LexTHE STATE OF PUNJAB & ANR. versus M/S FERROUS ALLOY FORGINGS P LTD. & ORS.
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[2024] 11 S.C.R. 1335 : 2024 INSC 890 The State of Punjab & Anr. v. M/s Ferrous Alloy Forgings P Ltd. & Ors. (Civil Appeal No. 12527 of 2024) 19 November 2024 [J.B. Pardiwala and R. Mahadevan, JJ.] Issue for Consideration Whether it is mandatory for the successful auction purchaser to deposit the stamp duty for the sale certificate to be issued to it in view of the provisions of the Stamp Act and the Registration Act. Headnotes† Registration Act, 1908 – s.89(4) and s.17(2)(xii) – Stamp Act – Arts. 18 and 23 of first Schedule – Code of Civil Procedure, 1908 – Order XXI Rule 94 – Successful auction purchaser – Sale certificate issued – Whether it is mandatory to deposit stamp duty in view of the provisions of the Stamp Act and the Registration Act: Held: The position of law is settled that a sale certificate issued to the purchaser in pursuance of the confirmation of an auction sale is merely evidence of such title and does not require registration under Section 17(1) of the Registration Act – It is not the issuance of the sale certificate which transfers the title in favour of the auction purchaser – The title is transferred upon successful completion of the sale and its confirmation by the competent authority after all the objections against the sale have been disposed of – Further, various decisions of the Supreme Court makes it clear that sale certificate issued by the authorised officer is not compulsorily registrable – Mere filing under Section 89(4) of the Registration Act itself is sufficient when a copy of the sale certificate is forwarded by the authorised officer to the registering authority – However, a perusal of Articles 18 and 23 respectively of the first schedule to the Stamp Act respectively makes it clear that when the auction purchaser presents the original sale certificate for registration, it would attract stamp duty in accordance with the said Articles – As long as the sale certificate remains as it is, it is not compulsorily registrable – It is only when the auction purchaser uses the certificate for some other purpose that the requirement of payment of stamp duty, etc. would arise. [Paras 17, 20] 1336 [2024] 11 S.C.R. Digital Supreme Court Reports Constitution of India – Art.226 – Exercise of jurisdiction u/Art.226, when alternate remedy is available: Held: It is settled that an alternate remedy by itself does not divest the High Court of its powers under Article 226 of the Constitution in an appropriate case though ordinarily, a writ petition should not be entertained when an efficacious alternate remedy is provided by law – It was held that when a right is created by a statute, which itself prescribes the remedy or procedure for enforcing the right or liability, resort must be had to that particular statutory remedy before invoking the discretionary remedy under Article 226 of the Constitution – However, this Court clarified that this rule of exhaustion of statutory remedies is a rule of policy, convenience and discretion and if the High Court is objectively of the view that the nature of the controversy requires the exercise of its writ jurisdiction, such a view would not readily be interfered with. [Para 21] Case Law Cited Municipal Corporation of Delhi v. Pramod Kumar Gupta [1990] Supp. 3 SCR 547 : AIR 1991 SC 401; Smt. Shanti Devi L. Singh v. Tax Recovery Officer and Others [1990] 2 SCR 627 : AIR 1991 SC 1880; B. Arvind Kumar v. Govt. of India and Others (2007) 5 SCC 745; M/s Esjaypee Impex Private Limited v. The Asst. General Manager and Authorized Officer Canara Bank (2021) 11 SCC 537; Inspector General of Registration and Another v. G. Madhurambal and Another 2022 SCC Online SC 2079; Radha Krishan Industries v. State of H.P. [2021] 3 SCR 406 : (2021) 6 SCC 771 – referred to. List of Acts Registration Act, 1908; Companies Act, 1956; Code of Civil Procedure, 1908; Stamp Act, 1899; Constitution of India. List of Keywords Auction purchaser; Sale certificate; Registration; Stamp duty; Sale certificate for registration; Alternate remedy; Article 226 of Constitution. Case Arising From CIVIL APPELLATE JURISDICTION: Civil Appeal No. 12527 of 2024 [2024] 11 S.C.R. 1337 The State of Punjab & Anr. v. M/s Ferrous Alloy Forgings P Ltd. & Ors. From the Judgment and Order dated 28.11.2013 of the High Court of Punjab & Haryana at Chandigarh in CWP No. 11055 of 2001 Appearances for Parties Karan Sharma, Abhishek Budhiraja, Advs. for the Appell
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