DRT sale certificate effect on revenue records: purchaser's registration free of encumbrances confirmed, salestax charge removed subject to further court orders

A DRT-confirmed auction sale and registered sale deed require removal of statutory charges from revenue records; the Talathi was directed to delete the Sales Tax entry from the 7/12 extract and record the purchaser's name free of encumbrances, and the writ was allowed accordingly. The Tahsildar found the sale certificate duly registered and rejected the Sales Tax Department's complaint, leaving any remedy to a civil court; consequently, continued recording of the Sales Tax charge was impermissible. The revenue entry in favour of the purchaser is subject to any future orders by courts of competent jurisdiction.

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Issues: Whether the petitioner, as an auction-purchaser under a confirmed DRT sale, is entitled to deletion of entries recording encumbrances of the Sales Tax/State Tax Authorities from the 7/12 extract and registration of the petitioner's title without such encumbrances.

Analysis: The challenge relates solely to prayer (a) seeking removal of recorded encumbrances from revenue records in respect of land purchased in a DRT auction. The DRT issued a sale certificate in favour of the petitioner, confirmed the sale and by its communication directed the Talathi to remove charges of the Sales Tax and State Tax Departments from the 7/12 extract. The Tahsildar rejected the objection filed by the Sales Tax Department and confirmed the mutation entry; that order was not challenged. The Revenue continued to record the purported tax charges in the 'other rights' column despite the unchallenged DRT direction and the Tahsildar's order. The petitioner's purchase followed due process, the sale certificate was registered, and there was no registration of any statutory charge with the Central Registry (CERSAI) prior to the auction. In these circumstances, the direction of the competent forum to remove encumbrances and register the purchaser's title without charges must be given effect to, subject to any orders that may be passed by courts of competent jurisdiction.

Conclusion: The petition is allowed to the extent of prayer (a); the entries recording encumbrances of the Sales Tax and State Tax Authorities shall be removed from the 7/12 extract and the petitioner's title shall be registered without such encumbrances. Relief under prayer (b) is left open.

Ratio Decidendi: A confirmed auction sale under the DRT with a registered sale certificate and an unchallenged direction to remove charges requires removal of revenue-record entries of statutory tax encumbrances so as to give effect to the DRT's order; recorded tax charges not registered prior to the auction do not bind a bona fide auction purchaser.

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