The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench on September 09, 2022 in the matter of Smt. Sabita A. Biswa v. Shri Vinodkumar Pukhraj Ambavat held that sale deed which is neither registered nor stamped and executed before Notary cannot be basis for any claim with regard to the purchase of immovable property.

In the instant matter, an appeal was filed against an order NCLT Cuttack Bench (“Adjudicating Authority”) rejecting the claim of Smt. Sabita A. Biswa (“Appellant”), a creditor of the Corporate Debtor in the Corporate Insolvency Resolution Process (“CIRP”) on the ground that the claim observing the alleged sale deed was neither registered nor stamped, and thus cannot be looked for any purpose.

The Bench held that the Adjudicating Authority had rightly taken the view that such kind of sale deed which is neither registered nor stamped and was executed before Notary cannot be basis for any claim with regard to the purchase of immovable property as claimed by the Appellant and thus the appeal was dismissed.