IN THE HIGH COURT OF MADHYA PRADESH (GWALIOR BENCH)
VISHAL MISHRA, J.
Mukesh Kumar - Appellant
Versus
Kulvinder Singh and Ors. - Respondents
Misc. Petition No. 2045 of 2018
Decided On : 10-03-2021
Stamp Duty - Agreement to Sell - Indian Stamp Act, 1899, Section 33, 35, 38 - The court discussed the provisions of the Indian Stamp Act, 1899, specifically sections 33, 35, and 38, which deal with the examination and impounding of instruments, inadmissibility of instruments not duly stamped in evidence, and the procedure for dealing with impounded instruments. The court emphasized that once a document is found to be insufficiently stamped, it is the duty of the court to impound the document and calculate the deficit stamp duty. If the party refuses to pay the deficit stamp duty, the document should be sent to the Collector for proper assessment and payment of the correct stamp duty.
Fact of the Case:
The petitioner filed a civil suit for specific performance of an agreement to sell. The defendants objected to the agreement being improperly stamped, and the Trial Court impounded the document and sent it to the Collector for calculation of the deficit stamp duty. The petitioner argued that he did not want to rely on the agreement and should not be forced to pay the deficit stamp duty.
Finding of the Court:
The court found that the Trial Court's order to impound the document and send it to the Collector for calculation of the deficit stamp duty was just and proper. It emphasized that once a document is found to be insufficiently stamped, it cannot be returned to the party without proper payment of stamp duty, even if the party chooses not to rely on the document or exhibit it in evidence.
Issues: The main issue was whether the Trial Court's order to impound the document and send it to the Collector for calculation of the deficit stamp duty was legal and justified.
Ratio Decidendi: The court held that under the Indian Stamp Act, once a document is found to be insufficiently stamped, it is the duty of the court to impound the document and send it to the Collector for proper assessment and payment of the correct stamp duty. The party's choice not to rely on the document or exhibit it in evidence does not exempt it from paying the deficit stamp duty.
Final Decision: The court dismissed the writ petition, finding no illegality in the Trial Court's order to impound the document and send it to the Collector for calculation of the deficit stamp duty.
ORDER :
Vishal Mishra, J.
1. The present petition is being filed challenging the order dated 2.4.2018, whereby the learned Trial Court has calculated the deficit stamp duty to be paid upon the document i.e. agreement to sell dated 15.7.2013 and despite the petitioner arguing the fact that he does not want to tender the said agreement to sell in evidence, the learned Trial Court has sent the same to the Collector for impounding. It is pointed out that the civil suit for specific performance of agreement to sell and for permanent injunction with respect to the property as mentioned in para 1 of the plaint was filed by the petitioner-plaintiff. The defendant no. 1 and 2, who happens to be the husband and wife have executed an agreement to sell on 15.7.2013 for consideration of Rs. 2,50,000/- per bigha and received advance of Rs. 5,00,000/- vide cheque no. 957126 & 957127 in presence of witnesses. The sale deed was executed in the month of December, 2013 and after execution the remaining consideration amount was to be paid, but despite of several requests, no heed was paid by the defendants no. 1 and 2. A notice was issued by the plaintiff on 2.1.2014 showing his readiness and willingness for execution of the sale deed, but the notice was not replied, therefore, again a notice on 15.2.2015 was issued, but the same was also not replied which forced the petitioner to file a civil suit before the learned Trial Court for specific performance of agreement to sell and permanent injunction.
2. It is argued that the written statement was filed by the defendants no. 1 and 2 denying all the averments of the plaint and has also denied from agreement dated 15.7.2013 and further stated that the so called advance of Rs. 5,00,000/- with respect to some other transactions and ultimately has prayed for dismissal. The plaintiff has filed an affidavit under Order 18 Rule 4 of CPC during the course of evidence when the petitioner's counsel tried to mark exhibit upon the agreement dated 15.7.2013 and objection under section 35 and 38 (2) of Indian Stamp Act was filed by the respondents pointing out the fact that the agreement to sell is not properly stamped. The objection was entertained by the learned Trial Court. The plaintiff counsel on 2.4.2018 stated that they do not want to rely upon the agreement to sell dated 15.7.2013 and prayed for recording of plaintiff's evidence without placing reliance upon the agreement to sell and without marking it as exhibit. It is submitted that once the plaintiff has shown his dis-interest and if he has stated that he does not want to rely upon the document, such document cannot be forced to be relied upon and should have been returned back to the plaintiff. He has relied upon the judgment passed in the case of Satya Narayan Vs. Ram Singh, 2007 (3) MPLJ 384 and in the case of Gajanand Awasthy Vs. Sharif Khan, 2008 (II) MPWN 63 to the effect that deficit stamp duty could not have been calculated by the learned Trial Court, it was the duty of the Collector. He has further relied upon the judgment passed in the case of K.B. Jayaram and another Vs. Navineethamma and others, AIR 2003 Karnataka 241 and order passed in the case of Manoj Shivhare Vs. Sunil Kumar Khandelwal and others, W.P. No. 8429/2012 order dated 9.11.2017, wherein it is held by this Court that in case the plaintiff is not willing to get the document exhibited he cannot be forced to pay the deficit stamp duty. In such circumstances the order passed by the learned Trial Court is per se illegal and has prayed for setting aside of the impugned order.
3. Per contra counsel appearing for the respondents has opposed the contentions of the petitioner and has submitted that the order passed are just and proper as it was the duty of the learned Trial Court to impound the documents and send it to the Collector of the districts for payment of deficit court fees in terms of sections 33, 35 (a) and 38 of the Indian Stamp Act, 1899. It is argued that the learned Trial Cou
Under the Indian Stamp Act, once a document is found to be insufficiently stamped, the court is duty-bound to impound the document and send it to the Collector for proper assessment and payment of th....
The court confirmed that a document evidencing possession transfers its status from an agreement to a conveyance, thus imposing requisite stamp duty as per statutory provisions.
A document admitted in evidence cannot be questioned for insufficiency of stamp duty, but courts have a mandatory duty to impound such documents regardless of any objections raised.
(1) Agreement to Sell – Suit for Specific Performance must be dismissed when it is based on an instrument that is legally inadmissible as evidence – Plaintiff cannot claim relief on the basis of a do....
Documents must be duly stamped to be admissible in evidence; the court has the authority to impound insufficiently stamped documents under the Karnataka Stamp Act.
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