Authority: High Court of Judicature at Bombay

Order Date: September 30, 2026

Case Overview

  • Parties: Rohstoffe International Pvt. Ltd. (Applicant/Auction Purchaser), Official Liquidator of Sonal Garments India Pvt. Ltd. (Respondent), Collector, Mumbai & Ors. (State of Maharashtra, Respondents), Mittal Court Premises Co‑operative Society Ltd. (Society, Respondent). Advocates: Vishal Kanade (for Rohstoffe), Amar Mishra (AGP for State), Mohit Khanna (for Society), Gaurav Aswani (for Official Liquidator).
  • Background: Sonal Garments India Pvt. Ltd. was ordered wound up on 16‑Apr‑2012. The Official Liquidator, under Company Court supervision, auctioned Office Unit No. 134‑A, Mittal Court, Nariman Point, Mumbai. The Company Court approved the transfer on 10‑Oct‑2018 at an Auction Purchase Value of Rs 2,65,00,000/‑.
  • Government Resolution dated 7‑Jul‑2017 (2017 GR) mandates transfer premium to be the higher of Rs 2,000 per sq ft or 6 % of the Ready Reckoner Value (RRV). The RRV for the unit is Rs 5,93,26,567/‑, yielding a premium claim of Rs 35,59,600/‑ (rounded). The State also claimed Rs 3,69,100/‑ for a past transfer and mortgage, issuing a notice on 27‑Nov‑2019 demanding Rs 39,26,700/‑ for a No‑Objection Certificate.
  • Interim Order (27‑Jul‑2020) directed the Auction Purchaser to pay Rs 35,59,600/‑ to the Collector, with a conditional refund of Rs 19,69,600/‑ if the final decision favored the Purchaser, and to pay Rs 6,39,920/‑ to the Society (including Rs 3,92,515/‑ for a common amenity fund). The parties complied; the Purchaser later sold the unit.
  • Legal Issues: (A) Whether the State may charge any transfer premium on a unit in a building on State‑leased land; (B) Whether the premium base is the RRV or the Auction Purchase Value; (C) Whether the Society’s common amenity fund charge is payable by the Purchaser.
  • Authorities relied upon: Section 37A of the Maharashtra Land Revenue Code (MLRC), the 2017 GR, the Maharashtra Stamp (Determination of True Market Value of Property) Rules, 1995 (Market Value Rules), and case law including Aspi Chinoy (2009), Bulchandani (13‑Jul‑2026), Hindustan Unilever (3‑May‑2018), Pinak Bharat (17‑Mar‑2025), Bharat Bijlee (28‑Aug‑2002), Transpower (26‑Jul‑2018), ASL Vyapar (2024), and others.
  • The Court examined the statutory framework, noting that Section 37A(1) requires State permission for any transfer of Government land, and Section 37A(2) permits the State to levy a premium. The 2017 GR, issued under the power of Section 37A, expressly adopts the Ready Reckoner Value (derived from the annual statement of rates under the Market Value Rules) as the market value for premium calculation.
  • The Court considered whether the auction‑determined price could supplant the Ready Reckoner Value for premium purposes. It concluded that, although the Ready Reckoner is the default metric, the statutory silence in the 2017 GR regarding auction‑derived values must be filled by applying the policy of Rule 4(6) of the Market Value Rules, which treats a value determined by an authority (such as a Court‑monitored auction) as the “true market value”.
  • Regarding the Society’s claim, the Court examined Bye‑law D.3.5 and a resolution dated 11‑Nov‑1994, finding the common amenity fund charge legitimate under the Maharashtra Co‑operative Societies Act, and that the auction terms (Clause 14) make the purchaser liable for outgoings accruing after sale confirmation.

Final Outcome

  • The State is affirmed to have the right to levy a transfer premium on the Office Unit.
  • The premium must be calculated on the Auction Purchase Value of Rs 2,65,00,000/‑, applying the higher of Rs 2,000 per sq ft or 6 % of that value. Any premium paid in excess of this amount (i.e., the difference between the Rs 35,59,600/‑ previously paid and the recomputed premium) shall be refunded to Rohstoffe International with interest at 6 % per annum from the date of deposit, payable within eight weeks of the judgment’s upload on the Court’s website.
  • The Society’s claim of Rs 3,92,515/‑ towards the common amenity fund is upheld as payable by the Auction Purchaser; no refund of this amount is ordered.
  • Any amount the Purchaser may have paid in excess towards past Society dues (already discharged from sale proceeds) shall be refunded by the Society, or if the Society has already transferred it to the Official Liquidator, the Liquidator shall return it to the Purchaser, both with 6 % interest, within eight weeks of the judgment’s upload.
  • IA 2173 is disposed of; no costs are awarded. Pending Interim Applications (L) No. 38937 and (L) No. 39608 of 2024 filed by the State remain listed for directions on 8‑Oct‑2026.

Topics: Transfer Premium, Common Amenity Fund, Court‑Monitored Auction Valuation