An agreement to sell followed by or evidencing delivery of possession of the property agreed to be sold is chargeable as a sale under Article 47a of Schedule IA to the Indian Stamp Act and the instrument of sale in pursuance of such agreement subsequently executed shall be chargeable with a duty of rupees five.

S. DASARADHA RAMA REDDI, J.

( 1 ) THE interesting question that arises in this civil revision petition is whether an agreement of sale stipulating delivery of possession on payment of certain amount is eligible to stamp duty as conveyance under Explanation to Art. 47a of Schedule IA to the Indian Stamp Act (for short the Act ) as applicable in Andhra Pradesh, when subsequently as per the stipulation possession was delivered.

( 2 ) THE petitioner entered into agreement on 22-4-1990 with the 2nd respondent who agreed to sell four acres of land for Rupees 20,000/ -. As per the agreement, Rs. 8,000. 00was paid by the buyer and the balance Rs. 12,000. 00 was agreed to be paid within two months. The 2nd respondent has undertaken to deliver possession of the property and execute the sale deed as and when desired by the buyer, if the balance of Rs. 12,000/- is paid. The agreement was executed on Rs. 20. 00 stamp paper. Subsequently, on 30-5-1990, the petitioner paid balance sale consideration of Rs. 12,000. 00 and the second respondent delivered possession of the property to the petitioner. This endorsement was made on the back of the agreement duly signed by second respondent. In E. A. No. 157 of 1993 in O. S. No. 335 of 1978, the petitioner sought to mark this agreement in support of his plea that the property belongs to him and cannot be attached in execution of the decree against first respondent. The learned counsel for the decree holder objected to it stating that under Art. 47 A of Schedule IA to the Act, the document is insufficiently stamped and cannot be admitted. The lower Court upheld the objection. Hence, this revision petition.

( 3 ) SHRI P. S. Narayana, learned counsel for the petitioner, contends that Explanation to Art. 47a of the Act applies only if possession follows immediately on execution of the agreement of sale or if possession was already delivered pursuant to execution of the agreement or at least at the time of the agreement and as in the instant case, possession was delivered after one month and 8 days, Explanation to Art. 47a does not apply. To appreciate this contention, it is necessary to note the background of introduction of Explanation to Article 47a of the Act which together with proviso to Art. 20 was inserted by A. P. Amendment Act 17 of 1986. Article 20 of Schedule IA reads as follows:"20. conveyance as defined by Section 2 (10), not being a sale, charged under (No. 47a) or a transfer charged or exempted under (No. 53) . Provided that where an agreement to sell an immovable property is stamped with the ad valorem stamp required for a conveyance on sale under Art. 47a and a conveyance on sale in pursuance of such agreement is subsequently executed, the duty on such conveyance on sale shall be the duty payable under the article less the duty already paid under Art. 47a subject to a minimum of five rupees. "article 47a of Schedule IA to the Act reads as follows:"47a. Sale is defined in Section 54 of the Transfer of Property Act, 1882- Explanation:-- An agreement to sell followed by or evidencing delivery of possession of the property agreed to be sold shall be chargeable as a sale under this article and the instrument of sale in pursuance of such agreement subsequently executed shall be chargeable with a duty of rupees five. "in the Statement of Objects and Reasons of the Bill, it is stated"in Article 20 it has been decided to provide for payment of stamp duly on agreements to sell at conveyance rate when they are accompanied by delivery of possession of the property as the parties are not getting the sale deeds registered by paying legitimate stamp duty". This evidently applies to Explanation to Article 47a also. The buyers who obtain possession of the property pursuant to the agreement of sale are entitled to rely on the principle of part performance stated in Section 53a of the Transfer of Property Act which reads as follows:"where any person contracts to transfer for consideration any immovabl

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