Sale certificate in SARFAESI auction need not be registered where statutory exception under the Registration Act applies.

A sale certificate issued to an auction purchaser under a SARFAESI auction falls within the statutory exception in Section 17(2)(xii) of the Registration Act, 1908. Although Section 17(1) generally requires registration of instruments creating or affecting rights in immovable property, a certificate of sale granted on a public auction evidences title acquired on confirmation of sale and does not contemplate any further deed of transfer. The court therefore held that such a sale certificate did not require registration, and a direction insisting on registration was unsustainable.

---

---

Issues: Whether a sale certificate issued to an auction purchaser under a SARFAESI auction requires registration under the Registration Act, 1908.

Analysis: Section 17(1) of the Registration Act, 1908 mandates registration of documents creating or affecting rights in immovable property, but Section 17(2)(xii) carves out an exception for a certificate of sale granted to the purchaser of property sold by public auction by a Civil or Revenue Officer. The sale certificate issued in favour of an auction purchaser evidences title acquired on confirmation of sale, and no further deed of transfer is contemplated. The petitioner's purchase through auction was therefore covered by the statutory exception.

Conclusion: The sale certificate did not require registration, and the direction calling upon the petitioner to register it was unsustainable. The writ petition was allowed and the impugned communication was quashed.

---