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 Document No.P325/2019 as both a sale and a transfer of mortgage. The supplied text records the facts, hearing and arguments, but does not include the authority's final determination.
What the proceedings cover
Proceedings No.35856/P1/2019 of the Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, concern Sale Deed Document No.P325/2019 at the Sub Registrar Office, Kundrathur. W.S. Industries (India) Limited executed the sale deed in favour of W.S.T&D Limited on 26 March 2019.
The District Registrar, Chennai (South), treated the document as containing two transactions, a conveyance on sale and a transfer of mortgage. W.S.T&D Limited challenged that classification through a revision petition under section 56(1) of the Indian Stamp Act, 1899.
Property value and disputed fee
The proceedings record the following financial details:
- The property value stated in the document was Rs.316,00,00,000.
- The document bore stamp duty of Rs.22,12,03,500.
- The District Registrar found no deficit stamp duty.
- The District Registrar determined a deficit registration fee of Rs.3,16,00,000.
The property had previously been mortgaged to Abhishaya Infrastructure Private Limited through documents registered at the Sub Registrar Office, Kundrathur. Under the sale deed, the purchaser agreed to take over an outstanding loan amount of Rs.312,46,68,855 instead of paying that amount to the seller.
Why the classification was disputed
The Sub Registrar initially impounded the document because the sale involved property already under mortgage. The District Registrar later classified it as a sale combined with a transfer of mortgage, relying on the mortgagee's consent to the sale and the sale deed recitals.
W.S.T&D Limited argued that:
- The mortgagee's consent only enabled registration despite the existing mortgage.
- The sale deed did not transfer any mortgage rights.
- The mortgagee was not a party to the sale deed.
- Abhishaya Infrastructure Private Limited remained the mortgagee.
- The purchaser merely acquired the seller's equity of redemption and acknowledged the existing mortgage.
Court directions and status in the supplied text
The High Court of Madras directed W.S.T&D Limited to provide an irrevocable bank guarantee of Rs.316 lakhs and directed disposal of the revision petition within eight weeks. On furnishing the guarantee and an undertaking, the Sub Registrar was directed to register and return the document within three days.
The supplied text describes hearings held on 17 October 2019 and 14 November 2019. It does not reproduce the Chief Controlling Revenue Authority's final conclusion on the disputed classification or registration fee.
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 the sale deed?
No. The District Registrar recorded the deficit stamp duty as nil, while determining 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 the outstanding loan amount. The District Registrar treated these features as indicating both a sale and a transfer of mortgage.
What did the purchaser argue about the existing mortgage?
W.S.T&D Limited argued that no mortgage rights were transferred, the mortgagee remained unchanged and was not a party to the sale deed. It said the deed only acknowledged the mortgage and transferred the seller's equity of redemption.
Does the supplied text confirm the final result of the revision petition?
No. The supplied text records the dispute, court directions, hearings and purchaser's arguments, but does not include the final determination.
