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HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
MR. JUSTICE AVNEESH JHINGAN, MR. JUSTICE PRAMIL KUMAR MATHUR, JJ
M/s. Maheshwari Filling Statiopn Kharwa Through Deen Dayal Son Of Jay Kishan Maheshwari - Appellant
Versus
State Of Rajasthan - Respondent
D.B. Civil Writ Petition No.9387/2015
Decided On : 25-02-2025
(A) Rajasthan Stamp Act, 1998 - Section 51 - Rajasthan Stamp Law (Adaptation) Act, 1952 - Articles 23 and 35 - Lease deed interpretation - The lease deed was for an initial term of fifteen years with automatic renewal for ten-year terms without further action from the parties, requiring the lessee to give notice only if not renewing - The Collector's conclusions were incorrect regarding the necessity for a new lease and consent for renewal. (Paras 3, 6, 8, 10, 14)
(B) Automatic renewal - The court emphasized that the renewal clause must be interpreted as requiring no action from either party for renewal, establishing that the lessor cannot refuse renewal. (Paras 8, 14)
Facts of the case:
The petitioner challenged the Board's order accepting the State's revision regarding the lease deed executed by the respondent for property valuation and stamp duty. The Collector had dismissed the reference based on the lease's terms.
Findings of Court:
The Board's order was upheld, confirming the lease deed's automatic renewal clause and dismissing the writ petition.
Issues: The main issue was whether the lease deed was for fifteen years or included automatic renewal for additional ten-year terms.
Ratio Decidendi: The court found that the lease deed's renewal clause required no action from the parties, thus the lease was effectively for more than twenty years.
Result: Writ petition dismissed.
Order :
AVNEESH JHINGAN, J
1. This writ petition is filed seeking quashing of order dated 22.04.2015 passed by the Rajasthan Tax Board, Ajmer (for short ‘the Board’) accepting the revision filed by the State.
2. The brief facts are that on 11.03.2002 respondent No.2 M/s Indian Oil Corporation Limited executed lease deed in favour of the petitioner. The lease deed was registered by the Sub Registrar Masuda, District Ajmer. An objection was raised by the audit that the valuation of the property was Rs.38,41,992/- and the requisite stamp duty was not paid. Reference made under Section 51 of the Rajasthan Stamp Act, 1998 (for short ‘the 1998 Act’) was dismissed by the Collector vide order dated 29.12.2009. The revision filed by the State against the order of the Collector was accepted by the Board vide order dated 29.12.2009.
3. The dispute is with regard to interpretation of the condition in the lease deed that as to whether the lease deed was executed only for a period of fifteen years for monthly rent of Rs.7500/-.
The relevant condition of the lease deed is quoted :-
“PROVIDED ALWAYS AND IT IS AGREED AND DECLARED that at the expiration or the said term of 10 years this lease will be automatically and without any further act or any of the parties hereto be renewed for further term of 10 years of 10 years from the expiration of last mentioned term give to the Lessors one calender month’s previous notice of their intention not to take any renewed lease. The renewed lease will be on the same rents, convenants, conditions and agreements including the present convenant for renewal.”
4. Learned counsel for the petitioner contends that the lease was only for fifteen years and the Collector (Stamps) rightly dismissed the reference. Reliance is placed upon the decisions of Supreme Court in (i) State of U.P. and Ors. Vs. Lalji Tandon (Dead) reported in [(2004)1 SCC 1], (ii) Hardesh Ores Pvt. Ltd. Vs. Hede and Company reported in [(2007)5 SCC 614] and (iii) M/s. Essar Oil Limited Vs. State of Rajasthan & Ors. in S.B. Civil Writ Petition No.14406/2017 of this Court decided on 04.09.2017.
5. As per contra, there is automatic renewal of the lease and no act was to be done by the parties for further renewal.
6. Article 23 (i) and 35 (a) of the Second Schedule to the Rajasthan Stamp Law (Adaptation) Act, 1952 (for short ‘the 1952 Act’) in force at the relevant time are reproduced:-
| Description of Instrument | Proper Stamp Duty |
| 23. Conveyance as defined by section 2 (10): (i) if relating to immovable property. (ii) if relating to movable property. | Eleven percent of the market value of the property. Half (0.5) percent of the market value of the property. |
| 35. Lease—including and under lease, or sub lease and any agreement to let or sub let— (a) Where, by such lease, the rent is fixed and no premium is paid or delivered— (i) Where the lease purports to be a term for less than one year. (ii) Where the lease purports to be for a term of not less than one year but not more than twenty years. (iii) Where the lease purports to be for a term in excess of twenty years or in perpetuity or where the term is not mentioned. | The same duty as on a Bond (No.15) for the whole amount payable under such lease. The same duty as on a conveyance (No.23) for a consideration equal to the amount or value of the average rent of two years. The same duty as on a conveyance (No.23) on the market value of the property which is the subject matter of the lease. |
7. Schedule stipulates that in case the lease deed is for more than twenty years the stamp duty shall be same as on conveyance and is to be calculated on the market value of the property.
8. The lease deed initially was for fifteen years, commencing from 11th March, 2002 and the Collector (Stamps) relying upon this dismissed the reference. There cannot be quarrel with the proposition that the document has to be read as a whole and the term of renewal of lease deed cannot be ignored. The condition of renewal reproduced above appears to have
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