The General Power of Attorney constitutes a deed of conveyance under Karnataka Stamp Act, necessitating relevant stamp duty payment.

ORDER :

LALITHA KANNEGANTI, J.

Aggrieved by the order passed in I.A.No.10 in O.S.No.9/2011 dated 31.08.2018 by the Senior Civil Judge & JMFC., Devanahalli, the petitioner/plaintiff is before this Court.

2. The plaintiff had filed the suit seeking specific performance of the agreement dated 31.12.2007 and seeking direction to the defendant to execute joint development agreement in terms of the agreement dated 31.12.2007 and abide by the same and also a mandatory injunction restraining the defendant from cancelling/revoking the irrevocable general power of attorney dated 31.12.2007 along with other prayers. In the suit, the defendant had taken an objection and he has come up with I.A.No.10 stating that the affidavit and the General Power of Attorney dated 31.12.2007 is insufficiently stamped and the same has to be impounded. It is the specific case of the defendant that the plaintiff has filed a suit for the relief of specific performance of the agreement by way of affidavit based on the unregistered General Power of Attorney and affidavit dated 31.12.2007. It is the case of the defendant that in the notarized affidavit, payment of an amount of Rs.67,00,000/- has been shown stating that the said amount has been paid to the defendant by the plaintiff. The General Power of Attorney has been referred in para No.7 of the affidavit. According to the defendant, both the documents are contemporaneous to each other. Further, clause-9 of the General Power of Attorney would attract duty and penalty and therefore, the plaintiff is liable to pay the duty and penalty on the consideration shown in the affidavit dated 31.12.2007.

3. The plaintiff has filed his objections stating that the matter is at the stage of evidence and only for the purpose of protracting the proceedings, the present application is filed and the same is liable to be rejected. The notarized General Power of Attorney dated 31.12.2007 and notarized affidavit dated 31.12.2007 are duly stamped and are in accordance with law and the stamp duty paid is in accordance with the KARNATAKA STAMP ACT , 1957. Certain allegations are made that the defendants are not abiding with the orders of the Court.

4. The trial Court had considered the contentions raised on behalf of both the parties and allowed this application holding that the General Power of Attorney dated 31.12.2007 requires duty as conveyance under Article 20(1) of the KARNATAKA STAMP ACT , 1957 and the plaintiff has to pay a proper stamp duty as per Article 41(e) of the KARNATAKA STAMP ACT and for the stamp duty, proper stamp duty, the deficit stamp duty and the penalty was calculated and the plaintiff was directed to pay an amount of Rs.41,24,780/-. Aggrieved thereby, the plaintiff is before this Court.

5. Learned counsel for the petitioner/plaintiff has raised specific contentions that there is no consideration under the General Power of Attorney dated 31.12.2007. The General Power of Attorney do not give right to the plaintiff to sell the property. There is no possession given to the plaintiff, as such, it do not amount to conveyance as defined under Article 20(1) of the KARNATAKA STAMP ACT . Further, it is submitted that even the manner in which the said amount is determined by the trial Court is also not correct and improper calculation was done by the trial Court without seeking any assistance from the Revenue Department. It is submitted that at any stretch of imagination, Article 20(1) of the KARNATAKA STAMP ACT do not apply to the present case and to these documents as they cannot be called as conveyance.

6. Learned counsel appearing for the respondents submits that the General Power of Attorney gives authority to the plaintiff to motivate and do several