Delhi High Court - Orders
M/S Sukh Sagar Agro Industries vs Jm Financial Asset Reconstruction ... on 31 October, 2025
$~57
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 16550/2025
M/S SUKH SAGAR AGRO INDUSTRIES .....Petitioner
Through: Ms. Pratiti Rungta, Advocates
versus
JM FINANCIAL ASSET RECONSTRUCTION COMPANY LTD
AND ORS .....Respondents
Through: Mr. Nitin Kumar, Panel Counsel
Advocate
CORAM:
HON'BLE MR. JUSTICE ANISH DAYAL
ORDER
% 31.10.2025
1. This petition has been filed seeking appropriate directions to respondent nos.1, 2 & 3 arising out of sale proceedings conducted under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI), whereby the petitioner was the auction purchaser, having been declared as the highest bidder and having depositing the amount of Rs. 40,55,000/- to respondent no.1, and beneficiary of a Sale Certificate issued under Rule 9(6) of the Security Interest (Enforcement) Rules 2002.
2. The grievance, however, arises from the inaction/omission of respondent no.1 (Asset Reconstruction Company) in not forwarding the said sale certificate to respondent no.2 and 3.
3. As per the counsel for petitioner, once the Sale Certificate is This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/11/2025 at 23:29:28 forwarded to respondent no.2 and 3, they are required to register the said sale in Book No.1. of their records in terms of Section 89 (4) of the Registration Act 1908.
4. In support of this position in law, counsel for petitioner relies upon the following decisions:
i) Esjaypee Impex (P) Ltd. v. Canara Bank, (2021) 11 SCC 537.
ii) The Inspector General of Registration & Anr. v. G. Madhurambal & Anr. SLP (C) 16949/2022, order dated 11th November 2022.
iii) State of Punjab v. Ferrous Alloy Forgings (P) Ltd. 2024 SCC OnLine SC 3372
iv) Order passed by High Court Of Judicature at Madras in Sri Balaji Fibre v. Inspector General of Registration & Ors and connected matters, W.P.No.415/2023.
5. Counsel for respondent nos. 2 and 3 appears on advance notice and states that they have not received any request from the petitioner in this regard.
6. Considering, the decisions which have been pressed in support by the counsel for petitioner, in particular the Supreme Court's order in Inspector General of Registration (supra) which is noted above, there should be no reason why a duly validated certificate is not forwarded to the registering authorities to be filed in Book-1 as per Section 89 of the Registration Act 1908. The Supreme Court has made a stern observation as to why this process and its fructification is denied to successful auction purchasers, as is evident from the extract below:
"Learned counsel for the petitioner(s) has made a valiant endeavor to persuade us to interfere with the impugned This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/11/2025 at 23:29:28 judgment(s) but not successfully. It is logically so as this issue has been repeatedly settled and if one may say, a consistent view followed for the last 150 years. We may refer to the judgments by the Madras High Court in the Board of Revenue No.2 of 1875 (In Re: Case Referred) dated 19.10.1875 opining that a certificate of sale cannot be regarded as a conveyance subject to stamp duty, by the Allahabad High Court in Adit Ram v. Masarat-un- Nissa1 opining that a sale certificate is not an instrument of the kind mentioned in clause (b) of Section 17 of Act III of 1877 and is not compulsorily registrable and this Court's view in Esjaypee Impex Pvt. Ltd. v. Asst. General Manager and Authorised Officer, Canara Bank2 opining that the mandate of law in terms of Section 17(2)(xii) read with Section 89(4) of the Registration Act, 1908 only required the Authorised Officer of the Bank under the SARFAESI Act to hand over the duly validated Sale Certificate to the Auction Purchase with a copy forwarded to the Registering Authorities to be filed in Book I as per Section 89 of the Registration Act and order of this Court in M.A. No.19262/2021 in SLP(C) No.29752/2019 dated 29.10.2021 opining that once a direction is issued for the duly validated certificate to be issued to the auction purchaser with a copy forwarded to the registering authorities to be filed in Book I as per Section 89 of the Registration Act, it has the same effect as registration and obviates the requirement of any further action.
It is time that the authorities stop filing unnecessary special leave petitions only with the objective of attaining some kind of a final dismissal from this Court every time. Costs this time has been spared but will not be spared the next time."
(emphasis added)
7. The petition is disposed of with directions to respondent no. 1 to forward the Sale Certificate to respondent nos. 2 and 3 for taking a decision This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/11/2025 at 23:29:28 regarding the recording of the registration of the sale in Book No.1, as prayed by petitioner.
8. The petitioner is at liberty to place a request before respondent nos.1,2 and 3 along with a copy of this order, in order that the request be complied with expeditiously; the process to be completed within a period of four weeks in all.
9. Considering that, as per petitioner, a similar matter being W.P (C) 7181/2025, is listed o on 21st November 2025, list this matter also for 'compliance' on 21st November 2025.
10. Order be uploaded on the website of this Court.
ANISH DAYAL, J OCTOBER 31, 2025/RK/tk This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/11/2025 at 23:29:28