Legal Question in Banking Law in India

A purchaser of property in SARFAESI Act is insisting that apart from the sale certificate as per the Act, the Bank should also execute and register a sale deed in his favour. He is requesting that the sale certificate need not be stamped advalorem and the sale deed alone need be stamped and the sale deed alone need be registered. Kindly advice whether the Bank is bound to comply with the request as the SARFAESI act provides only for execution of sale certificate and does not state anything regarding execution of sale deed. Further will the non regisration of the sale certificate confer a good title on the purchaser.


Asked on 8/25/09, 11:43 pm

3 Answers from Attorneys
Pawan Jangid

Sale certificate will be stamped ad valorem and will confer a valid and marketiable title over the property.

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Answered on 8/26/09, 3:34 am
J. Radhakrishnan independent Practice

The rules under the SARFAESI Act contemplate issue of Sale Certificate in Form Appendix V. But is silent on stamp duty and registration. Article 18 of Schedule I of the Stamp Act (as amended by Tamil Nadu) speaks of Certificate of Sale which has to be stamped as a conveyance falling under Art.23. Thus the stamp duty is as per sale deed. The same should also be registered with the Registrar of Assurances by the authorized officer who issues the sale certificate. It is quite possible that a court may refuse to admit the unstamped/unregistered sale certificate as evidence of title.

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Answered on 8/26/09, 8:44 am
Pravin Vaidya Independent

I fully agree with J. Radhakrishnan

Pravin Vaidya

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Answered on 10/12/09, 7:55 am


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