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Allahabad HC summons Ghaziabad DM for violating division bench order to register sale certificates, issuing demand notice of over ₹14 million

Allahabad HC summons Ghaziabad DM for violating division bench order to register sale certificates, issuing demand notice of over ₹14 million

The Allahabad High Court directed the Ghaziabad District Magistrate to personally appear before it for violating a Division order directing immediate registration of sale certificates issued in favor of the petitioner and instead issuing demand notice of more than Rs. 14 crores under the Indian Stamp Act, 1899.

The petitioner had already approached the High Court seeking a direction to the authorities under the Registration Act, 1908, to file the sale certificate issued to the petitioner by the DRT in Book No.-1 under Section 89(4) of the Act of Registration.

The ground was decided with a series of similar cases, wherein the Division Bench of the High Court observed that despite issuing sale certificates in favor of the petitioners, the same had not been recorded in Book-1.

Although the Court was inclined to impose high costs on the authorities, after the Permanent Council assured that all these certificates would be submitted within 15 days, the Court left a warning to the authorities.

The Inspector General of Registration has been directed to issue necessary administrative instructions to avoid any further fruitless litigation.

The petitioner’s counsel argued that the sale certificate from the Debt Recovery Tribunal should have been filed in Book 1 by the authorities.

However, it was alleged that instead of producing the sale certificates as per the order of the Division Bench, the authorities issued a notice demanding stamp duty in excess of Rs. 14 crores will be paid for filling the sale certificate in Book-1.

It was argued that under Section 89 of the Registration Act, the authority is required to file the sale certificate issued by a Court in its Book-1 and that there is no mention of payment of stamp duty before such registration.

Noting that the State Permanent Council has failed to respond as to why the stamp duty notice was issued despite the order of the Division Bench directing the registration of sale certificates, Justice Piyush Agrawal ordered the presence of the District Magistrate, Ghaziabad.

Plaintiff’s Lawyer: Astha Misra, Avneesh Tripathi

Click here to read the order