IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN WEDNESDAY, THE 7TH APRIL 2010 / 17TH CHAITHRA 1932 WP(C).No. 12668 of 2007(G) -------------------------- PETITIONER(S): --------------- DHANALAKSHMI BANK LTD., REGD.OFFICE, DHANALAKSHMI BUILDINGS, TRISSUR-1. BY ADV. SRI.C.K.KARUNAKARAN,SC,DHANALAKSHMI BAN RESPONDENT(S): --------------- 1. STATE OF KERALA, REPRESENTED BY SECRETARY DEPARTMENT OF REGISTRATION, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. 2. SUB REGISTRAR, SUB REGISTRAR'S OFFICE, THIRUVANANTHAPURAM. 3. RECOVERY OFFICER, DEBTS RECOVERY TRIBUNAL, ERNAKULAM. GOVERNMENT PLEADER SMT.NISHA BOSE THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 07/04/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C)No.12668/2007 APPENDIX PETITIONER'S EXHIBITS: EXT.P1. TRUE COPY OF CERTIFICATE OF SALE DATED 27-2-2004 IN FAVOUR OF THE PETITIONER BY THE 3RD RESPONDENT. / TRUE COPY / P.S.TO JUDGE P.N.RAVINDRAN, J. ----------------------------------------- W.P(C)No.12668 of 2007 ----------------------------------------- Dated this the 7th day of April, 2010 JUDGMENT The petitioner, a banking company and a scheduled bank, filed O.A.No.K-20 of 1998 in the Debts Recovery Tribunal, Ernakulam, for realisation of the money lent and advanced to Sri.V.Girish and another. O.A.No.K-20 of 1998 was decreed and thereupon a certificate of recovery was issued by the Debts Recovery Tribunal to the 3rd respondent Recovery Officer. The Recovery Officer brought the mortgaged property to sale. With the permission of the Debts Recovery Tribunal, the petitioner bank participated in the auction. The petitioner bank was the highest bidder and the sale was knocked down in its favour. Thereafter the sale was confirmed and Ext.P1 sale certificate date 27.2.2004 was issued by the Recovery Officer. 2. The petitioner states that though the 3rd respondent forwarded a copy of Ext.P1 sale certificate to the Sub Registrar, Trivandrum for filing in Book No.1 as envisaged in section 89(4) of the Registration Act, 1908, the Sub Registrar took the stand that the certificate of sale cannot be registered and that only a sale deed duly executed by the 3rd respondent vesting the property in the petitioner can be registered. This writ petition is filed contending that the second W.P(C)No.12668 of 2007 -:2:- respondent Sub Registrar is bound to file Ext.P1 in Book No.1 in terms of section 89(4) of the Registration Act, 1908. It is also contended that the certificate of sale does not require registration and that no stamp duty is payable. In this writ petition, the petitioner seeks the following reliefs:- 3.1. Issue a writ of mandamus or other appropriate writ, order or direction to the 2nd respondent commanding that Ext.P1 certificate of sale be filed in Book 1. 3.2. To declare that no registration fee or stamp duty is required for filing a Sale Certificate issued by the 3rd respondent. 3. A counter affidavit has been filed on behalf of the first respondent wherein it is contended that the certificate of sale is chargeable to stamp duty and that if proper stamp duty is paid on the certificate of sale and a copy of the certificate of sale is furnished, it will be filed in terms of section 89(4) of the Registration Act, 1908. 4. The issue raised in the instant case is covered by the decision of a learned single Judge of this Court in Varghese v. Sub Registrar, 2007 (2) KLT 223 and the decision of a Division Bench of this Court in Ajith Kumar v. Jeeja, 2009(1) KLT 630. In the said decisions it was held that stamp duty is payable on a certificate of sale issued by the W.P(C)No.12668 of 2007 -:3:- Recovery Officer under the Recovery of Debts due to Banks and Financial Institutions Act, 1993 and that no registration charge is payable for filing a copy of the sale certificate in Book No.1 in terms of section 89(4) of the Registration Act, 1908. In the said cases this Court directed the Recovery Officer to execute a fresh sale certificate on the purchaser producing the requisite stamp paper. This Court also directed that thereafter a copy of the sale certificate shall be filed in Book No.1 by the Sub Registrar concerned. In such circumstances the petitioner bank cannot be heard to contend that it is not liable to pay stamp duty. I accordingly, dispose of the writ petition with the following directions:- (1) The 3rd respondent Recovery Officer shall, in the event of the petitioner bank producing the requisite stamp papers before him, execute a sale certificate on the stamp paper. The petitioner bank shall produce the requisite stamp paper, within one month from the date of receipt of a copy of this judgment, before the 3rd respondent. (2) The 3rd respondent shall thereafter forward a copy of the sale certificate to the Registering Authority, within whose local limits the property comprised in the sale certificate is situated. This shall be done within one week from the date of issue of the fresh sale W.P(C)No.12668 of 2007 -:4:- certificate. (3) The second respondent Registering Authority shall thereupon file a copy of the sale certificate in Book No.1 in terms of sub-section (4) of section 89 of the Registration Act, 1908. P.N.RAVINDRAN, Judge. ahg. P.N.RAVINDRAN, J. --------------------------- W.P(C)No.12668 of 2007 ---------------------------- JUDGMENT 7th April, 2010