IMPORTANT POINT
The main legal point established in the judgment is the interpretation and application of specific provisions of the Indian Stamp Act, particularly Article 6-A, 6-B, and 6-C of Schedule 1-A, in determining the stamp duty and penalty for an unregistered Agreement of Sale.

JUDGMENT

1. The present writ petition is filed to declare the action of the respondent No.3 in fixing the stamp duty of Rs.1, 24, 950.00 with a penalty upto 10 times on unregistered Agreement of Sale dtd. 17/9/2020 under proceedings Lr.No.IMP/2202/2023 dtd. 24/11/2023 as illegal and arbitrary and also against Article 6 of Schedule 1 - A of the Indian Stamp Act as amended by Telangana State and consequently direct respondent No.3 to fix the stamp duty on unregistered Agreement of Sale dtd. 17/9/2020 as per Article 6 of Schedule 1 - A of the Indian Stamp Act.

2. The petitioner submits that he has filed a suit in O.S.No.28 of 2023 for specific performance on the file of IV Additional District Judge, Mahabubnagar against one K.Chenna Reddy and another. In the said suit, the SubRegistrar is defendant No.2. The learned IV Additional District Judge, Mahabubnagar while issuing urgent notice in I.A.No.339 of 2023 in O.S.No.28 of 2023 has granted an ad-interim exparte injunction restraining respondent No.1 therein not to create any third party interest in respect of the suit schedule properties, which was extended from time to time till 19/12/2023.

3. Learned counsel for the petitioner submits that the stay was extended till 2/1/2024. However, a copy of the same has not been placed before this Court. It is submitted that while hearing I.A.No.339 of 2023 in O.S.No.28 of 2023 learned IV Additional District Judge found that the agreement of sale dtd. 17/9/2020 was executed on insufficient stamp paper for which deficit stamp duty is liable to be collected. Accordingly, same was sent to respondent No.3 for collection of stamp duty. It is submitted that respondent No.3 fixed the stamp duty on unregistered sale agreement vide DIS No.417 of 2023 wherein stamp duty has worked out to Rs.1, 25, 000.00 for which agreement of sale was executed, after deducting Rs.50.00, fixed the deficit stamp duty of Rs.1, 24, 950.00 and penalty upto 10 times vide Lr.No.IMP/2202/2023 dtd. 24/11/2023 which was sent to IV Additional Disrict Judge, Mahabubnagar. In the said letter, respondent No.3 directed the petitioner to appear before him for payment of stamp duty and penalty fixed by him.

4. The main grievance of the petitioner is that proceedings issued by respondent No.3 is not in accordance with the Schedule 1-A of Indian Stamp Act, 1989 as amended by Telangana State and collecting stamp duty of Rs.1, 24, 950.00 with 10 times penalty is without any basis. It is further submitted that IV Additional District Judge insisted petitioner to pay Rs.1, 24, 950.00 along with 10 times penalty else the order would be vacated.

5. Thereafter, the matter was adjourned with a condition that if the stamp duty is not paid interim order would be vacated and now learned counsel for the petitioner submits that the matter is posted on 2/1/2024 and interim orders are still subsisting.

6. Learned counsel for the petitioner drawn attention of this Court to Article 6-A Schedule I-A of stamp duty which is extracted herein:

"Agreement or memorandum of an Agreement not otherwise provided for:

(A) Where the value--

(i) does not exceed Rs.5, 000.00 -- Rs.10.00

(ii) exceeds Rs.5, 000.00 but does not exceed Rs.20, 000.00 -- Rs.20.00

(iii) exceeds Rs.20, 000.00 but does not exceed Rs.50, 000.00 -- Rs.50.00

(iv) exceeds Rs.50, 000.00 -- Rs.100.00"

7. The petitioner in support of his case has relied on a decision of this Court in the case of Pechitti Ramakrishna v. Nekkanti Venkata Manohara Rao, 2004 (1) ALD 557. and the relevant portion of the said order reads as follows:

"4. A careful reading of Article 6(B) of Schedule 1-A of the Act goes to show that it is applicable if the agreement relates to construction of a house or building including a multi-unit house or building or unit of apartment/flat/portion of a multi-storied building or for development/sale of any other immovable property. A further reading of the stamp duty payable specified in column No. 2 also makes it clear that this provisi