Khush Housing Finance Pvt. Ltd. Vs State of Maharashtra (Bombay High Court)
The Bombay High Court considered the petition in continuation of its order dated 13.01.2026. The learned Additional Government Pleader did not dispute the legal position laid down by the Supreme Court in State of Punjab and Anr. Vs. Ferrous Alloy Forgings P. Ltd. And Ors., which interpreted Section 89(4) of the Indian Registration Act, 1908 in relation to sale certificates issued upon confirmation of auction sales. The Court also noted that the said Supreme Court decision had been relied upon by a Division Bench of the Bombay High Court in Vishal Laxman Arkal Vs. Inspector General of Registration and Ors., and the State requested the Court to pass an appropriate order.
After hearing the petitioner, the High Court observed that the Supreme Court had already determined the precise issue of whether a successful auction purchaser is required to deposit stamp duty before issuance of a sale certificate under the Stamp Act and the Registration Act. Referring to the Supreme Court’s observations, the High Court noted that a sale certificate issued upon confirmation of an auction sale is merely evidence of title, does not require registration under Section 17(1) of the Registration Act, and that title passes upon successful completion and confirmation of the auction sale. It further noted that mere filing of a copy of the sale certificate under Section 89(4) of the Registration Act is sufficient and that stamp duty under Articles 18 and 23 of the First Schedule to the Stamp Act arises only when the auction purchaser presents the original sale certificate for registration or uses it for another purpose.
