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2013 Supreme(Kar) 483

IN THE HIGH COURT OF KARNATAKA (CIRCUIT BENCH AT DHARWAD)
Aravind Kumar, J.
Suman
Vs.
Vinayaka and Ors.
Writ Petition No. 60926 of 2011, 65188 and 65189 of 2009, 76790 and 79911 of 2013 (GM-CPC)
Decided On: 14.08.2013

Advocate Appeared:
For Appellant/Petitioner/Plaintiff:Sriyuths Aravind D. Kulkarni, V.P. Kulkarni, Sadiq N. Goodwala and M.H. Patil, Advocates
For Respondents/Defendant:Smt. K. Vidyavathi, Additional Government Advocate, Sriyuths S.N. Banakar, M.G. Naganuri, S.P. Patil, Anant R. Hegde and A.S. Patil, Advocates

Headnote:KARNATAKA STAMP ACT, 1957 - Sections 33, 34 & 39(1)(b): [Aravind Kumar, J] Production of document insufficiently stamped - Held, A combined reading of Section 33 and Section 34 would indicate that a discretion is available to the Court namely, it can either impound the document under Section 33 before it is tendered or evidence or impound the same when it is tendered in evidence under Section 34 and collect duty and penalty as provided thereunder. In the light of the afore-stated dicta, it has to be held that when a document is produced in the course of the proceedings before an Authority who is empowered to receive the same, it has to be necessarily impounded under Section 33 of the Act and it includes Court.

        When the Court impound document under Section 33 or 34 and when such instrument or document is tendered in the course of evidence, Court has to necessarily levy duty chargeable on such instrument together with penalty as prescribed under clause (a) of proviso to Section 34 without sending the same under sub-section (2) of Section 37 for being adjudicated by the Deputy Commissioner under Section 39. Section 33 can be invoked by Court as well as by every person in-charge of a public office. However, Section 34 can be invoked only by such person who by law or by consent of parties has authority to receive a document in evidence.

        In the instant case during the course of further evidence defendant had sought for marking of an unregistered partition deed. Impugned order does not disclose as to whether said document has been impounded by the trial Court in exercise of its power under Section 33 of the Act or not. However, it would indicate that when the said unregistered partition deed was sought to be introduced in the evidence of defendant, same came to be objected to by the plaintiff. As such, trial Court held that each sharer should pay a sum of Rs.250/- as duty towards their share. The impugned order does not disclose or indicate that there is adjudication with regard to the admissibility of an unregistered document. Order of Trial Court referring the document to District Registrar and the Order of District Registrar were set aside.

        However, liberty was reserved to trial Court to pass orders regarding payment of stamps duty and penalty by keeping in mind the law laid down in Paramesh J.S vs Indramma. [2008 (5) KLJ 502 : 2008 (3) KCCR 2061 : 2008 (5) AKR 349 : AIR 2008 Kar 172] and Digambar Warty & ors vs District Registrar, Bangalore Urban District, Bangalore & anr. [ILR 2013 (2) Kar 2099: 2013 (4) KLJ 247: 2013 (3) AKR 597 : 2013 (4) KCCR 2700].

       KARNATAKA STAMP ACT, 1957 - Section 34: [Aravind Kumar, J] Production of insufficiently stamped document - Court itself has to determine the deficit stamp duty and collect the same with penalty of 10 times.

ORDER

Aravind Kumar, J.

Regarding W.P. No. 60926 of 2011:

1. Petitioner who is defendant 1 in O.S. No. 805 of 2009 is seeking for quashing of order dated 20-11-2010 Annexure-C passed by Civil Judge (Junior Division), Dharwad and order dated 18-1-2011 passed by the District Registrar, Dharwad, at Annexure-D whereunder Trial Court has held that agreement of sale dated 23-3-2000 is insufficiency stamped by order dated 20-10-2010 and has directed the registry to refer the said document to the Sub-Registrar, Dharwad, to collect deficit stamp duty and subsequently by impugned order dated 20-11-2010 referred the said agreement of sale to the District Registrar, Dharwad, to collect stamp duty as per law. Pursuant to which District Registrar by order dated 18-1-2011 Annexure-D has impounded the document under Section 33 of the Karnataka Stamp Act, 1957 (hereinafter referred to as 'Stamp Act' for brevity) and ordered for collection of stamp duty of Rs. 30,000/- under Article 5(e)(i) by levying penalty of Rs. 5,000/- in exercise of his power under Section 39 of the Karnataka Stamp Act, 1957. It is contended by Mr. Aravind D. Kulkarni, learned Counsel appearing for the petitioner that under Section 33 of the Karnataka Stamp Act, 1957 when a document which is insufficiently stamped or not duly stamped is produced in a proceedings before Court, it has to be impounded by such Court itself and duty and penalty is to be collected and as such Trial Court could not have referred the same to the District Registrar, Dharwad, for calculation of stamp duty with penalty. He would also contend that proviso to Section 34 of the Act makes it clear that while impounding a document, Court has no discretion except to impose penalty of 10 times the proper duty or deficient portion thereof, since Section 34of the Act mandates that no document can be admitted in evidence for any purpose unless it is duly stamped under Section 34 of the Act. As such, he contends Court below committed an error in referring the disputed document to the District Registrar, Dharwad for collecting the duty since Section 43 of the Stamp Act does not envisage any such reference. He would further contend that District Registrar without giving notice to the parties and without hearing the parties has proceeded to collect the stamp duty exercising his discretionary power under Section 39 though he did not have jurisdiction to impose lesser penalty and same is impermissible in law. On these grounds, he seeks for setting aside the order dated 20-11-2010 Annexure-C passed by the Trial Court as well as the consequential order of determination by the District Registrar, Dharwad dated 18-1-2011 Annexure-D.

Regarding W.P. Nos. 65188 and 65189 of 2009:

2. Petitioners who are plaintiffs in the Trial Court in O.S. Nos. 101 and 100 of 2002 respectively are before this Court seeking for quashing of the order dated 20-8-2009 Annexure-D whereunder application I.A. No. 3 filed by the plaintiffs under Section 33(1) of the Karnataka Stamp Act, 1957 praying to impound the agreement of sale dated 3-7-1997 and sending it to the Deputy Commissioner (Stamps), Bagalkot, for taking necessary action came to be allowed in part namely, it was ordered to be impounded and prayer to send the document to the Deputy Commissioner (Stamps) came to be rejected by order dated 20-8-2009 Annexure-D and pursuant to the said order, calculation has been made by the Registry of Trial Court and petitioners have been directed to pay stamp duty and penalty of Rs. 5,20,300/- and Rs. 6,57,800/- respectively by 21-8-2009, contending inter alia that when an application is voluntarily filed under Section 33(1) of the Karnataka Stamp Act, 1957 by the plaintiffs in both the suits to impound the agreement of sale dated 3-7-1997, for being referred to the Deputy Commissioner (Stamps), Bagalkot, for collecting deficit stamp duty and penalty, Trial Court could not have allowed the application in part, namely, it could not have impounded the docum



































































































































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