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Anshul Gupta (IT)     23 October 2022

Registry of bank auction property based on sale certificate


Party A is bank defaulter and bank auctions property which is bought by Party B.

Bank issues sale certificate to Party B.

Now Party B does not register that sale certificate with sub-registrar office and sells property to Party C.

Can Party C purchase, and register the property in his name ?



1. If yes, will bank become authorized seller here or Party B, I guess bank, as Party B still does not hold the clear title.

2. Will bank decline to perform registry, because as per their record Party B not C is purchaser.

3. Will sub-registrar office decline registry as Party B is 2nd owner in the chain without the registry (and they’re losing the stamp duty).

4. Will sub-registrar claim that, there were 3 owners of the property hence expect stamp duty 3 times, however if Party C registers directly then they get only 2 times.

5. Any other provision of the law or the SARFAESI act, that prevents the registry in this case ?


 4 Replies

P. Venu (Advocate)     23 October 2022

Has the sale certificate been duly entered in Book No. I in terms of the provisions of Section 89(4) of the Registration Act?

kavksatyanarayana (subregistrar/supdt.(retired))     23 October 2022

Yes.  Did the bank send a copy of the sale certificate (auctioned by B) to the Sub Registrar concerned to enter the entry in Book-I under Sec.89(4)?

Anshul Gupta (IT)     23 October 2022

Thank you P.Venu and Kavksatnarayana

Yes they have sent a copy to registration office for entry in Book No. 1 under Section 89(4) of the Registration Act

But Party B have not paid any stamp duty

1. Will it make Party B the title owners, just by getting above sale certificate entered in Book No. 1 ?

2. Who will get the registry done in the name of Party C, will it be bank or Party B ?

Are any of you based our of Gurgaon, would like to purchase your services.

P. Venu (Advocate)     24 October 2022

In this context, the Supreme Court has held in the case of Esjaypee Impex Private Limited Vs. Assistant General Manager and Authorised Officer, Canara:

“16.We are of the view that the mandate of law in terms of Section 17(2)(xii) read with Section 89(4) of the Registration Act, 1908 only required the authorised officer of the Bank under the SARFAESI Act to hand over the duly validated sale certificate to the auction-purchaser with a copy forwarded to the registering authorities to be filed in Book I as per Section 89 of the Registration Act.”

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