Remanded

Rajiv Tandan and 3 Others v. State of U.P. Thru. Dist. Magistrate Lko 2 Others

Allahabad HC26 Sept 2024WRIC/8385/2024

Case brief

AI extract

What is this about?

In a writ petition, petitioners challenged the auction of their properties allegedly liable for stamp duty deficiency of the previous owner. The court restrained the auction of these specific properties while permitting recovery from other properties of the defaulting owner pending further proceedings.

What did the court decide?

Restrained respondents from auctioning petitioners' properties; directed to proceed against other properties of the defaulting owner.

Rajiv Tandan and 3 Others vs State of U.P. Thru. Dist… — Property and Title | Allahabad HC (2024)

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Court No. - 3

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Case :- WRIT - C No. - 8385 of 2024

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Petitioner :- Rajiv Tandan And 3 Others Respondent :- State Of U.P. Thru. Dist. Magistrate Lko 2 Others

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Counsel for Petitioner :- Ram Ji Das,Neeraj Awasthi,Vishnu Pad Das Counsel for Respondent :- C.S.C.

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Hon'ble Mrs. Sangeeta Chandra,J. Hon'ble Brij Raj Singh,J.

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(1) Heard the learned counsel for the petitioners and Shri Rajesh Tiwari, the learned Additional Chief Standing counsel who appears for the State-respondents nos.1 & 2.

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(2) This petition has been filed by the petitioners for the following prayers:-

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"i) to issue a writ, order or direction in the nature of Mandamus directing the opposite parties nos.1 and 2 to not to put the petitioners' properties to auction.

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ii) to issue such other, suitable orders as this Hon'ble Court may deem fit and proper in the circumstances of the case."

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(3) It is the case of the petitioners that the Opposite party no.3 one Prem Sagar Gupta, had purchased certain properties bearing No.31/82, popularly known as "Jehangirabad Mansion" situated at Mahatma Gandhi Marg, Hazratganj, Lucknow, from its erstwhile owner namely Raja Mohd. Jamal Rasool Khan through two separate Sale Deeds on 05.05.1989 which were registered in the office of Sub-Registrar, Mumbai. The Opposite party no.3 transferred part of the Ground Floor of the said property to the petitioners through Sale Deeds executed on 31.01.1989, 04.11.1989, 06.08.1989, 04.08.1989 and 24.02.1992 and the petitioners have got their respective properties assessed to tax with Nagar Nigam and paying House Tax regularly. A case for deficiency of Stamp Duty was registered against Opposite party no.3 and it was decided by the Collector Lucknow, on 21.11.1997 imposing a deficiency of Rs.1,62,77,908/upon the two Sale Deeds executed in favour of the Opposite party no.3 by the erstwhile owner of

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"Jehangirabad Mansion".

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(4) Aggrieved by such order of the Collector dated 21.11.1997, the Opposite party no.3 preferred a Revision before the Chief Controlling Revenue Authority (CCRA) at Allahabad, the Revision was dismissed by an order dated 06.08.2001. Being aggrieved by the orders dated 21.11.1997 and 06.08.2001, the Opposite party no.3 preferred a writ petition before this Court namely Writ Petition No.2452 (M/S) of 2001 [ Prem Sagar Gupta Vs. State of U.P. and others ]. During the pendency of such writ petition, the Opposite party no.3 with malicious intent moved an application before this Court saying that he is not in a position to pay the Government Dues and requesting that the State Government should proceed to auction the property and recover the dues. The Court was pleased to allow such application by its order dated 19.04.2024, a copy of such order dated 19.04.2024 has been filed as Annexure-8 to the petition. At the time when the petitioners had purchased the property no proceedings were pending for recovery of deficiency of Stamp Duty. However, after dismissal of the writ petition on 19.04.2024 by making a mention therein that in view of the reasons indicated in the affidavit filed in support of application, the petition is dismissed as withdrawn, the Respondents are proceedings to auction the property belonging to the petitioners. The petitioners have approached the A.D.M., Finance and Revenue, by way of an application on 05.09.2024 mentioning all facts therein that at the time when the petitioners had purchased the property there was no adjudication of deficiency of Stamp Duty.

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(5) It has been argued by the learned counsel appearing on behalf of the petitioners that the deficiency of Stamp Duty, if any, as indicated in the order passed by the Collector, Lucknow, in 1997 and by Chief Controlling Revenue Authority in 2001 related to Sale Deeds executed by the erstwhile owner in favour of the Opposite party no.3- Prem Sagar Gupta and Stamp Duty is always relatable to the instrument and not to the property. The instrument, the two separate Sale Deeds by which the property was purchased by the Opposite party no.3 on 05.05.1989 have been adjudged to be deficient E-Stamp. The petitioners being bonafide purchasers cannot be saddled with the liability which entirely is upon the Opposite party no.3, Prem Sagar Gupta. It has also been informed to us orally that the Opposite party no.3 has several properties from which such deficiency of Stamp

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Duty can be recovered and the property of the petitioners cannot be sold in auction for liability which is legally upon the Respondent no.3.

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(6) The Counsel for the Respondents has pointed out the Clause-G of Paragraph-1 of one of the Sale Deeds which the Opposite party no.3 has executed. Out of five Sale Deeds that have been filed as Annexures to the petition, it has been mentioned therein that all Taxes, Charges and Dues in regard to the property sold, upto the date of the execution of the Sale Deed, shall be paid and borne by the vendors and in case the purchasers have to pay any arrears of Taxes, Charges or Dues found existing upto the date of execution of the Sale Deeds in respect of the property sold, the liability of payment of which is of the vendors under the Deed, and from the date of execution of the Sale Deed onwards, he shall be borne by the purchasers.

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(7) It has been argued by the learned counsel appearing on behalf of the Respondents that the liability to pay Stamp Duty is upon the vendees as such liability was fixed in 1997 and in 2001 that is after the Sale Deed was executed by the Respondent no.3 in favour of the petitioners.

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(8) We are not convinced. Prima Facie , the matter requires consideration.

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(9) Issue notice to the Opposite party no.3- Prem Sagar Gupta.

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(10) The petitioners shall take steps both ways within a week and file an affidavit of service within two weeks.

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(11) List this matter on 24.10.2024.

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(12) Till the next date of listing, the Respondents may proceed against other properties of Opposite party no.3Prem Sagar Gupta, for recovery of their dues in terms of the orders passed against him in 1997 and 2001 but shall not proceed to auction the properties belonging to the petitioners as mentioned in the Five Sale Deeds as aforesaid.

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Order Date :- 26.9.2024 N.PAL

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Digitally signed by :- NARESH PAL High Court of Judicature at Allahabad, Lucknow Bench

Rajiv Tandan and 3 Others v. State of U.P. Thru. Dist. Magistrate Lko 2 Others

Case brief

What is this about?

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Rajiv Tandan and 3 Others v. State of U.P. Thru. Dist. Magistrate Lko 2 Others

Case brief

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What did the court decide?

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