IMPORTANT POINT
The Lieutenant Governor of Andaman and Nicobar Islands lacked authority to issue notifications enhancing stamp duty and registration fees, rendering them null and void.

JUDGMENT :

(Debangsu Basak, J.)

1. Six matters have been heard analogously as they involve similar issues. Out of the six matters, one is an appeal being MA 17 of 2020 directed against the order dated January 13, 2020 passed in WP No. 269 of 2019. Of the remaining five matters, three are writ petitions while two are public interest litigations.

2. The writ petitioners have assailed notifications bearing Nos. 273, 274 and 275 dated October 22, 2019. By such notifications, the Lieutenant Governor of Andaman and Nicobar Islands has framed rules called the Andaman & Nicobar Islands Stamp (Prevention of Undervaluation of Instruments) Rules, 2019, fixed minimum reference circle rates, and prescribed stamp duty charges payable for registration of certain documents.

3. Ms. Anjili Nag, Advocate appearing for the writ petitioners in WPA (P) 81 of 2020 and WPA (P) 84 of 2020 has contended that, Indian Stamp Act was enacted in 1899. Constitution of India has come into force on January 26, 1950. Article 246 of the Constitution of India has prescribed the Union List, State List and the Concurrent List. She has referred to Serial 91 in the Union List and contended that Union Government can make laws in respect of rates of stamp duty relating to bills of exchange, cheques, promissory notes, Bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts. She has also referred to Serial 63 of the State List and contended that State Government has the power to make laws in respect of rates of stamp duty of documents other than those specified in the Union List with regard to rates of stamp duty.

4. Ms. Anjili Nag, Advocate has contended that, regulation governing the rates of stamp duty was promulgated by the President of India. By such regulation, Schedule 1A had been inserted to the Indian Stamp Act, 1899.

5. Ms. Anjili Nag, Advocate has contended that, on April 25, 1959 President delegated certain powers to the Lieutenant Governor of Andaman and Nicobar Islands in relation to Clause 9 of Section 2 and Sections 33, 70, 74, 76A and 78 of the Indian Stamp Act, 1899. No other power had been delegated to the Lieutenant Governor of these islands.

6. Ms. Anjili Nag, Advocate has contended that, there is no provision under the Indian Stamp Act, 1899 whereby State Government is empowered to increase the stamp duty. She has contended that, Section 9 of the Indian Stamp Act, 1899 empowers the Government to reduce, remit or compound the duties payable. Such section, according to her, does not empower the Government to increase the stamp duty.

7. Ms. Anjili Nag, Advocate, has contended that, none of the Sections of the Indian Stamp Act, 1899 which had been delegated by the President to the Lieutenant Governor, deals with prescribing rates of stamp duty.

8. Ms. Anjili Nag, Advocate has referred to the compilation of documents relied upon on behalf of the administration and contended that, such documents clearly show that the President never delegated the powers of prescribing rates of stamp duty to the Lieutenant Governor of these islands. In particular, she has referred to the notification dated June 2, 1965 to contend that, function of State Government in respect of provision of Section 9 of the Indian Stamp Act, 1899 was delegated to the Chief Commissioner of Andaman and Nicobar Islands. Chief Commissioner of Andaman and Nicobar Islands have, in exercise of such powers delegated issued several notifications regarding remission. Such notifications are not for the purpose of enhancement.

9. Ms. Anjili Nag, Advocate has contended that, unless the President delegates his power to prescribe rates of stamp duty, the Lieutenant Governor cannot prescribe the same. She has relied upon 2020 Volume 14 Supreme Court Cases 664 (K. Lakshminarayanan vs. Union of India and Another) to contend that, Central Government means the President for the Union Territory and not the Administrator. She has contended that, President a