The short question that arises for consideration in this writ petition is whether a sale deed executed by a member of a co-operative society in favour of the co-operative society of which he is a member, is eligible for remission of the whole of the stamp duty payable on it under the Kerala Stamp Act, 1959. The brief facts of the case are as follows:-

2. The petitioner is a co-operative society. It was registered in the year 1937 under the Madras Co-operative Societies Act, 1932. With the enactment and coming into force of the Kerala Co-operative Societies Act, 1969 (hereinafter referred to as “the Act” for short) with effect from 15.5.1969, the Madras Co-operative Societies Act, 1932 and the Travancore Cochin Co-operative Societies Act, 1951 stood repealed. However in clause (ii) of sub-section (2) of section 110 of the Act it was stipulated that notwithstanding such repeal, any society existing in the State on the date of commencement of the Act which has been registered or deemed to be registered under any of the repealed Acts shall be deemed to be registered under the Act and the bye-laws of such society shall, so far as they are not inconsistent with the provisions of the Act, continue in force until altered or rescinded. The petitioner society is therefore deemed to be a co-operative society registered under the Act. The petitioner society is classified as an urban co-operative bank, having regard to the principal object provided in its bye-laws. The term ‘urban cooperative bank’ is defined in section 2(ta) of the Act as follows:-

“2(ta) “Urban Co-operative Bank” means a society registered under this Act having its area of operation in the Urban areas and which undertakes banking business with the licence obtained from Reserve Bank of India.”

3. The Managing Committee of the petitioner society that met on 8.8.2009 resolved to purchase a parcel of land, 3 cents in extent, lying adjacent to the head office of the society for the purpose of putting up a building to house the record room, generator room, ATM counter, core banking centre and also to provide parking space for cars. The Managing Committee also resolved to request the Joint Registrar of Co-operative Societies (General), Malappuram for permission to purchase the property utilizing own funds of the society. Ext.P4 is a copy of the resolution adopted by the Managing Committee of the society on 8.8.2009 in that regard. Pursuant thereto, the General Manager of the petitioner society submitted Ext.P6 representation dated 31.8.2009 before the Joint Registrar of Co-operative Societies (General), Malappuram seeking permission to purchase the property. By Ext.P7 order dated 24.3.2010, the Joint Registrar of Co-operative Societies, (General), Malappuram granted permission to purchase the land subject to the terms and conditions stipulated therein.

4. Shortly thereafter, the owner of the land executed the original of Ext.P8 sale deed dated 3.5.2010 conveying 2 cents of land for a sale consideration of Rs.12,00,000/- to the petitioner society. The sale deed was presented for registration before the Sub Registrar, Manjeri on 3.5.2010. Ext.P8 sale deed contained a recital to the effect that as it is executed in connection with the business of the society, stamp duty is not paid thereon. The Sub Registrar, Manjeri, before whom the instrument was presented for registration, impounded it under section 33(1) of the Kerala Stamp Act, 1959 and forwarded it to the District Registrar, Malappuram, as provided under section 37(2) thereof. By Ext.P10 order passed on 24.5.2010 the District Registrar held that stamp duty is payable on Ext.P8 sale deed and directed the petitioner society to remit the sum of Rs.96,000/- towards stamp duty and Rs.100/- towards penalty. The petitioner society was also informed that if the stamp duty and penalty are not paid, steps will be taken to recover it under the Kerala Revenue Recovery Act, 1968. Ext.P10 is under challenge in this writ petiti