The mortgage deed securing multiple loan agreements constitutes distinct transactions requiring separate stamp duty assessments under Section 5 of the Stamp Act.

JUDGMENT :

SHARMILA U. DESHMUKH, J.

1. Rule. Rule made returnable forthwith by consent and taken up for final disposal.

2. The Petition impugns the order dated 22^nd December, 2021 passed by Respondent No.2-Revisional Authority in Revision Case No.134 of 2018 arising out of order of Collector of Stamps levying deficit stamp duty of Rs 40,00,000/- alongwith penalty of Rs.32,00,000/-.

3. The facts required to be exposited as pleaded are that the Petitioner and its group company Sheth Creators Pvt Ltd are in the business of real estate and development and were in need of funds in the year 2017. For availing financial assistance, the Petitioner and Sheth Creaters Pvt Ltd approached Indiabulls Housing Finance Limited (Indiabulls). Four separate loan agreements were executed on 22^nd December, 2017 for Rs.200 Crores, 28^th February, 2018 for Rs.145 Crores, 26^th June, 2018 for Rs.160 Crores and 12^th September, 2018 for Rs.120 Crores aggregating to Rs 625,00,00,000/-.

4. The loan agreements mandated creation of mortgage to secure the fulfillment of the obligations including payment of the dues under the loan agreement. A draft of single mortgage deed was lodged for adjudication of stamp duty under Section 31 of the Maharashtra Stamp Act, 1958 (for short, “Stamp Act”). Vide interim order dated 6^th October, 2018, the Collector of Stamps adjudicated the stamp duty of Rs.10,01,100/- as due and payable with respect to the mortgage deed, which order was confirmed by order dated 11th October, 2018. Pursuant thereto, the Petitioner paid the stamp duty of Rs.10,01,100/- on 12^th October, 2018 and executed the deed of mortgage dated 12^th October, 2018 in favour of Indiabulls.

5. Subsequently an audit objection was raised as regards de stamp duty leading to issuance of communication dated 27^th October, 2020 by the Respondent No 3 calling upon the Petitioner to pay the deficit stamp duty. In response, the Petitioner addressed two holding letters dated 5th November, 2020 and filed a detailed reply on 4th December, 2020. After hearing the Petitioner, the impugned order dated 22^nd December, 2021 was passed by the Respondent No 2 in revision filed under Section 5 3A of the Stamp Act directing the Petitioner to pay the deficit stamp duty and penalty. Hence the present Petition.

6. Mr. Dani, Learned Senior Advocate for the Petitioner submits that one mortgage deed was executed to secure the loans advanced by four loan agreements and the mortgage deed constituted the principal agreement for the purpose of Section 4 of the Stamp Act. He submits that the mortgage deed when lodged for adjudication was rightly adjudicated for payment of stamp duty of Rs 10,01,100/- under Article 40(b), 48(d), 5(h)B and 35 read with Section 6 of the Stamp Act, which stamp duty was duly paid. He submits that the principle agreement was the mortgage deed and the ancillary agreements being loan agreements formed part and parcel of one single transaction and could not be charged separately. He would point out Schedule III of the mortgage deed setting out details of the four loan agreements secured by the mortgage deed as principal document which indicates that all documents are part of the same transaction. He submits that authorities have considered the four loan agreements and the mortgage agreement as separate instruments and have assessed the stamp duty independently which is contrary to of the Stamp Act.

7. He submits that the mortgage deed and loan agreements do not constitute separate distinct matters or transactions and therefore Section 5 of Stamp Act is not applicable. He would further submit even if of the Stamp Act is applie