# In the matter of The State of Punjab & Anr. vs. Ferrous Alloy Forgings P Ltd.. & Ors.

> SC judgment dated 2024-11-19. Citation: TCN-2024-SC-00012. The case involves a dispute over stamp duty on a sale certificate issued following a court-ordered…

- **Court:** SC
- **Order date:** 19 Nov 2024
- **Citation:** TCN-2024-SC-00012
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/the-state-of-punjab-anr-vs-ferrous-alloy-forgings-p-ltd-ors-9b46553b

## Summary

### Background

The case involves a dispute over stamp duty on a sale certificate issued following a court-ordered auction. Punjab United Forge Limited was ordered to be wound up, and the Industrial Finance Corporation of India (IFCI) was granted permission to sell the mortgaged properties. M/s Ferrous Alloy Forging Pvt. Limited, a sister concern of Respondent No.1, won the auction. Respondent No.1 applied for execution of the conveyance deed, which was initially declined. The High Court later allowed an appeal, leading to further disputes regarding stamp duty on the sale certificate.

## Facts

Punjab United Forge Limited was ordered to be wound up by the High Court. The Industrial Finance Corporation of India (IFCI) was permitted to sell the company's mortgaged properties. M/s Ferrous Alloy Forging Pvt. Limited, a sister concern of Respondent No.1, won the auction. Respondent No.1 applied for execution of the conveyance deed, claiming full payment and common directors with its sister concern. The Company Judge of the High Court declined the request, but a Division Bench allowed an appeal on 1997-10-22. Respondent No.1 then applied for a sale certificate under Order XXI Rule 94 of the CPC. The Company Judge directed Respondent No.1 to pay stamp duty on the immovable properties. The Registrar directed payment of Rs. 2.25 crore as stamp duty. Respondent No.1

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## Issues and analysis

### Issue 1: Whether it is mandatory for the successful auction purchaser to deposit the stamp duty for the sale …

**Ratio:** A sale certificate issued to the purchaser in pursuance of the confirmation of an auction

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**Reasoning:** The Court relied on precedents such as Municipal Corporation of Delhi v. Pramod Kumar

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**Interpretation:** Section 17(2)(xii) of the Registration Act, 1908 specifically provides that a

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**Application:** In this case, the High Court correctly directed that the original sale

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## Parties

- **Judges:** J.B. PARD…; R. MAHA…
- **Appellants:** THE STATE OF…
- **Respondents:** Punjab United…; M/S FERROUS ALLOY…
- **Other parties:** Affir…

## Timeline

- **2013-11-28 — High Court J…**: The High Court of Punjab and Haryana passed a judgment and order in C.W.P. No.11055/2001,…
- **1997-10-22 — Division Benc…**: A Division Bench of the High Court…

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