Unregistered agreement for sale with possession, stamped as conveyance under amnesty, is principal instrument under Section 4; subsequent registered sale deed is other instrument attracting fixed duty, not full duty on current market value.

JUDGEMENT :

SOMASEKHAR SUNDARESAN, J.

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

Context and Factual Background:

2. This Petition is filed challenging orders of adjudication dated March 30, 2021 and August 27, 2021 by which a Sale Deed submitted by the Petitioners for adjudication before the authorities under the Maharashtra Stamp Act, 1958 (“the Act”) has been assessed with a stamp duty of Rs. 58,19,380/-. The stamp duty has been declared as payable on the premise that it ought to be computed on the market value of ~Rs.14.54 crores, valued as of 2020.

3. A brief factual overview necessary for purposes of these proceedings is set out below :-

A] Plot of Lands bearing Survey No. 655/1/1/9/3 admeasuring 2700 sq.mt. and Survey No.655/1/1/9/4 were owned by one Khatib Family. In 1987, Plot bearing Survey No. 655/1/1/9/3 was jointly purchased from the Khatib Family by J. M. Thakker Developers Pvt. Ltd, Rajendra M. Developers and Builders Pvt. Ltd. and M/s M. R. Thakker & Company Construction Pvt. Ltd.; and Plot bearing Survey No. 655/1/1/9/3 was jointly purchased by M/s Shubhkama Builders Pvt. Ltd. and M/s Shubhashani Constructions Pvt. Ltd. (collectively “Purchasers”) .

B] The Purchasers agreed to sell both plots of land to one M/s Thakkers Developers Ltd. (“Thakker Developers”) vide two separate agreements dated April 2, 1988 and April 22, 1988.

C] Thereafter, it was agreed that Thakkers Developers would sell portion of land admeasuring 2957 sq. mtrs. on the western side of Plot of land bearing Survey No. 655/1/1/9/3 along with Plot of land bearing Survey No. 655/1/1/9/4 (“Subject Land”) in favour of the Petitioners (collectively, “Thakkers”).

D] Consequently, the said Purchasers and Thakker Developers as confirming parties executed an Agreement for Sale dated July 25, 1990 in favour of the Thakkers (“Agreement for Sale”). The Agreement for Sale had been effected simply on a Rs.5/- stamp paper and it was not registered. The provisions of the Agreement for Sale entailed discharge of consideration of Rs.14,78,500, which is said to be the market value of Subject Land in the year 1990, and it also entailed handing over of possession concurrent with the execution.

E] The Thakkers submitted a Sub-division plan before the Assistant Director of Town Planning, which was approved, and consequently, vide order dated November 7, 2001, the Subject Land was numbered as Survey No. 655/1/1/5/6/9/3-4/Plot/A.

F] Under an amnesty scheme which was prevalent in 2020, the Thakkers sought adjudication of the Agreement for Sale and stamp duty in the sum of Rs. 1,17,640/- came to be assessed with attendant penalty of Rs. 4,70,560/-. These amounts appear to have been paid on July 22, 2020, and due certification endorsed on the instrument is found to have been dated July 24, 2020.

G] Pursuant to the amnesty scheme prevalent in 2020, the Thakkers intended to execute a sale deed and consequently, the Purchasers as Vendors and Thakker Developers as confirming party prepared a Sale Deed dated January 4, 2021 in respect