IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
B.S. BHANUMATHI, J.
Mandava Venkata Narayana – Petitioner
Versus
Kakumani Subba Rao Died and Others – Respondents
Civil Revision Petition Nos. 251, 728 of 2023
Decided On : 13-09-2024
Stamp Duty - Specific Performance - Article 227, Section 49, Article 47-A - The court interpreted the provisions regarding stamp duty on agreements of sale, emphasizing that agreements evidencing delivery of possession require stamp duty, influencing the dismissal of the revision petitions.
Fact of the Case:
The plaintiff filed for specific performance of a sale agreement, claiming possession of the property. The defendants contested the agreement's validity and the necessity of stamp duty, leading to legal disputes over the agreement's admissibility and the plaintiff's possession.
Finding of the Court:
The court found that the plaintiff's possession was based on the agreement, which required stamp duty as it was an agreement of sale with possession. The trial court's orders were upheld, dismissing the revision petitions.
Issues: Whether the agreement of sale required stamp duty and if the plaintiff's possession as a tenant affected the need for such duty.
Ratio Decidendi: The court held that an agreement of sale with possession necessitates stamp duty, regardless of the plaintiff's prior tenant status, as the agreement established a change in possession rights.
Result: Both revision petitions are dismissed.
ORDER :
1. C.R.P. No. 728 of 2023 is filed under Article 227 of the Constitution of India aggrieved by the docket order dated 05-03-2018 in O.S. No. 286 of 2014 on the file of Additional Senior Civil Judge, Ongole.
C.R.P. No. 251 of 2023 is filed under Article 227 of the Constitution of India aggrieved by the order dated 23-11-2022 in I.A. No 359 of 2018 in O.S. No. 286 of 2014 on the file of Additional Senior Civil Judge, Ongole.
2. Since the petitions are interconnected and arise out of the same suit, they are heard together and are being disposed of by this common order.
3. The revision petitioner is the plaintiff and the respondents are the defendants.
4. The plaintiff filed the suit for specific performance of the agreement of sale dated 26.04.2010 and delivery of possession of the suit schedule property.
5. The case of the plaintiff is briefly that the 1st defendant is the father of the defendants no. 3 and 4. The 2nd defendant is the daughter-in-law of the 1st defendant i.e. wife of 1st defendant’s eldest son late Ramesh. The plaintiff contended that the defendants no. 1 to 3 intended to sell the plaint schedule property to discharge their family debts and entered into the suit agreement of sale for a value of Rs.5,50,000/- out of which Rs.3,50,000/- was paid to Samudrala Gangadhar, S/o Madhusudana Rao to discharge his debt due from the defendants no. 1 to 3 and further a sum of Rs.18,000/- was paid to one Boilla Lakshmi Narayana to discharge his debt incurred by the 1st defendant for his family necessities and additional amount of Rs.1,50,000/- was received by the 2nd defendant and thus the balance amount payable is only Rs.32,000/-. The plaintiff further stated that the defendants have to execute a registered sale deed and confirm the plaintiff’s possession over the plaint schedule property which is in occupation of the property as a tenant, however as they did not do so, the plaintiff got issued a legal notice dated 13.02.2014 to the defendants no. 1 to 3 upon issuing of which, the 1st defendant, along with 4th defendant to give shelter to the 1st defendant as he is a sick person and the other defendants also requested the plaintiff to provide accommodation to the 1st defendant and accordingly, on the advice of the village elders also, the schedule property was allowed to be occupied by the defendants for accommodation of the 1st defendant. The plaintiff further stated that due to change in the politics after elections held recently before the suit the defendants were influenced by the politicians and got issued a reply notice and when the plaintiff questioned the same, the defendants replied that they were going to vacate the property and executed a registered sale deed after completion of MPTC and ZPTC elections, but after completion of the elections, due to political differences, the defendants were influenced to create spurious and nominal document and further politicians are planning to get a complaint lodged to the police against the plaintiff through the defendants to harass the plaintiff at the instance of the 4th defendant, who played prominent role after giving notices. Under these circumstances, the plaintiff stated to have filed the suit.
6. Written statement was filed only by the 4th defendant denying the pleadings in the plaint and further stating that the 1st defendant executed a Will in favour of the 4th defendant bequeathing the plaint schedule property in his favour and after the death of the 1st defendant, the 4th defendant got the possession and enjoyment thereof. It is specifically denied that the plaintiff had never been in possession of the plaint schedule property at any time.
7. 1st and 3rd defendants died and 2nd defendant remained ex-parte.
8. On 05.03.2018, the trial Court directed the sale agreement dated 02.04.2010 to be sent to the District Registrar for impounding by collecting stamp duty and penalty as it is a possessory agreement of sale. I.A. No. 359 of 2018 was filed under Section 151 CPC t
An agreement of sale with possession requires stamp duty, and prior tenant status does not exempt the agreement from this requirement.
Agreements evidencing delivery of possession are liable for stamp duty as conveyances under the Stamp Act.
The possession to be handed over in the future does not make the document insufficiently stamped. The trial court cannot delegate the duty of calculating the stamp duty payable to the office attached....
The main legal point established in the judgment is that an agreement holder is bound to pay stamp duty as indicated in Article 5(e)(i) of the Karnataka Stamp Act, even if the intending purchaser cla....
Agreements of sale must be duly stamped to be admissible in evidence; insufficiently stamped documents are invalid if they do not confer actual possession.
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