The sale certificate under Rule 9(6) of the 2002 Rules was issued to the petitioner on 10.7.2014. The petitioner served a notice through his Advocate to the respondents to enter mutation of the sale certificate. Respondent No.3 replied to the legal notice of the petitioner on 14.8.2014 informing him that the sale certificate requires registration as per the Punjab Government Instructions issued by the Stamp and Registration Branch vide Memo No.24/151/2012- S.T.-1/8905-26 dated 24.7.2014. According to the said instructions dated 24.7.2014, the Revenue Rehabilitation and Disaster Management Department (Stamp and Registration Branch) directed all the Deputy Commissioners of State of Punjab (Registrar) that the sale certificate issued in the auction of the immoveable property on the orders of the Debts Recovery Tribunal falls within the ambit of compulsory registrable document as per Sec. 17(4) of the Indian Registration Act, 1908 [for short 'the Act'], the sale certificate issued by the Civil/Revenue Court may be registered and pasted in Bahi No.1 but stamp duty is required to be affixed as per the Act. The petitioner sent another notice, after the reply dated 14.8.2014, making a reference to a decision of the Supreme Court in the case of "Smt. Shanti Devi L. Singh Vs. Tax Recovery Officer and others" 1990(2) R.R.R. 281 : AIR 1991 Supreme Court 1880 and prayed the respondents to enter the sale certificate, issued to the petitioner, in Book No.1 and to sanction the mutation. Since the respondents did not reply thereafter, the petitioner filed the present petition.

(2.) In the reply filed by the respondents, it is averred that after the instructions issued vide Memo No. 24/151/2012-S.T.- 1/8905-26 dated 24.7.2014 another instruction was issued substituting it vide Memo No. 24/151/2012-S.T.-1/8927-9215 dated 24.7.2014 directing that Sec. 89(4) of the Act be read instead of Sec. 17(4) of the Act, according to which whether the sale certificate, issued by the Civil/Revenue Court, is registered or pasted in Bahi No.1, Stamp Duty is required to be affixed.

(3.) Learned counsel for the petitioner has relied upon a decision of the Supreme Court in the case of "B. Arvind Kumar Vs. Government of India and others" 2007(5) SCC 745 , in which it has been observed that once a property is sold by public auction, in terms of an order of the Court, bid is accepted and sale is confirmed by the Court in favour of the purchaser, the sale becomes absolute and the title vests with the purchaser. The sale certificate is issued to the purchaser only when the sale becomes absolute, the sale certificate is merely an evidence of such sale and title and no further deed of transfer from Court is contemplated or required. It is further held that insofar as the sale certificate is concerned, as per Sec. 17(2)(xii) of the Act, the sale certificate granted to any purchaser of any property sold by a public auction by a civil or revenue officer does not fall under the category of non-testamentary documents, which require registration under Sec. 17(1)(b) and (c) of the Act. He has further relied upon a decision of the Supreme Court in the case of Smt. Shanti Devi L. Singh (Supra), in which recovery was effected by the Tax Recovery Officer under the Income Tax Act and it was held that the term "Revenue Officer" in term of Sec. 89(4) of the Act it is wide and comprehensive enough to include the Tax Recovery Officer, who effects a compulsory sale for the recovery of an income tax demand and as such the copy of certificate of sale received has to be pasted in Book No.1 and no more.