• Property registration process in Karnataka for property bought under Sarfaesi Act 2002

I have bought a property through the public auction by the bank on October 2021, in Udupi Dist in Karnataka.
Bank has issued sale certificate to me and released the property documents.

The property comprises 5 cents(out of 12cents) commercial converted land and has a conversion order from the respective department. However, the property doesn't have Form 9 and 11 registered. 

Currently, the sub-registrar is denying to register the sale certificate and the property doesn't have the Form 9 and 11 registered for the same property.

I needed the following clarifications:
1. How I can register the sale certificate issued by Bank?

2. If Form 9 and 11 is mandatory then how I can register for Form 9 and 11 for the same property? (The previous owner is not cooperative in availing this).

3. If Form 9 and 11 got it registered in the name of the previous owner, can it be transferred to my name?
Asked 4 years ago in Property Law
Religion: Hindu

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8 Answers

1. You have to obtain a digitised "A" Khata ( Form-9 generated using the e-swathu software ) from the respective Village Panchayat.

2.  To obtain "A" Khata for the sites formed, the conditions are (a) the land should have been converted and (b) the layout plan approval should be there.

3.  The Department of Stamps and Registration department has made it mandatory that only "A" Khata gramatana or revenue properties should be registered.

4.  After obtaining all the documents needed for registration and still the Sub Registrar's Office is denying your sale certificate registration, approach the jurisdictional District Registrar.

Shashidhar S. Sastry
Advocate, Bangalore
5624 Answers
339 Consultations

The Certificate of Sale does not require registration. But, if it is presented for registration, it has to be duly stamped under Article 23 of the Indian Stamp Act, 1899.

2) 

AIR 2013 MAD 73 [Dr.Meera Thinakaran Vs. State of Tamil Nadu & two others], wherein it has been held as follows:-

 

20.Now, coming to the next contention of the learned counsel that the Recovery Officer appointed under the Recovery of Debts due to Banks and Financial Institutions Act cannot be construed as a Revenue Officer as contemplated in Article 18 of the Indian Stamps Act needs to be considered. A similar question arose before a Division Bench of this Court as to whether the Sale Certificate issued by the Recovery Officer under the SARFAESI Act will fall within the ambit of Article 18of the Indian Stamps Act. The Division Bench in K.Chidambara Manickam Vs. Shakeena and Ors, reported in AIR 2008 Madras 108 has clearly held that such a Sale Certificate issued by the Recovery Officer under SARFAESI Act would squarely fall within the ambit of Article 18 of the Indian Stamps Act. In view of the said law laid down by the Division Bench, the argument of the learned Advocate General deserves only to be rejected. Thus, I hold that the Recovery Officer under Recovery of Debts due to Banks and Financial Institutions Act will fall within the meaning of a Revenue Officer as enumerated under Article 18 of the Indian Stamp Act. Thus, a Certificate of Sale issued by him will squarely fall within the said provision..

 

4)SC has held registration of sale certificate as per section 17(2)(xii) of the RegistrationAct is not mandatory for the completion of the sale pursuant to the public auction and issuance of the sale certificate under the scheme of the SARFAESI Act.

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

You need to hold bank responsible for the same and make it a party. You can also file complaint before consumer court for deficiency of service in the same against bank

Prashant Nayak
Advocate, Mumbai
34515 Answers
249 Consultations

1. The bank as the seller has to execute the sale deed in your favor. 

2. You may have to approach concerned revenue department to transfer the 9 11 records to your name by producing the relevant sale certificate issued by bank. 

3. Since you are the current owner you are entitled to get it transferred to your name. 

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

1. Sale Certificate issued by Auctioning Bank is Final & Irrefutable. Bank Authority is solely authorized to appear & Register the Sale Certificate and all related forms /documents /formalities.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

It is the responsibility of the bank squarely to register the property sold under the Sarfaesi Act to you the purchaser by providing all the necessary documents as called for by the Sub-Registrar. You need not run after the previous owner. Send a legal notice to the bank to comply and register the property before the deadline prescribed. If they do not, ask for refund of the money paid.

Swaminathan Neelakantan
Advocate, Coimbatore
3070 Answers
20 Consultations

- A Sale certificate is issued to a buyer when he purchases an auctioned property.

- Further, this certificate entitles the buyer to receive the title deed.

- Further, it is necessary to register the sale certificate with the Sub Registrar’s Office  after paying the stamp duty and registration fee for registering.

- However, as per Madras High Court , under Section 89(4) of the Registration Act, 1908.Auction purchasers of immovable property need not pay registration fees or pay stamp duty when filing a copy of sale certificate.

- You can enquire from the bank for the said Form 9 and 11 as required by the registrar , as it is the duty of the bank to provide the same. 

- Further , after submitting the said sale certificate you can apply before the Revenue department for issuing the said forms in your name. 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Dear client,

1.  The certificate of sale is issued to a buyer when she purchases a foreclosed property. Although it doesn't signify the buyer's ownership of the property, a certificate of sale entitles the buyer to receive the title or deed. The Certificate of Sale does not require registration. But, if it is presented for registration, it has to be duly stamped under Article 23 of the Indian Stamp Act, 1899.

2.  You can apply for Forms 9 and 11 at the Gram Panchayat Office that the property is a part of. You will need approvals from the Panchayat Development Officer and Gram Panchayat Secretary for the forms to be verified and issued.

3. You need to submit Ownership documents and Conversion Order issued by the Revenue Department OR ownership documents and Plan Approval issued by the relevant Urban Development Department with your identity documents to Gram panchayat office.

Thank You.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

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