The applicable stamp duty for an unregistered agreement of sale for open agricultural land falls under Article 6(A) of the Indian Stamp Act, 1899, not Article 6(B).

ORDER :

1. This writ petition is filed to declare the action of respondent No.3 in fixing the stamp duty of Rs.1,24,950/- and imposing three times penalty to Rs.3,74,850/- totalling to Rs.4,99,800/- on an unregistered agreement of sale dated 17.09.2020 under proceedings No.IMP/2202/2023 dated 15.02.2024 as illegal and arbitrary and also against the order in W.P.No.34006 of 2023 dated 20.12.2023 and consequently direct respondent No.2 to fix stamp duty on unregistered Agreement of sale dated 17.09.2020 as per Article 6 Schedule 1A of the Indian STAMP ACT as amended by Telangana State.

2. Heard learned counsel for the petitioner and learned Assistant Government Pleader for Stamps and Registration appearing on behalf of respondents. Perused the record.

3. The brief facts of the case are that the petitioner filed suit for specific performance vide O.S.No.28 of 2003 pending on the file of IV Additional District Judge, Mahabubnagar against one K.Chenna Reddy for specific performance. The Sub-Registrar, Mahabubnagar is defendant No.2 therein. It is submitted by learned counsel for the petitioner that the IV Additional District Judge while issuing notice in I.A.339 of 2023 in said O.S.No.28 of 2023 granted an ad-interim exparte injunction restraining respondent No.1 not to create any 3rd party interest in respect of the suit schedule property therein. The said injunction order was extended from time to time.

4. While things stood thus, respondent No.3 herein fixed stamp duty at Rs.1,25,000/- on an unregistered Agreement of Sale dated 17.09.2020 vide proceedings Dis.No.417 of 2023 and after deducting Rs.50/- on which agreement of sale was executed, and fixed deficit stamp duty of Rs.1,24,950/- and a penalty up to 10 times was fixed vide Letter dated 24.11.2023. The said letter was sent to IV Addl. District Judge, Mahabubnagar. Aggrieved by the same, petitioner filed a writ petition in W.P.No.34006 of 2023, wherein this Court has passed the following order:

“Taking into consideration the facts and circumstances of the case and the decisions referred above, there is no dispute that the subject land as per agreement of sale is a open land and no constructions are existing and in view of the same the subject documents shall be impounded by applying Article 6(A) of Schedule 1(A) of the Indian STAMP ACT and not Article 6(B) of Schedule 1(A) of Indian STAMP ACT as claimed by respondent authorities.”

5. Learned counsel would further submit that in the above said order, the Court permitted the petitioner to make a representation to respondent No.3 and directed respondent No.3 to pass appropriate orders after giving a fair opportunity of hearing. In terms of orders passed in W.P.No.34006 of 2023 in the order dated 20.12.2023, petitioner has made a representation before respondent No.3. However, respondent No.3, without giving an opportunity of hearing has passed the impugned order dated 15.02.2024 and observed that the said document is an Agreement of Sale without possession and chargeable for stamp duty under Article 6(B) of Schedule I-A of Indian STAMP ACT , 1899 for which 0.5% stamp duty is to be paid on above said consideration amount for the purchase of immovable property. In view of the same, petitioner was directed to pay deficit stamp duty of Rs.1,24,950 along with penalty of Rs.3,74,850/- totalling to Rs.4,99,800/-.

6. When the matter is taken up for hearing on 06.03.2024, this Court has suspended the impugned order dated 15.02.2024 for a period of two (2) weeks. Subsequently, the said interim suspension was extended from time to time.

7. A counter has been filed by respondent No.2 who would submit that subsequent to orders passed in