Notices for deficit stamp duty issued beyond the statutory period under Section 41(A) are invalid.

ORDER

The present writ petition is filed to declare the action of respondent No.4 in issuing notice bearing No.5796/G1/2011 dated 18.03.2011; Notice No.5796/G1/2011 dated 23.05.2011 and Notice No.G1/5796/2011 dated 01.08.2011 demanding payment of deficit stamp duty on the sale deed bearing Doc.No.79/2006 dated 07.01.2006, having collected deficit stamp duty on 07.01.2016 itself, after expiry of 5 years period as provided under Section 41(A) of the Indian Stamp Act, 1986 is arbitrary and illegal and set aside the same.

2. The brief facts of the case are that petitioner has entered into an agreement of sale on 17.08.1998 with B.Shankar S/o. Late B.Viswanatham in respect of house bearing No.1-8-396, 1-8-399 and 1-8-400 admeasuring 203.17 sq.yds., situated at Chikkadpally, Hyderabad. It is further submitted that petitioner has paid a part of entire sale consideration and the agreement was concluded and the vendors has delivered the original title deeds and other link documents. However, the vendor of the petitioner did not execute the sale deed though the petitioner was ready and willing to perform the contract.

3. As the vendors of the petitioner did not execute the sale deed, the petitioner was constrained to issue legal notice on 01.06.1999 calling upon the vendors to execute the sale deed. When the vendor did not reply to the same, petitioner has filed a suit in O.S.No.462/2000 on the file of IX Additional Chief Judge, City Civil Court, Hyderabad, for specific performance and the said suit was decreed in favour of the petitioner and the learned Trial Court Judge directed defendant Nos.1 and 2 therein i.e., the vendors of the petitioner to execute a sale deed in favour of the petitioner within a period of 30 days after receiving the balance sale consideration failing which the plaintiff was granted liberty to deposit the balance sale consideration into Court and obtain a regular sale deed through process of the Court.

4. Even after the above said directions, the vendors of the petitioner did not execute the sale deed and that petitioner was constrained to file Execution Petition bearing E.P.No.4 of 2006 before Additional Chief Judge cum Fast Track Court, CCC, Hyderabad and the learned Additional Chief Judge allowed the said E.P., and a sale deed was executed through Court on 02.05.2005 and the said document was sent to the Sub-Registrar for registration in favour of petitioner by collecting stamp duty and registration fee and transfer fee etc.

5. It is further submitted that originally the sale deed was registered on 07.07.2005 and was kept pending vide P.No.33/2005 and stamp duty of Rs.39,800/- has been collected from the petitioner as per the endorsement made by the Sub-Registrar under Indian Stamp Act, 1899. Later, again on 07.01.2006, deficit stamp duty of Rs.32,100/- was collected from the petitioner as per endorsement made by Sub-Registrar under Sections 41 and 42 of the 1899 Act and the document was registered bearing Doc.No.79 of 2006 dated 07.01.2006. As per the said endorsement under Sections 41 and 42, the petitioner has certified that the stamp duty has been paid based on the agreed market value/consideration of Rs.8,00,000/-.

6. Thereafter, the Execution Court vide order dated

18.07.2007 in E.P.No.4 of 2006 directed the Court bailiff to execute the warrant of delivery of possession by breaking open the locks of the schedule property and accordingly the bailiff has executed the warrant and delivered the possession of the subject property to the petitioner. Thereafter, the District Registrar/respondent No.4 issued notices on 18.03.2011, 23.05.2011 and 01.08.2011 stating that there was a deficit stamp duty to be collected by Sub- Registrar at the time of registration. The petitioner has replied to the said letter on 02.04.2011 requesting respondent No.4 to furnish the detailed particulars as to how the stamp duty was determined. Thereafter, the petitioner was issued with one more notice as was sent on 18.03.2011 and withou