The main legal point established is that the time taken for adjudication should be excluded in calculating the registration period under section 23 of the Registration Act.

JUDGMENT

A.A. Saved, J. - By this Petition, the Petitioners have impugned the communication dated 17 December 2020, whereby Respondent No.3-Joint Sub-Registrar of Assurances has refused to register the 'Agreement to License' executed between the Petitioners. Respondent No.3 has declined registration essentially on the ground that the time-period of 4 months for the registration of the Agreement under section 23 of the Registration Act, 1908, has elapsed. The Petitioners have also prayed for an order directing Respondent No.3 to accept Agreement to License for registration. According to the Petitioners, Respondent No.3 has ignored and/or failed to consider that the delay in the presentation of the Agreement to License was solely attributable to delay of 319 days on the part of Respondent No.4-Collector of Stamps in adjudicating the Agreement to License for the purpose of stamp duty.

2. Both the Petitioners are Companies who had executed an 'Agreement to License' (hereinafter referred to as 'the Agreement') dated 5 December 2019 whereby the Petitioner No.2 has agreed to license certain premises viz. Blocks B-9, B-10 and B-11 of Nirlon Knowledge Park, Western Express Highway, Goregaon (East), Mumbai - 400 063 to the Petitioner No.1. Under clause 27 of the Agreement the Petitioner No.1 is required to pay the stamp duty and registration charges.

3. On 12 December 2019, the Petitioner No.1 filed an Application before the Respondent No.4-Collector of Stamps for adjudication of stamp duty payable on the Agreement under section 31 of the Maharashtra Stamp Act, 1958 (hereinafter referred to as "the Stamp Act"). According to the Petitioners, despite following up with the Respondent No.4, the adjudication of stamp duty payable was not completed by Respondent No.4 till 26 October 2020. In the meantime, due to outbreak of Covid-19 pandemic a nation-wide lockdown was imposed from 23 March 2020 and the offices of the Respondent Nos.3 and 4 were shut. Meanwhile, on 4 April 2020 the four month period envisaged under section 23 of the Stamp Act for registration of the Agreement elapsed.

4. On 26 October 2020 after a delay of more than 10 months, the Respondent No.4-Collector of Stamps issued a Notice of Adjudication and Demand intimating the Petitioner No.1 that the stamp duty payable on the Agreement had been adjudicated/determined at Rs.39,07,89,725/-. The entire stamp duty amount has accordingly been paid by the Petitioner No.1 on 4 December 2020 which is well within the statutory period of 60 days prescribed under section 31(4) of the Stamp Act. According to the Petitioner, when the Petitioner No.1 approached the Respondent No.3-Joint Sub-Registrar of Assurance to lodge the Agreement for registration, it was informed that it will not be possible to register the Agreement as the period for registration under section 23 of the Registration Act, 1908 i.e. four months from the date of execution of the Agreement had expired. According to the Petitioners, they were informed that no circumstances existed to exercise discretion by the Registrar under the proviso to section 25 of the Registration Act, 1908 where under a further period of four months, in case of an urgent necessity or unavoidable circumstances, is provided.

5. On 4 December 2020 the Petitioner No.1 addressed a letter to the Respondent No.3 pointing out that the delay was caused by the Respondent No.4 in issuance of the Notice of Adjudication and Demand which could not be attributed to the Petitioner No.1, which letter was responded to by the Respondent No.3 by a reply stating that it would not be possible to accept the Agreement as it was executed on 5 December 2019. A tabular statement showing the date, particulars and the time taken, is set out herein below: