Proceedings on revision petition about a bank Sale Certificate

What this document is

Proceedings P.Mu.745/P1/2019 dated 20.01.2023 were issued by the Inspector General of Registration and Chief Controlling Revenue Authority, Chennai 28. The proceedings decide a revision petition filed by Mrs. R. Kalaivani against the District Registrar, North Chennai order No.9300/A1/2017 dated 24.12.2018, which had fixed deficit stamp duty and a penalty for a bank issued Sale Certificate.

Who it affects

• Auction purchasers and property buyers who receive a Sale Certificate issued by a bank (here, State Bank of India).
• People presenting such Sale Certificates for registration at Sub Registrar Offices.
• Anyone facing deficit stamp duty proceedings and penalty on a Sale Certificate.

Property and document details mentioned

• Pending document number: P52/2018, Arani Sub Registrar Office.
• Document title: SALE CERTIFICATE.
• Executed by: State Bank of India.
• Executed date: 18.6.2018.
• Purchaser: Mrs. T. Kalaivani, wife of Mr. Dinakaran.
• Document value: Rs.39,00,000.
• Stamp duty paid with the document: Rs.1,95,020.
• Deficit stamp duty and penalty fixed by the District Registrar: Rs.77,980 plus Rs.1,000.

Key points decided

• The Sub Registrar treated the document as not classifiable under Article 18, because it was not a sale certificate issued after an auction conducted by a Civil or Revenue Court, or by the Collector or a Revenue Officer, and therefore classified it under Article 23 and impounded it under Section 33 of the Indian Stamp Act.
• The Inspector General of Registration and Chief Controlling Revenue Authority relied on a Full Bench decision in W.P.(MD) No.3989 of 2017, which states that a Sale Certificate issued by the Authorized Officer of a bank is liable for stamp duty under Article 18-C read with Article 23 of Schedule 1 of the Indian Stamp Act, and that the Registering Officer can proceed in cases of under valuation.
• The proceedings also refer to W.A.No.633/2022 and 1053/2022, which clarify that stamping and registration are needed when the auction purchaser presents the original sale certificate for registration, but stamp duty and registration fee cannot be demanded when only a copy is forwarded for filing in Book I under Section 89(4) of the Registration Act.
• The argument that penalty was wrongly imposed was rejected, noting that Section 40(1)(b) provides for levy of penalty.

Outcome

• The revision petition was dismissed.
• The District Registrar, North Chennai order was accepted and confirmed.
• The Sale Certificate had already been registered as document number 1917/2022 on 12.4.2022 after payment of the deficit stamp duty and deficit registration fee raised as objections.