Back
B. P. COLABAWALLA, SOMASEKHAR SUNDARESAN
Prince John Edavazhikal – Appellant
Versus
Collector of Stamps – Respondent
JUDGMENT :
1. Rule. Respondents waive service. With the consent of parties, Rule made returnable forthwith and heard finally.
2. The above Writ Petition under Article 226 of the Constitution of India is filed seeking a writ, order or direction to Respondent Nos. 1 and 2 to accept a sum of Rs. 4,45,000/- as stamp duty payable on the immovable property purchased by the Petitioner in an auction conducted by Bank of India (“BOI” or “Respondent No.6”) under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, “ the SARFAESI Act, 2002 ”). The immovable property purchased by the Petitioner is the land and property situated at Gat No. 379 (Part), Village Abitghar, Taluka Wada, District Palghar, Pin – 421 303, State of Maharashtra, admeasuring 4H.21.AR-0 (4-21-0), 10.40 acres approx. with constructed area 10,700 sq.ft. (for short, the “ said property ”) for a consideration of Rs. 2,22,75,000/-. The other relief sought in the above Writ Petition is to quash and set aside the demand notice dated 11th April 2023 issued by Respondent No. 1 demanding stamp duty of an amount of Rs. 29,97,200/- and a penalty of Rs. 1,1
Stamp duty must be based on the value in the Sale Certificate issued by a Government Undertaking, not on an independently assessed market value by Stamping Authorities.
Stamp duty for Sale Certificates must be calculated based on the purchase price stated in the certificate, not the market value, with total permissible duties capped at specified rates.
The judgment established that the sale conducted by the AO under the SARFAESI Act is equivalent to a sale in the open market and exempt from scrutiny under Section 47A of the 1899 Act.
Court auctions dictate the valid market value of properties, precluding stamp authorities from imposing differing assessments of duty.
The sale by tender does not constitute a public auction under Article 18 of the Indian Stamp Act, allowing the Collector to reassess market value and stamp duty under Section 47-A.
Stamp duty – In case of a public auction monitored by court, discretion would not be available to Registering Authority under Section 47A of Indian Stamp Act, 1899.
The Collector of Stamps must adhere to previous valuations and cannot apply new ASR for determining market value in cases remanded for fresh adjudication.
Registration Authorities cannot question court-determined property valuations under Section 47-A of the Indian Stamp Act, as it undermines judicial authority.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
