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2018 Supreme(Kar) 225

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
B. VEERAPPA, J.
Sri R.Rangadhamaiah S/o Chikkarangappa – Appellant
Vs.
Sri. Channarayappa, S/o late Nyathappa - Respondent
WRIT PETITION NO.40054 of 2017 (GMCPC)
Decided on : 04-01-2018

Advocates:
Advocate Appeared:
For the Appellant :Sri. Bapat Sampath Vinayaka Rao, Advocate

Headnote:KARNATAKA STAMP ACT, 1957 [K.A. No. 34/1957] - Schedule, Article 5, (e)(1), 20, Section 34 - Agreement of sale - Express recitals in agreement to effect that possession is delivered - Possession once delivered under agreement, it would amount to conveyance attracting stamp duty under Article 5(e)(1) - Impounding of document and directing petitioner to pay stamp duty for conveyance under Article 20, held, proper.

ORDER :

The plaintiff filed present writ petition against the order dated 2.2.2017 made in O.S.No.198/2007 directing the plaintiff to pay the stamp duty to the agreement dated 10.11.2006 as per Article 5(e)(1) as conveyance under Article 20 of the Stamp Act.

2. The plaintiff filed suit for specific performance to enforce the agreement dated 10.8.2006 contending that the defendants have not executed the agreement in favour of the plaintiff agreeing to execute the sale deed within three months, in spite of repeated request made, they failed to execute the sale deed. However, the relevant records standing in the name of the ancestors of the defendants were not mutated in the name of the defendants in time. Therefore, the defendants executed another agreement dated 10.11.2006 extending the time for five more months. In spite of the same, the defendants failed to execute the sale deed. Therefore, filed the suit for specific performance.

3. The defendants denied the plaint averments and contended that the very suit filed by the plaintiff is not maintainable and sought for dismissal of the suit. During the pendency of the proceedings, the plaintiff filed application for amendment of the plaint restricting the prayer for specific performance of the agreement dated 10.8.2006, in view of the fact that second agreement dated 10.11.2006 was only for extension of time. The same was opposed on the ground that amendment is sought only to avoid the payment of stamp duty on the agreement of sale dated 10.11.2006 and the amendment application was dismissed. The said order was the subject matter of Writ Petition No.34950/2011 before this Court. This Court by an order dated 22.11.2016 directed the trial Court to reconsider the application for amendment. The trial Court by the separate order dated 2.2.2017 allowed the application for amendment. However observed that if any insufficiently stamped agreement of sale produced on record, this Court at liberty to impound the document under Section 34 of the Stamp Act and collect the duty and penalty.

4. Accordingly, the trial Court took the cognizance of the same and proceed to pass the impugned order holding that under the agreement dated 10.11.2006 defendants delivered possession to the plaintiff. Therefore, the agreement of sale dated 10.11.2006 is insufficiently stamped as Rs.200/stamp duty is paid and same is impounded under the provisions of Section 34 of the Stamp act. Accordingly, directed to pay stamp duty and penalty on the sale consideration on the agreement dated 10.11.2006. Hence, the present writ petition is filed.

5. I have heard the learned counsel for the petitioner.

6. Sri Bapat Sampath Vinayaka, learned counsel for the petitioner contended that the impugned order passed by the trial Court impounding the agreement dated 10.11.2006 directing the plaintiff to pay the stamp duty as contemplated under the provisions of Article 5(e)(1) is erroneous, contrary to the material on record. He would further contended that the second agreement relied upon by the plaintiff was filed for the purpose of extension of time and the suit was filed within three years from the date of the first agreement and second agreement was filed unnecessary. He would further contended that even the trial Court on the same day allowed the application for amendment and possession was delivered only for removal of bushes grown in the disputed property. Therefore, does not amount to deliver the possession and stamp duty need not be paid. He would further contended that relief sought is only on the basis of the first agreement dated 10.8.2006 and not on the basis of the second agreement dated 10.11.2006. Therefore, stamp duty need not be paid. Hence, he sought to quash the impugned order passed by the trial Court by allowing the present writ petition.

7. Having heard the learned counsel for the petitioner it is undisputed fact that the plaintiff has entered into an agreement with the defendants dated 10.8.2006 and relief sought






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