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2017 (8) TMI 1708 - MADRAS HIGH COURTAppellant bound by auction being conducted publicly under SARFAESI Act or not - no reason to believe there is willful under valuation - initiation of proceedings under Section 47(A) of the Indian Stamp Act - HELD THAT:- The appeal deserves to be allowed on two grounds. Firstly, what is challenged is only a notice issued after a reference made by the Registering Authority under Section 47(A) of the Indian Stamp Act. Under the above said provision once such a reference is made, the Collector shall give notice to the parties giving a reasonable opportunity of being heard - the writ petitioner instead of giving his representation and allowing an order to be passed under Section 47(A) of the Act and if aggrieved, challenging it before the forum provided under the Statute, ought not to have filed the writ petition. Hence, we are of the view that the writ petition so filed is not maintainable. What has to be considered by an authority under Stamp Act is fixation of the value of an instrument on the basis of the market value of the property on the date on which the document was presented. Therefore it cannot be construed that such an authority would be diluted of his power in all the sales conducted publicly. The Registration Act mandates a separate Role being the duties assigned to a Registering Authority among others. Unless a Statute provides for such an exercise, Court cannot issue directions to accept the value fixed in an instrument merely because the sale was effected in pursuance of an open auction - the property must be sold by Public auction only by a civil or Revenue Court, or a collector or other revenue Officer. Therefore, even assuming a property sold by Public auction, such an exercise is to be done by a civil or revenue Court, Collector or Revenue officers as the case may be. Now the question for consideration is as to whether the authorised officer appointed by the bank in a proceedings initiated under SARFAESI Act, by itself could be called as a civil or revenue Court Collector or Revenue Officer. The answer will have to be a firm 'No'. Only an officer of the bank, which lend money to the borrowers, acts as an authorised officer, only for the purpose of bringing the property for sale. In other words such officers merely replace the secured creditors. Hence at best they can be termed as an agent of secured creditors. In other words the secured creditors cannot be termed as Collector or Revenue Officers. The SARFARESI Act merely provides for a mechanism. The lender uses the said mechanism to recover the money. Therefore it is only a mode of recovery. Lender can termed itself to a Civil or Revenue Court who's functions are purely judicial. Therefore, looking from any perspective, there are no error in the notice issued - appeal allowed.
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