1990 (12) TMI 339 - SC - Indian Laws

Summary

Issues:
1. Whether duty is payable under Section 147 of the Delhi Municipal Corporation Act on a sale certificate issued by the civil court under Order XXI, Rule 94 CPC.

Analysis:
The judgment deals with the question of whether duty is payable under Section 147 of the Delhi Municipal Corporation Act on a sale certificate issued by the civil court under Order XXI, Rule 94 CPC. The property in question was auctioned in execution of a decree and purchased by the respondent. The High Court directed the issuance of the Sale Certificate under Rule 94, CPC, and the respondent contended that no duty was chargeable under Section 147 of the Act. The petitioner, Municipal Corporation of Delhi, challenged this decision. The key issue was whether a Certificate issued by a Court under Rule 94 of Order XXI can be considered an instrument of sale to attract the provisions of Section 147 of the Act.

The Court analyzed the provisions of Section 147 of the Act, which levies duty on transfers of immovable property. The duty is payable on every instrument of sale of immovable property. The Court examined the definition of the term "instrument" in Section 147, which refers to any document effecting transfer of rights. It was emphasized that a document merely recording a fact or evidence of a concluded transaction cannot be considered an instrument of sale. The Court highlighted that the title to the property must be conveyed under the document for it to be classified as an instrument of sale.

Further, the Court delved into the relevant provisions of Order XXI of the CPC, which govern auction sales of property. It was noted that the title to the property passes when the sale is held, and a Certificate of sale is issued after the sale becomes absolute under Rule 92. The Court clarified that the Certificate issued under Rule 94 is a formal declaration of the sale's effect, not a creation or extinguishment of title. The purpose of the Certificate is to confirm the identity of the property sold and the purchaser. The Court concluded that the Certificate cannot be considered an instrument of sale to attract Section 147 of the Act, and thus dismissed the appeal.

In conclusion, the judgment clarifies the scope of duty payable under Section 147 of the Delhi Municipal Corporation Act concerning sale certificates issued by civil courts. It provides a detailed analysis of the legal provisions and the nature of the Certificate issued under Rule 94 of Order XXI, CPC, ultimately determining that such a Certificate does not fall within the definition of an instrument of sale to attract duty under the Act.