When an auction purchaser derives title on confirmation of sale in his favour, and a sale certificate is issued evidencing such sale and title, no further deed of transfer from the court is contemplated or required & it does not required registration u/s 17(2)(xii) of the Registration Act – Nitin Garg Suspended Director of Corporate Debtor Vs. State Bank of India Member of CoC – NCLAT New Delhi
In this case, the bank took the possession of the property on 27.08.2019. On 24.10.2019 e-auction sale of the subject property was conducted and on 30.12.2019 Sale Certificate was issued in favour of Respondent No. 3 by State Bank of India (Respondent No. 1) under Rule 9(6), SARFAESI Rules and on 24.01.2020 the application under Section 9 of IBC was admitted.
The Appellate Tribunal held that in view of the Judgement of the Hon’ble Supreme Court reported in the case of B. Arvind Kumar vs. Govt. of India and Others, reported in 2007 Volume 5 Supreme Court Cases 745, wherein, the Hon’ble Supreme Court has held when a property is sold by public auction in pursuance of an order of the court and the bid is accepted and the sale is confirmed by the court in favour of the purchaser, the sale become absolute and the title vests in the purchaser. A sale certificate is issued to the purchaser only when the sale becomes absolute. The sale certificate is merely an evidence of such title. It is well settled that when an auction purchaser derives title on confirmation of sale in his favour, and a sale certificate is issued evidencing such sale and title, no further deed of transfer from the court is contemplated or required. Further, it does not required registration under Section 17(2) (xii) of the Registration Act.