Proceedings No.35856/P1/2019, Revision Petition on Document No.P325/2019
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued Proceedings No.35856/P1/2019 dated 20 November 2019 concerning a revision petition against the classification of Sale Deed No.P325/2019 as both a sale and a transfer of mortgage. The proceedings examine a demand for a deficit registration fee of Rs.3,16,00,000, but the supplied text does not include the authority's final decision on the revision petition.
What the proceedings concern
Proceedings No.35856/P1/2019 of the Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, concern Sale Deed No.P325/2019 presented at the Sub Registrar Office, Kundrathur. W.S. Industries (India) Limited executed the deed in favour of W.S.T&D Limited on 26 March 2019.
The property value stated in the deed was Rs.316,00,00,000, and the stamp duty borne was Rs.22,12,03,500. The seller had previously mortgaged the property to Abhishaya Infrastructure Private Limited. Under the sale deed, the purchaser agreed to take over an outstanding loan of Rs.312,46,68,855 instead of paying that amount to the seller.
Classification disputed
The Sub Registrar, Kundrathur, impounded the deed under section 33 of the Indian Stamp Act, 1899, believing that it contained both a conveyance on sale and a mortgage with possession. The document was forwarded to the District Registrar, Chennai (South).
The District Registrar classified the deed as containing:
- A conveyance on sale under Article 23.
- A transfer of mortgage under Article 62(c)(ii).
- No deficit stamp duty.
- A deficit registration fee of Rs.3,16,00,000.
The District Registrar relied on the sale deed's terms, including the mortgagee's consent to the sale and the purchaser's agreement concerning the outstanding loan.
Purchaser's case
W.S.T&D Limited filed a revision petition under section 56(1) of the Indian Stamp Act, 1899. Its main arguments were:
- The mortgagee's consent only facilitated registration despite the existing mortgage.
- The deed did not expressly transfer any mortgage rights.
- Abhishaya Infrastructure Private Limited remained the mortgagee.
- The mortgagee was not a party to the sale deed.
- Acknowledging an existing mortgage did not itself transfer that mortgage.
- The purchaser acquired the seller's equity of redemption, not the mortgagee's rights.
High Court directions and status
The High Court of Madras directed W.S.T&D Limited to provide an irrevocable bank guarantee of Rs.316 lakhs and directed the revision petition to be disposed of within eight weeks. Upon receipt of the guarantee and an undertaking letter, the Sub Registrar was directed to register and return the document within three days.
The supplied text records hearings and written arguments before the Chief Controlling Revenue Authority, but it does not reproduce the final determination of the revision petition.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Did the District Registrar find any deficit stamp duty on Sale Deed No.P325/2019?
No. The District Registrar determined the deficit stamp duty as nil, but calculated a deficit registration fee of Rs.3,16,00,000.
Why was the sale deed treated as a possible transfer of mortgage?
The property was already mortgaged, the mortgagee consented to the sale, and the purchaser agreed to take over an outstanding loan of Rs.312,46,68,855 instead of paying that amount to the seller.
What did W.S.T&D Limited argue in the revision petition?
W.S.T&D Limited argued that no mortgage rights were transferred, the existing mortgagee remained unchanged, and the sale deed merely acknowledged the mortgage and transferred the seller's equity of redemption.
Does the supplied text state the final result of the revision petition?
No. Although the proceedings are described as final orders, the supplied text ends after recording the hearings and the petitioner's arguments, without reproducing the final determination.
