Legal Issue
Whether a sale certificate requires registration or not unde the Registration Act 1908 ?
More Than 100 Year Old Precedents addressing the Legal Issue
It has been settled almost 150 years ago through a judgement of the Madaras High Court in the case of the Board of Revenue no. 2 of 1875 dated 19-10-1875, wherein Madras High Court has expressed its opinion that a certificate of sale cannot be regarded as conveyance subject to stamp duty.
In Adit Ram Vs Masarat-un-Nisa (Manu/UP/0089/1883), the Allahbad High Court had opined that a sale certificate is not an instrument of the kind mentioned in clause (b) of Section 17 of Act III of 1877 and is not compulsorily registrable.
Recent Precedents
The Supreme Court of India in the case of Esjaypee Impex Pvt. Ltd Vs Asst. General Manager and Authorised Officer, Canara Bank (2021)11SCC 537, took a similar view that the mandate of law in terms of section 17(2)(xii) read with 89(4) of the Registration Act, 1908 only required the authorised officer of the Bank under the SARFAESI Act to hand over the duly validated Sale Certificate to the Auction Purchaser with a copy forwarded to the Registering Authorities to be filed in Book-I as per section 89 of the Registration Act then it will have the same effect as registration and obviatges the requirement of any further action.
Recently in the case of the Inspector General of Registration & Anr Versus G. Madhurambal & Anr. (SLP ( c ) No. 16949 of 2022 judgement dated 11-11-2022, which has been reported in the 2022 Live Law(SC)969, the same issue was again raised before the Supreme court of India. While dismissing the SLP against the order of the Madras High court the Supreme Court has expressed its displeasure on the petition raising the same issue which has been conclusively decided.
Way Forward for the Legal Issue
The supreme court cautioned the authorities to stop filing unnecessary special leave petitions only with the objective of attaining some kind of a final dismissal from the court everytime. Court cautioned that this time it spared the cost but the next time it will not spare it.
Conclusion
Therefore, the issue is no more res-integra (means this issue is already decided and its no longer a undecided issue), the sale certificate of an immovable property does not require registration under the provisions of the Registration Act, 1908 and it is also not subject to payment of the Stamp Duty.
