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SUPREME COURT OF INDIA
M.R. Shah, Krishna Murari, JJ.
Kerala Land Reforms & Development Co-operative Society Limited – Appellant
Versus
District Registrar (General) & Another – Respondents
Civil Appeal No. 6588 of 2015 with Civil Appeal No. 6830 of 2022, Civil Appeal Nos.6831-6832 of 2022, Civil Appeal No. 6833 of 2022, Civil Appeal Nos.6834-6836 of 2022, Civil Appeal No. 6837-6838 of 2022
Decided On : 14-10-2022
Stamp Duty - Cooperative Societies - Travancore-cochin Co-operative Societies Act, 1951, Madras Co-operative Societies Act, 1932, Kerala Co-operative Societies Act, 1969 - Section 35, Section 30(2), Section 110, Section 40 - The court held that the benefit of remission of stamp duty is available only in respect of instruments executed by or on behalf of a society or by an officer or member thereof and instrument so executed should be relating to the business of the society. The benefit of remission can be claimed by the society only if, but for such remission, the society, an officer, or the member, as the case may be, would have been liable to pay such stamp duty.
Fact of the Case:
The appellants claimed remission of stamp duty on sale deeds executed by or on behalf of cooperative societies. The Full Bench of the High Court held that the benefit of remission of stamp duty is available only in specific cases, and the appellants were not entitled to the benefit of remission of stamp duty on the instruments/sale deeds in question.
Finding of the Court:
The court found that the appellants were not entitled to the benefit of remission of stamp duty on the instruments/sale deeds in question as they did not meet the criteria specified in the relevant provisions of the Kerala Co-operative Societies Act, 1969.
Issues: The main issue was whether the appellants were entitled to the benefit of remission of stamp duty on the instruments/sale deeds in question under the relevant provisions of the Kerala Co-operative Societies Act, 1969.
Ratio Decidendi: The court held that the benefit of remission of stamp duty is available only in specific cases as per the relevant provisions of the Kerala Co-operative Societies Act, 1969, and the appellants did not meet the criteria for claiming the benefit of remission of stamp duty.
Final Decision: All the appeals were dismissed, and the appellants were not entitled to the benefit of remission of stamp duty on the instruments/sale deeds in question. No order as to costs was made.
JUDGMENT :
M.R. Shah, J.
1. As common questions of law and facts arise in this group of appeals, all these appeals are decided and disposed of together by this common judgment and order.
2. Feeling aggrieved and dissatisfied with the impugned judgment(s) and order(s) passed by the Full Bench of the High Court of Kerala at Ernakulam, by which the Full Bench of the High Court has held that,
i) the benefit of remission of stamp duty is available only in respect of instruments executed by or on behalf of a society or by an officer or member thereof and instrument so executed should be relating to the business of the society; and
ii) the benefit of remission can be claimed by the society only if, but for such remission, the society, an officer, or the member, as the case may be, would have been liable to pay such stamp duty, the Kerala Land Reforms & Development Cooperative Society Limited, Federal House Construction Cooperative Society Limited & Another, N.B.Krishna Kurup and Others, Aluva Town Cooperative Housing Society and the Central Excise & Custom Officers Housing Cooperative Society Limited have preferred the present appeals.
3. The particulars of each appeal(s) are as under:
| ITEM NO. | CASE NUMBER | CAUSE TITLE | APPELLANT(S) | TRANSACTION INVOLVED |
| 101 | C.A. No. 6588/2015 | KERALA LAND REFORMS & DEVELOPMENT COOPERATIVE SOCIETY LTD. VERSUS DISTRICT REGISTRAR (GENERAL) AND ANR | Co-operative Society | Sale deed executed by the ‘A’ Class Members of the Society in favour of the Society. |
| 101.1 | C.A. No. 6830/2022 | KERALA LAND REFORMS VERSUS THE DISTRICT REGISTRAR (GENERAL) AND ANR. | Co-operative Society | Sale deed executed by the ‘A’ Class Members of the Society in favour of the Society |
| 101.2 | C.A. No. 6831- 6832/2022 | FEDERAL HOUSE CONSTRUCTION CO-OP SOCIETY LTD & ANR VERSUS STATE OF KERALA | Appellant 1. – Co-operative Society Appellant 2. – Member of the Co-op Society | Sale deed executed by the Society in favour of the member (Appellant No. 2) of the Society (Appellant No. 1). |
| 101.3 | C.A. No. 6833/2022 | N.B. KRISHNA KURUP AND ORS VERSUS DISTRICT REGISTRAR (GENERAL) KALPETTA AND ORS | Members of the Co-operative Society (Including the Impleaders) | Sale deeds executed by the Society in favour of the members of the Society. |
| 101.4 | C.A. No. 6834-6836/2022 | ALUVA TOWN COOPERATIVE HOUSING SOCIETY VERSUS THE SUB REGISTRAR ERNAKULAM AND ORS | Co-operative Society | Sale deeds executed by the Society in favour of the members of the Society |
| 101.5 | C.A. No. 6837- 6838/2022 | THE CENTRAL EXCISE AND CUSTOMS OFFICERS HOUSING COOPERATIVE SOCIETY LTD VERSUS THE STATE OF KERALA AND ORS | Co-operative Society | Sale deeds executed by the Society in favour of the members of the Society. |
4. The facts leading to the present appeals in a nutshell are as under:
Section 35 of the Travancore-cochin Co-operative Societies Act, 1951 (hereinafter referred to as the ‘Travancore Act, 1951’) provided that the Government, by notification in the gazette, may in the case of any society or class of societies, remit the stamp duty with which, under any law for the time being in force, instruments executed in favour of or by or on behalf of a society or by an officer or member and relating to the business of such society or any class of such instruments or awards of the Registrar or Arbitrators under the Act are respectively chargeable.
A similar provision was made under the Madras Co-operative Societies Act, 1932 (hereinafter referred to as the ‘Madras Act, 1932’) as per section 30(2) of the said Act.
4.1 In exercise of the powers conferred under the Travancore Act, 1951 and Madras Act, 1932, the Government of Kerala by SRO No. 75/1960 dated 08.10.1960, directed that in respect of a co-operative society registered in the State, the whole stamp duty with which under the
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