Sudha Agarwal Vs State of U.P. Thru. Prin. Secy. Stamp and Registration, Deptt. Lko. and Others — Allahabad HC (2025) — LawSathi Research

Sudha Agarwal Vs State of U.P. Thru. Prin. Secy. Stamp and Registration, Deptt. Lko. and Others — Allahabad HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Petition disposed of without entering into merits: petitioner permitted to deposit Rs.5,00,000/- within two weeks with respondent no.3 and pay the balance alongwith interest in eleven equal monthly instalments (instalment amounts to be intimated by respondent no.3 after adjusting sums already paid); penalty of Rs.20,100/- excluded from recovery; default of any instalment renders entire sum forthwith recoverable and forfeits benefit of the order.

Issue for consideration

Whether the order dated 9.3.2024 of the Collector, Lakhimpur (Stamp Case No.691 of 2022) and the appellate order dated 17.2.2025 of the Commissioner, Lucknow Division (Stamp Appeal No.1942/2024), so far as they impose interest and penalty following the Section 47-A determination, are liable to be quashed by writ of certiorari.

Court's answer

Without entering into the merits of the Section 47-A challenge, the Court disposed of the writ petition, directing the petitioner to deposit Rs.5,00,000/- within two weeks with respondent no.3 and to pay the remaining amount alongwith interest in eleven equal monthly instalments.

Ratio / Principle

Default condition: upon failure to deposit or default in payment of any one instalment, the entire sum shall become recoverable from the petitioner forthwith and she shall lose the benefit of the order.

Key takeaways

Clarification on computation: interest is to be calculated considering the stamp-duty and registration-fee deficiencies, while the penalty of Rs.20,100/- shall be excluded and shall not be recovered.ratio¶20

Detailed headnote1 paragraphs

Allahabad High Court, Lucknow Bench (Hon'ble Jaspreet Singh, J.; Order Date 6.5.2025; Neutral Citation 2025:AHC-LKO:26590) in Writ-C No. 4273 of 2025 - Sudha Agarwal v. State of U.P.: Petition for certiorari against (i) Collector, Lakhimpur's order dated 9.3.2024 in Stamp Case No.691 of 2022 and (ii) Commissioner, Lucknow Division's order dated 17.2.2025 dismissing Stamp Appeal No.1942/2024, so far as relating to imposition of interest and penalty under Section 47-A of the Indian Stamp Act (U.P.), wherein stamp-duty deficiency of Rs.20,07,530/-, registration-fee deficiency of Rs.2,86,790/- and penalty of Rs.20,100/- were found recoverable with interest. After counsel for the State voiced no serious objection to an undertaking-based payment, the Court, WITHOUT ENTERING INTO THE MERITS, disposed of the petition directing: deposit of Rs.5,00,000/- within two weeks with respondent no.3; balance with interest in eleven equal monthly instalments (amounts to be intimated by respondent no.3 within a week of the first instalment, after adjusting payments made); penalty of Rs.20,100/- expressly excluded from recovery; default in any single instalment makes the entire sum forthwith recoverable and forfeits the benefit of the order.

Neutral Citation No. - 2025:AHC-LKO:26590

Court No. - 8

Case :- WRIT - C No. - 4273 of 2025

Petitioner :- Sudha Agarwal

Respondent :- State Of U.P. Thru. Prin. Secy. Stamp And Registration, Deptt. Lko. And Others

Counsel for Petitioner :- Manu Saxena,Rajesh Chandra Dixit,Sanjai Srivastava

Counsel for Respondent :- C.S.C.

Hon'ble Jaspreet Singh,J.

Heard learned counsel for the petitioner and learned Additional Chief Standing Counsel for the respondent State.

This writ petition has been filed for issuance of a writ in the nature of certiorari for quashing the impugned order dated 17.2.2025 passed by the Commissioner, Lucknow Division, Lucknow/ opposite party on.2 in Stamp Appeal No.1942/2024 and order dated 9.3.2024 passed by the Collector, Lakhimpur /opposite party no.3 in Stamp Case No.691 of 2022 so far as it relates to the imposition interest and penalty.

Learned counsel for the petitioner has also filed a supplementary affidavit today, which is taken on record.

The impugned proceedings arises under Section 47-A of Indian Stamp Act as applicable in the State of U.P. In the aforesaid proceedings, the petitioner was found deficient of paying stamp duty for a sum of Rs.20,07,530/-. Deficiency in registration fee was noticed to the tune of Rs.2,86,790/- and a penalty of Rs.20,100/- was

also imposed. The aforesaid amount in terms of the provisions of the Act is recoverable alongwith interest.

The petitioner had assailed the order passed under Section 47-A of the Indian Stamp Act dated 9.3.2024 by filing an appeal which also came to be dismissed on 17.2.2025.

It is in the aforesaid backdrop that the petitioner has instituted the present petition. However, after arguing at some length, it is submitted that the petitioner may be permitted to deposit the entire sum alongwith interest (except the penalty of Rs.20,100/-) within a period of one year, in instalments.

Learned counsel for the respondent State submits that this is a liability on the petitioner and he is required to pay the same. However, he does not dispute the fact that since the amount is to be paid alongwith interest within the period of one year, he submits that the State is primarily is interested in recovery of the amount and in case as per the undertaking given by the petitioner on affidavit, if the same is paid, the State may not have any serious objection.

Considering the same and without entering into the merits, the petition is disposed of with a direction to the petitioner to deposit a sum of Rs.5,00,000/- within a period of two weeks from today with the respondent no.3 and the remaining amount shall be paid alongwith interest in eleven equal monthly instalments.

The respondent no.3 shall inform the petitioner about the amount which is to be paid by her in eleven equal monthly instalments, after adjusting the amount already paid including a sum of Rs.5,00,000/- as directed to be paid by this order of this Court. The respondent no.3 shall inform as directed above, within a week from receiving the first instalment of Rs.5 lacs.

It is further clarified that in case if the petitioner fails to deposit or commits default in payment of any one instalment, the entire sum shall be recoverable from the petitioner forthwith and the petitioner shall not be entitled to get the benefit of this order.

It is also clarified that while calculating the interest amount recoverable from the petitioner the deficiency of the Stamp duty and registration fee shall be considered and the penalty of Rs.20,100/shall be excluded as that is not to be recovered.

Order Date :- 6.5.2025

Shukla

Digitally signed by :- ASHUTOSH KUMAR SHUKLA High Court of Judicature at Allahabad, Lucknow Bench