The court ruled that the registration period suspension due to government orders should be considered when calculating the four-month limitation for registration, reinforcing natural justice principles.

ORDER:

This writ petition is filed under Article 226 of Constitution of India declaring the action of respondent No.2 in issuing the impugned notice dated 19.08.2021 calling upon the petitioners to pay a fine/penalty equivalent to five times of the Registration fee of the two deeds i.e., the Conveyance Deed and Sub-Lease deed dated 29.09.2020 within one month from the date of the notice, without affording the petitioners with a reasonable opportunity of hearing and without considering the request made by the petitioner to exclude the 92 days period of suspension of registrations imposed by respondent No.1, while calculating four months’ period provided under the statute, as illegal, arbitrary, contrary to the principles of natural justice apart from being violative of the rights of the petitioner guaranteed under Article 19(1)(g), Article 14 and Article 21 and set aside the same and consequently direct respondent No.2 to consider the two deeds i.e., the conveyance deed and sub-lease deed dated 20.09.2020 presented by petitioners for registration on 12.03.2021 without insisting on payment of any penalty/fine.

2. The brief facts of the case are that the petitioner No.1 and petitioner No.2 are both represented by its CEO. Petitioner No.1 is a Company incorporated under the Companies Act, 1956 and is part of GMR Group which is leading global infrastructure with various projects in Airports, Energy, Transportation, Urban Infrastructure and in sports and is maintaining the World Class Greenfield International Airport by name Rajiv Gandhi International Airport, Hyderabad.

3. In the year 2003, a land lease agreement dated 30- 09-2003 was executed by the State Government whereby land admeasuring about Ac.5500 has been given on lease by the State Government to the petitioner No.1 for the development of the airport and for other commercial departments for the socio economic growth of the region. Thereafter a Concession Agreement dated 20.12.2004, was executed with Government of India through the Ministry of Civil Aviation, with petitioner No.1 for designing, financing, construction, operation and maintenance of the Airport at Shamshabad, Hyderabad.

4. It is submitted that the provision of Air Cargo Terminal Services is one of the concessions granted under the said agreement. In order to facilitate for providing the Air Cargo Services at Airport, petitioner No.1 constructed Air Cargo Terminal Building (ACT Building). Petitioner No.1 incorporated 2nd petitioner as its wholly owned subsidiary, for providing air cargo services including warehouse handling, build-up and breakdown ULDs, general supervision, tracing and irregularity, management, customs, interface etc., in an efficient manner. As a part of the business requirements, petitioner No.1 executed a conveyance deed dated 29.09.2020, whereby the aforementioned ACT Building was conveyed in favour of petitioner No.2 herein which is its wholly owned subsidiary. Petitioner No.1 also executed a separate sub- lease deed dated 29.09.2020, in respect of the above ACT Building Land with rights to grant sub-lease, sub-sub- lease etc.

5. It is submitted that as per Section 23 of the Registration Act, 1908 (for brevity ‘the Act’ hereinafter) all documents except a Will have to be presented for registration before the concerned Registrar or Sub- Registrar within four (4) months from the date of execution of such document. Further, Section 25 of the Act provides that due to an