Authority: Supreme Court of India, Civil Appellate Jurisdiction

Order Date: August 24, 2026

Case Overview

  • Parties: Inspector General of Registration (Appellant) vs. Kovai Medical Center and Hospital Limited and others (Respondents).
  • Background: A bank, under the SARFAESI Act, initiated proceedings against properties in Meelavittan Village, Thoothukudi, Tamil Nadu. Respondents 1 & 3 won the e‑auction, paying Rs 6,22,00,000 and Rs 1,50,00,000 respectively.
  • On 1 Oct 2024 the bank issued sale certificates in favour of the respondents; the Sub‑Registrar registered them as Document Nos.4411 and 4412 on 3 Oct 2024 after the respondents paid 7% stamp duty and 4% registration charges on the auction price.
  • The Sub‑Registrar later referred the matter to the Special Deputy Collector (Stamps) on 7 Oct 2024, invoking Section 47A of the Indian Stamp Act and Circular No.30437/E3/2019, which stated that a sale certificate issued by the authorised officer is liable for stamp duty on market value.
  • Respondents were asked to pay additional duty; they contested, filing writ petitions (W.P.(MD) Nos.25561 & 25562 of 2024) seeking release of the certificates and refund of excess stamp duty of Rs 31,10,000 and Rs 7,50,000.
  • The Single Judge of the High Court (29 Oct 2024) set aside the stamp‑duty proceedings and ordered refund of the excess amounts. The Division Bench upheld this order on 12 Jun 2025.
  • The appellants appealed (W.A.(MD) Nos.2737 & 2738 of 2024) but the Supreme Court, on 18 Dec 2025, did not stay the High Court judgment; the judgment remains binding.
  • Despite the High Court orders, the Sub‑Registrar continued to withhold the registered sale certificates, and the encumbrance certificate still bears an endorsement of enquiry under Section 47A(1) of the Stamp Act.

Final Outcome

  • The Supreme Court, hearing IA No.155944 of 2026, allowed the application and directed the appellant (Inspector General of Registration) to release the registered sale certificates (Document Nos.4411 and 4412 of 2024) to the respondents within four weeks from the date of the order.
  • The release is subject to the final outcome of the pending appeals; no stay was granted on the High Court judgment.
  • The matter is listed for expedited hearing in January 2027.

Topics: Stamp Duty, Property Registration