No to registration fee by auction purchasers: Madras High Court

No to registration fee by auction purchasers: Madras High Court

Buyers of immovable property need not pay stamp duty when filing a copy of the sale certificate

The Madras High Court has held that the auction purchasers of an immovable property are not required to pay registration fees or stamp duty when filing a 'copy' of the sale certificate.

The single bench of Justice G.K. Ilanthiraiyan ruled that when the purchaser goes for the registration of the original sale certificate issued by the court officer under the Indian Stamp Act, the stamp duty is to be paid as per the Registration Act, treating it as conveyance, namely, auction purchase value of the property.

But when a copy of the sale certificate is presented before the first respondent (not for the purpose of registration, but only for filing it in his office as contemplated under the Registration Act), he cannot refuse to file a copy of the sale certificate by demanding payment of stamp duty and registration fees.

The court held that the impugned order on the file of the first respondent is set aside. The respondent is directed to file the sale certificate presented by the second respondent under the Registration Act, 1908, within two weeks.

If the sale certificate is not available in the records of the first respondent, the second respondent is directed to present one more copy of the sale certificate issued in favour of the petitioner, the court ruled.