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2006 Supreme(MP) 909

High Court Of Madhya Pradesh
AJIT SINGH, J.
MOHD.NAZEER - Appellant
Versus
STATE OF MADHYA PRADESH - Respondents
W. P. 2525 Of 2005
Decided On : 08/01/2006

Advocates Appeared:
S.K.MISHRA, Samdarshi Tiwari, Siddharth Gulatee

Interpretation of an agreement for sale as conveyance and the consequent requirement for stamp duty payment and penalty.

Headnote:

Stamp Duty - Agreement for Sale - The court impounded the instrument of agreement for sale treating it as conveyance and directed the petitioner to pay stamp duty and penalty.

Fact of the Case:

The petitioner entered into an agreement for sale of land with Bahabuddin, paid the sale consideration, and sought specific performance of the contract. Bahabuddin later avoided executing the sale deed as agreed upon.

Finding of the Court:

The court impounded the agreement for sale, treating it as conveyance, and directed the petitioner to pay stamp duty and penalty.

Issues: Dispute over the impounding of the agreement for sale and the requirement to pay stamp duty and penalty.

Ratio Decidendi: The court interpreted the agreement for sale as a conveyance, leading to the requirement for stamp duty payment and penalty.

Final Decision: The petitioner was directed to pay stamp duty and penalty for the impounded agreement for sale.

( 1 ) THIS petition, under Article 227 of the Constitution of India, is directed against the order dated 23-3-2004 passed in Civil Suit No. 8-A/2004 by the Second civil Judge, Class II, Chhindwara, whereby he has impounded the instrument of agreement for sale dated 9-6-1995 treating it as conveyance and directed the petitioner to pay stamp duty of Rs. 13. 150/- together with ten times penalty i. e. Rs. 1,31,500/-; total amounting Rs. 1,44,155/ -.

( 2 ) PETITIONER is plaintiff in the suit for specific performance of contract. His case before the trial Court is that on 9-6-1995 he entered into an agreement with bahabuddin for sale of the land bearing khasra No. 487, measuring 1250 sq. ft. situated at Mouza Chhindwara. The petitioner paid sale consideration of Rs. 15,000/- and the sale deed was to be executed on any date when he desired. Document No. 1 dated 9-6-1995 annexed to this petition is the agreement for sale between the petitioner and bahabuddin. It appears that later Bahabuddin avoided executing the sale deed as agreed upon. Petitioner, therefore, filed the present suit against him wherein he pleaded that the possession of suit land was delivered to him at the time of agreement. During the pendency of suit Bahabuddin died and hence his legal representatives, respondent nos. 2 to 3h, have been impleaded as defendants. Petitioner, in his statement recorded in the trial Court, reiterated his claim that possession of the suit land was delivered to him on the execution of the agreement for sale.

( 3 ) THE respondent Nos. 2 to 3h raised


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