# In the matter of Chirag & Company Pvt. Limited vs. Additional Deputy Commissioner-cum-Collector Shaheed Bhagat Singh Nagar, Punjab and others CWP No. 12818 of 2022

> HC judgment dated 2023-03-23. Citation: TCN-2023-HC-00073. The petitioner sought to quash a letter and order directing them to pay a deficiency in stamp duty…

- **Court:** HC
- **Order date:** 23 Mar 2023
- **Citation:** TCN-2023-HC-00073
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/chirag-company-pvt-limited-vs-additional-deputy-commissioner-cum-collector-shahe-fc1cd142

## Summary

### Background

The petitioner sought to quash a letter and order directing them to pay a deficiency in stamp duty of ₹51,95,243. The petitioner was the successful bidder in a court auction conducted by the Official Liquidator after M/s Montari Industries Ltd. was ordered to be wound up. A sale deed was executed, and stamp duty was paid. However, the Sub-Registrar referred the matter to the Additional Deputy Commissioner, citing a deficiency in stamp duty under Section 47-A of the Indian Stamps Act, 1899. The petitioner argued that Section 47-A doesn't apply to court-ordered auction sales.

## Facts

On 2015-08-14, M/s Montari Industries Ltd. was ordered to be wound up by the High Court in Company Petition No. 83 of 2010, and an Official Liquidator was appointed. A sale notice was published on 2016-12-28 in the Indian Express for the sale of the company's movable and immovable properties. The petitioner was the successful bidder. The Official Liquidator filed Company Application No. 35 of 2017 in the High Court seeking confirmation of the sale, which was allowed on 2017-06-02. The petitioner received a letter on 2021-02-09 from the Official Liquidator to complete the formalities for executing the sale deed. The sale deed was executed on 2021-04-12, and stamp duty of ₹33,13,200/- was paid on 2021-04-07 for a sale consideration of ₹5,52,20,000/-. The Sub-Registrar

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## Issues and analysis

### Issue 1: Whether Section 47-A of the Indian Stamp Act, 1899, can be invoked in the case of auction sales …

**Ratio:** Section 47-A of the Act is intended to address cases where parties deliberately

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**Reasoning:** The court reasoned that public auctions conducted under court supervision are transparent

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**Interpretation:** Section 47-A of the Indian Stamp Act, 1899, is interpreted as a provision aimed

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**Application:** In this case, the property was sold through a public auction conducted by the

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## Parties

- **Judges:** Jaishree…
- **Appellants:** M/s Chirag &…
- **Respondents:** M/s Montari…; Additional Deputy…
- **Other parties:** Kohi…

## Timeline

- **2015-08-14 — Winding Up…**: M/s Montari Industries Ltd. was ordered…
- **2016-12-28 — Sale Not…**: A sale notice was published in the Indian Express for the sale of the company's…

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