The court ruled that a Settlement Deed executed by a grandchild in favor of a grandparent qualifies for concessional stamp duty under Article 58(a)(i) of the Indian Stamp Act, despite the omission of 'grandparents' in the definition of 'family'.

ORDER :

Aggrieved by the Refusal Check Slip issued by the 3rd respondent refusing registration of the Settlement Deed executed by petitioner in favour of her paternal grandmother on the ground that it was liable to Stamp Duty under Article 58(a)(ii)-A of Schedule-I to the Indian Stamp Act, 1899, the petitioner has come by way of this writ petition.

2. According to the petitioner, the subject property was originally purchased by paternal grandfather of petitioner-R.Venkataswamy. The petitioner's father-R.V.Ravikumar predeceased his father R.Venkataswamy. After death of R.Venkataswamy, the petitioner and her mother succeeded to a share in the subject property representing the estate of her deceased father. Later, the petitioner's mother executed a Settlement Deed in favour of the petitioner in respect of her share. Thus, the petitioner claims 1/6th undivided share in the subject property. Out of love and affection towards her grandmother namely R.V.Meera, wife of above said R.Venkataswamy, the petitioner executed a Settlement Deed on 23.01.2024 and presented the same for registration before the 3rd respondent. The petitioner treating the same as a Settlement Deed executed in favour of a family member affixed concessional stamp duty under Article 58(a)(i) of Schedule-I to the Indian Stamp Act, 1899. The 3rd respondent/Sub Registrar refused to register the same on the ground that Settlement Deed is liable for higher stamp duty under Article 58(a)(ii)-A and directed the petitioner to pay 7% towards stamp duty on the instrument and 2% on the registration charges. Aggrieved by the said refusal check slip issued by 3rd respondent, the petitioner has come by way of this writ petition.

3. Mr.V.Manisekaran, learned counsel appearing for the petitioner by taking this Court to the explanation to Article 58(a)(i) of Schedule-I to the Indian Stamp Act, 1899 submitted that a Settlement Deed in favour of grandchild is chargeable with concessional stamp duty and hence, even though the word grandparents is not specifically included in the explanation, the Settlement Deed executed by grandchild in favour of grandparents should also be chargeable with concessional stamp duty. In support of the said contention, the learned counsel relied on the following judgments:-

(i) R.Santhosh vs. Inspector General of Registration (hereinafter referred to as Santhosh-I case) in W.P.No.29811 of 2013, dated 25.08.2014 as confirmed by the Division Bench of this Court in Inspector General of Registration and Chief Revenue Controlling Authority vs. R.Santhosh (hereinafter referred to as Santhosh-II case) in W.A.No.85 of 2015, dated 23.10.2017.

(ii) K.Thilak Kumar Vs. Chief Controlling Revenue Authority and Inspector General of Registration in W.P.No.12233 of 2008, dated 06.03.2013.

(iii) Manish Mohan Sharma vs. Ram Bahadur Thakur Ltd., reported in AIR 2006 SC 1690.

4. Per contra, Mr.B.Vijay, learned Additional Government Pleader appearing for the respondents submitted that concessional stamp duty as provided under Article 58(a)(i) of Schedule-I to the Indian Stamp Act, is applicable only for the settlements executed in favour of member of family as explained in explanation to the said Article and the said concessional stamp duty cannot be extended to settlements in favour of other members of the family as understood in common parlance.

5. In this regard, the learned Additional Government Pleader submitted that Indian Stamp Act being a fiscal statute shall be interpreted strictly and Court cannot extend the meaning of the word 'Family' by supplementing the words not included in the statute. In support of his contention, the learned Additional Government Pleader relied on the following judgments:-

(i) T.Muthu Balu vs. The Inspector General of Registration reported in 2014 (5) CTC 265.

(ii) K.S.Ravichandran vs. Inspector General of Registration-cum-Chief Revenue Controlling