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2015 Supreme(Raj) 1961

RAJASTHAN HIGH COURT
P.K.Lohra, J.
Smt. Shobharani @ Shobha Devi - Appellant
Versus
Chandra Singh & Anr. - Respondent
S.B. Civil Writ Petition No. 4045 of 2014.
Decided On : 19-11-2015

For the Appellant:Sandeep Saruparia, Advocate.
For the Respondent No. 1:L.K. Purohit, Advocate.
For the Respondent No. 2:Shreyansh Mrdia for Sandeep Shah, Advocates.

The court's discretion to impound a document and send it to the Collector (Stamps) under Section 42(2) of the Rajasthan Stamp Act, 1998, is not perverse or illegal if the party has not shown readiness and willingness to pay the deficit stamp duty and penalty.

Headnote:

STAMP ACT - SUFFICIENCY OF STAMP DUTY - POWER OF COURT TO IMPOUND DOCUMENT - INTERPRETATION OF SECTION 37 OF THE RAJASTHAN STAMP ACT, 1998 - COURT'S DISCRETION TO IMPOUND DOCUMENT AND SEND IT TO COLLECTOR (STAMPS) - APPLICABILITY OF RATIO DECIDENDI IN BHAWANA & ORS. V. CHANDMAL - DISTINCTION BETWEEN ARTICLES 226 AND 227 OF THE CONSTITUTION - SCOPE OF ARTICLE 227 - INTERFERENCE BY HIGH COURT IN PENDING CIVIL CASES.

Fact of the Case:

Petitioner filed a suit for specific performance of a contract based on an agreement to sale dated 3rd October 1972, allegedly executed by the respondent. The respondent objected to the admissibility of the agreement, claiming it was insufficiently stamped and unregistered. The petitioner asserted that the agreement was properly stamped and did not require registration. The court impounded the document and directed the petitioner to file it before the Collector (Stamps) to pay the requisite stamp duty. The petitioner later sought to pay the deficit stamp duty and penalty under Section 37 of the Rajasthan Stamp Act, 1998, but the court declined.

Finding of the Court:

The court held that the petitioner had not shown readiness and willingness to pay the deficit stamp duty and penalty from the beginning. The court distinguished the ratio decidendi in Bhawana & Ors. v. Chandmal, which allowed for payment of deficit stamp duty and penalty under certain circumstances, as the petitioner in the instant case had contested the claim of insufficient stamping and had not expressed willingness to pay the deficit stamp duty earlier. The court also held that its discretion to impound the document and send it to the Collector (Stamps) under Section 42(2) of the Act was not perverse or illegal.

Issues: 1. Whether the court erred in not exercising its powers under Section 37(1) of the Rajasthan Stamp Act, 1998, to allow the petitioner to pay the deficit stamp duty and penalty. 2. Whether the ratio decidendi in Bhawana & Ors. v. Chandmal was applicable in the instant case. 3. Whether the court's discretion to impound the document and send it to the Collector (Stamps) under Section 42(2) of the Act was perverse or illegal.

Ratio Decidendi: 1. The court held that the petitioner had not shown readiness and willingness to pay the deficit stamp duty and penalty from the beginning, and therefore, the court did not err in not exercising its powers under Section 37(1) of the Act. 2. The court distinguished the ratio decidendi in Bhawana & Ors. v. Chandmal, as the petitioner in the instant case had contested the claim of insufficient stamping and had not expressed willingness to pay the deficit stamp duty earlier. 3. The court held that its discretion to impound the document and send it to the Collector (Stamps) under Section 42(2) of the Act was not perverse or illegal.

Final Decision: The petition was dismissed.

JUDGMENT

1. - Petitioner-plaintiff has filed this writ petition to challenge impugned orders dated 24th February, 2014 (Annex.P/5) and 9th April, 2014 (Annex.P/7) passed by learned Additional Civil Judge (Junior Division) No.1, Bhilwara (for short, 'learned Court below') in a suit for specific performance of contract.

2. By order Annex. P/5, the learned Court below has opined in clear and unequivocal terms that the basis of suit, i.e, agreement to sale dated 3rd of October, 1972, is in the nature of conveyance, and being insufficiently stamped, the same is not admissible in evidence. Thereafter, while resorting to Section 37 of the Rajasthan Stamp Act, 1998 (for short, 'Act of 1998') the learned Court below impounded the document and directed petitioner-plaintiff to produce certified copy of the document with the order before the Collector (Stamps) within 15 days. It is also clarified that no further time shall be granted to the petitioner in this behalf, and posted the matter for evidence of the petitioner-plaintiff. Subsequent to that order, petitioner submitted an application by invoking sub-section (1) of Section 37 of the Act of 1998 showing his readiness and willingness to pay the deficit stamp duty and penalty thereon and for prayed for impounding the document by the Court instead of sending it to the Collector (Stamps). After hearing the rival parties, by order Annex.P/7, the learned Court below declined the prayer of the petitioner.

3. The bare necessary facts for the purpose of this writ petition are that petitioner-plaintiff filed a suit for specific performance of contract for enforcement of agreement to sale dated 3rd of October, 1972 allegedly executed in his favour by the first respondent. For seeking specific performance of contract dated 3rd of October 1972, suit was laid on 27th August, 2002. On behalf of respondent-defendant, an objection was raised about admissibility of the document, precisely, on the ground that the same is insufficiently stamped and unregistered. The objections to this effect were filed vide Annex.P/3. Responding to the objections, petitioner submitted his reply and asserted that by virtue of proviso to Section 49 of the Registration Act, 1908, there is no necessity for registration of agreement dated 3rd of October, 1972. A further plea is raised that agreement to sale is properly stamped, and therefore, same is admissible and has been rightly marked exhibit during examination-in-chief. After hearing learned counsel for the parties, the learned Court below by order Annex.P/5 found the agreement to sale as conveyance within the meaning of clause (xi) of Section 2 of the Act of 1998 and impounded the document with a direction to the petitioner-plaintiff to file it before Collector (Stamps) and submit it after paying requisite stamp duty. Later on, the petitioner made an endeavour to persuade the learned Court below by invoking sub-section (1) of Section 37 of the Act of 1998 to pay the deficit stamp duty with penalty and also tendered Rs. 100/- by application (Annex.P/6). The said application did not find favour from the learned Court below and by Annex.P/7, same was rejected. It is in that background the petitioner has invoked supervisory jurisdiction of this Court.

4. Learned counsel for the petitioner, Mr. Sandeep Saruparia, submits that the learned Court below has committed grave and serious jurisdictional error in not exercising powers under sub-section (1) of Section 37 of the Act of 1998, therefore, both the impugned orders are not sustainable. Learned counsel further submits that the learned Court below has failed to exercise powers under sub-section (1) of Section 37 of the Act of 1998 which it ought to have exercised in the backdrop of facts and circumstances of the instant case. In support of his contentions, learned counsel for the petitioner has placed reliance on a decision of this Court in Bhawana & Ors. v. Chandmal [2015 AIR CC 1237 (Raj.)] . The Court, while harmoniously co
































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