# In the matter of M/s. Anirudh Agro Farms Pvt. Ltd. Vs. The State of Telangana & Ors. Writ Appeal No.414 of 2023

> HC judgment dated 2023-04-04. Citation: TCN-2023-HC-00068. The case involves an appeal against an order by a Single Judge, who rejected an interlocutory…

- **Court:** HC
- **Order date:** 4 Apr 2023
- **Citation:** TCN-2023-HC-00068
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/ms-anirudh-agro-farms-pvt-ltd-vs-the-state-of-telangana-ors-writ-appeal-no414-of-1f024cf3

## Summary

### Background

The case involves an appeal against an order by a Single Judge, who rejected an interlocutory application seeking interim relief. The corporate debtor, Priyadarshini Spinning Mills Limited, defaulted on dues, leading to Corporate Insolvency Resolution Process (CIRP) initiated by the corporate creditor under the Insolvency and Bankruptcy Code (IBC). NCLT initiated CIRP proceedings, and a liquidator was appointed. The liquidator issued an e-auction sale notice, where the appellant emerged as the highest bidder, deposited the bid amount, and received a sale certificate. The Sub-Registrar (respondent No. 4) declined to record the sale certificate, citing no practice of filing such certificates and potential stamp duty implications. This led to the writ petition and the

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## Facts

Priyadarshini Spinning Mills Limited defaulted on dues to a corporate creditor, leading to the initiation of Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC). NCLT initiated CIRP proceedings, and a liquidator was appointed. The liquidator issued an e-auction sale notice for the corporate debtor's fixed assets. The appellant participated in the e-auction and emerged as the highest bidder, depositing Rs.49,92,08,000.00. The liquidator issued a sale certificate dated 25.10.2021 to the appellant under Section 35(1)(f) of IBC. The Sub-Registrar/respondent No. 4 refused to record the sale certificate, citing no practice of filing such certificates and potential stamp duty implications under Article 47-A of the Indian Stamp Act,

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## Issues and analysis

### Issue 1: Whether the Sub-Registrar is justified in refusing to record the sale certificate without payment …

**Ratio:** A sale certificate under Section 89 of the Registration Act has the same effect as

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**Reasoning:** The court relied on a Supreme Court order in Inspector General of Registration v.

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**Interpretation:** The interpretation is that once a duly validated sale certificate is issued to

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**Application:** The court applied this principle by directing the Sub-Registrar (respondent No.

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## Parties

- **Judges:** UJJAL B…; N.Tukar…
- **Appellants:** Avinash…
- **Respondents:** Priyadarshini…; A Chan…

## Timeline

- **2019-09-03 — NCLT initiat…**: NCLT initiated Corporate Insolvency Resolution Process (CIRP) proceedings against the…
- **2021-04-26 — Liquidator Ap…**: Respondent No. 5 was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 35(1) — Powers and duties of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-35)

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