Madras High Court
Triniity Colour India (P) Limited vs The Inspector General Of ... on 5 February, 2021
W.P.No.27199 of 2017
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated : 05.02.2021
CORAM
THE HONOURABLE MR. JUSTICE S.S.SUNDAR
W.P.No.27199 of 2017
and
W.M.P.No.29069 of 2017
Triniity Colour India (P) Limited,
Represented by its Director,
Mr.A.Yogeshkumar,
S/o.C.Ayyakkan,
No.27, Annamalai Nagar,
Off: Mettur Road,
Erode-638 011. ... Petitioner
Vs.
1.The Inspector General of Registrations,
Mylapore,
Chennai.
2.The Sub-Registrar,
Annur,
Coimbatore District. ... Respondents
Prayer: Petition filed Under Article 226 of the Constitution of India
praying to issue a Writ of Mandamus, directing the respondents 1 and 2
to refund the 2% additional stamp duty collected from the petitioner
Company for registering the Sale Certificate presented by the petitioner
Company as Doc.No.7230/2016 dated 17.11.2016.
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W.P.No.27199 of 2017
For Petitioner : Mr.E.J.Ayyappan
For Respondents : Mr.P.P.Purushothaman
Government Advocate
ORDER
The writ petition has been filed for directing the respondents 1
and 2 to refund the 2% additional stamp duty collected from the
petitioner Company for registering the Sale Certificate presented by the
petitioner Company as Doc.No.7230/2016 dated 17.11.2016.
2.The brief facts are necessary for disposal of the writ petition are
as follows:-
Petitioner is a company registered under the Companies Act. The
petitioner participated in the public auction conducted by the Authorised
Officer of the State Bank of India. The property which was brought to
public auction by the State Bank of India was purchased by the petitioner
company. The authorized officer follwing auction issued a sale certificate
dated 11.11.2016 in favour of the petitioner company under the
SARFAESI Act. Later the sales certificate was presented for
registeration. The second respondent instructed and directed the
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W.P.No.27199 of 2017
petitioner to pay a stamp duty of 7% ( 5% stamp Duty + 2% Surcharge)
on the value of the sales certificate as per instructions. It is stated by the
petitioner that he paid 2% Surcharge under protest for completing the
registration process. Hence the petitioner approached the second
respondent for refund of excess 2% charged as Surcharge on the value of
the sale certificate. Since, there was no response, the petitioner has filed
the above writ petition.
3.The learnced counsel for the petitioner relied upon the judgment
of the learned single Judge of this Court in W.P.No.28343 of 2015 in the
case of P.Pandian Vs.The Inspector General of Registeration and
another
4.The respondent submitted that the petitioner is liable to pay the
stamp duty as required under Article 18 (c) r/w 23 of Indian Stamp Act.
He referred to the judgement of Full Bench of this Court in the case of
Dr.R.Thiagarajan Vs.The Inspector General of Registeration, Chennai
and others reported in 2019 (4) CTC 839 in the counter affidavit. From
the portion of judgment entered in the counter affidavit, it is seen that the
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W.P.No.27199 of 2017
case does not relate to the levy of surcharge under District Municipalities
Act.
5.The question arise for consideration in this writ petition is
whether the petitioner is liable to pay 2% of Surcharge apart from 5% of
Stamp duty before registering the sale certificate issued by the authorized
officier. First of all it is to be noted that 2% surcharge collected from the
petitioner is not under the provisons of Stamp Act. It is specifically stated
that 2% Surcharge was collected from the petitioner as contemplated
under Section 116 (A) of Tamil Nadu District Municipality Act 1920.
6.This Court, in the case of P.Pandian Vs.The Inspector General
of Registeration and another in W.P.No.28343 of 2015 held that
transactions which would attract surcharge under Section 116 (A) of
Tamil Nadu District Municipality Act 1920, does not include the sale
certificate issued by the bank. The sale certificate is not a Sale of
immovable property or Exchange or Gift of immovable property or
mortgage with possession of immovable property or lease in perpetuity
of immovable property as dealt with under Section 116A Tamil Nadu
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W.P.No.27199 of 2017
District Municipalities Act, 1920. It is also held that a Sale Certificate is
a document issued by the duly authorized statutory authority evidencing
the factum of a statutory sale.
7.This Court is of the view that the judgment of Full Bench is not
applicable in this case. The petitioner there in paid stamp duty as per the
market value. It was contented by the petitioner that the petitioner who is
the purchaser of the property in proceedings under SARFAESI Act,
should get the sale certificate by paying stamp duty only for the sale
consideration stated out in the sale certificate and that there is no scope
for reference under section 47 (A) of the Indian Stamp Act which is not
applicable in respect of sale by way of public auction under SARFAESI
Act. The Hon'ble Full Bench did not agree with this proposition and held
that the Section 47A of Stamp Act can be invoked.
8.In the present case, the issue is not relating to under valuation. It
is not a case of petitioner or the respondent that the value mentioned in
the sale certificate is grosly inadequate.
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W.P.No.27199 of 2017
9.The Judgment of the learned single Judge of this Court is
applicable to this case and the full bench judgement has no relevance.
The Respondents are liable to refund the 2% additional surcharge
collected from the petitioner Company for registering the Sale Certificate
presented by the petitioner Company as Doc.No.7230/2016 dated
17.11.2016.
Accordingly, the writ petition is allowed. No Costs. Consequently,
the connected miscellaneous petition is closed.
05.02.2021
Index : Yes/No
Internet:Yes/No
tta
Copy to
1.The Inspector General of Registrations,
Mylapore,
Chennai.
2.The Sub-Registrar,
Annur,
Coimbatore District.
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W.P.No.27199 of 2017
S.S.SUNDAR.,J
tta
W.P.No.27199 of 2017
05.02.2021
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