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SUPREME COURT OF INDIA
ASHOK BHUSHAN, R. SUBHASH REDDY, M.R. SHAH, JJ.
M/S. MSD REAL ESTATE LLP – APPELLANT(S)
Vs.
THE COLLECTOR OF STAMPS AND ANOTHER – RESPONDENT(S)
CIVIL APPEAL NO. 3194OF 2020 (ARISING OUT OF SLP(C) NO.7990 OF 2020)
Decided on : 17-09-2020
Stamp Act, 1899 – Section 48 – Gift-Deed – Deficiency in stamp duty – Imposition of penalty – In pursuance of order of Collector Trustees were liable to deposit stamp duty as well as penalty – Although deficiency of stamp duty was deposited through Treasury Challan but penalty was not deposited and only post dated cheques were submitted on behalf of appellant – Facility to deposit penalty by post dated cheques cannot be approved – Appellant being subsequent purchaser was liable to deposit amount of penalty which was outstanding against property and which was subject matter of gift deed – High Court has rightly not interfered with order issued by Addl. Tehsildar(Recovery) demanding outstanding amount – In view of deposit made by appellant towards penalty, appellant is free to apply for building permission which is to be considered by Municipal Corporation. (Paras 16 and 20)
Facts of the case:
Present appeal has been filed against the judgment of High Court of Madhya Pradesh at Indore dated 10.06.2020 by which the writ petition filed by appellant challenging the notice dated 04.06.2020 issued by Additional Tehsildar (Recovery), District Indore as well as notice dated 04.06.2020 issued by Building Officer, Zone No.09, Municipal Corporation Indore has been dismissed.
Findings of Court:
High Court has rightly observed that facility to deposit the penalty by post dated cheques cannot be approved and the appellant being subsequent purchaser was liable to deposit the amount of penalty which was outstanding against the property and which was subject matter of the gift deed dated 21.04.2005.
Result : Appeal disposed of.
JUDGMENT
Ashok Bhushan, J.
Leave granted.
2. This appeal has been filed against the judgment of the High Court of Madhya Pradesh at Indore dated 10.06.2020 by which the writ petition filed by the appellant challenging the notice dated 04.06.2020 issued by Additional Tehsildar (Recovery), District Indore as well as notice dated 04.06.2020 issued by Building Officer, Zone No.09, Municipal Corporation Indore has been dismissed.
3. Brief facts giving rise to this appeal are:
The property in question in this appeal is Lantern Hotel having Municipal No.28, Yeshwant Niwas Road, Indore with regard to which a Deed of Assent was executed on 21.04.2005 by the Trustees of Private Trust, namely, H.C. Dhanda Trust. H.C. Dhanda executed Will dated 26.10.2002. The Collector of Stamps issued notice stating that there is deficiency in the stamp duty on deed dated 21.04.2005 and passed an order dated 22.09.2008 holding the deed to be a Gift Deed and determined a deficiency of stamp duty to the extent of Rs.1,28,09,700/- and imposed penalty of ten times to the tune of Rs.12,80,97,000/-. H.C. Dhanda Trust filed writ petition in the High Court challenging order dated 22.09.2008 which was dismissed on 30.03.2017. An SLP(C) Diary No.30539 of 2017 was filed by the Trustees of H.C. Dhanda Trust against the judgment of the Madhya Pradesh High Court dated 30.03.2017 in which this Court passed following interim order dated 10.11.2017:
"Issue notice, returnable in six weeks, limited to the quantum of penalty that has been imposed by the Collector (Stamps).
Subject to the condition that stamp duty is paid within a period of one month, there shall be stay of the order qua the penalty."
4. The Trustees of H.C. Dhanda Trust could not deposit the stamp duty, this Court made it clear by order dated 22.04.2019 in SLP(C) Diary No.30539 of 2017 that no interim order is operating as on date. An amount of Rs.1,28,09,700/- was deposited through a Treasury Challan dated 07.11.2019 which was the amount of stamp duty on behalf of Jogesh Dhanda son of late Shri H.C. Dhanda.
5. The appellant, M/s. MSD Real Estate LLP by a Registered Sale Deed dated 27.11.2019, purchased the property in question, Lantern Hotel from the Trustees of the Trust of Jogesh Dhanda and Ishan Dhanda. The appellant applied for development permission and vide letter dated 18.11.2019 the appellant was granted permission for construction. Application for mutation was filed by the appellant in the Municipal Corporation. The appellant also deposited Rs.2,92,20,794/- property tax under protest, mutation in the name of the appellant was also made against the property in question.
6. On 20.11.2019 the appellant along with Jogesh Dhanda submitted an application to Collector of Stamps regarding stamp duty and penalty imposed upon Lantern Hotel, Indore situate at Municipal No.28, Yeshwant Niwas Road, Indore. Along with letter the appellant submitted six post dated cheques totaling Rs.12, 80,97,025/-. A notice dated 04.06.2020 was issued by Addl. Tehsildar (Recovery) for depositing an amount of Rs.8,80,97,095/-, outstanding amount towards the penalty. On 04.06.2020 itself another letter was issued by the Office of Municipal Corporation, Indore regarding application received from the appellant for permission of building construction. The application for building permission was rejected by notice dated 04.06.2020. Aggrieved by the aforesaid two notices dated 04.06.2020 Writ Petition No.8145 of 2020 was filed by the appellant. In the writ petition the appellant has challenged notice dated 04.06.2020 issued by the Addl. Tehsildar(Recovery) as well as order dated 04.06.2020 of the Office of Municipal Corporation, Indore. The appellant also prayed for direction to restraint the respondents from giving effect to their impugned orders and from taking any coercive/penal action against the appellant.
7. Learned Single Judge by its order dated 10.06.2020 dismissed the writ petition. Learned Single Judge held that the appellant bein
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