The High Court of Karnataka, in a writ petition under Article 226, dismissed the plea to quash an order directing payment of Rs.17.60 lakhs as stamp duty and penalty for agreements treated as conveyances under the Karnataka Stamp Act.
Period of three months granted to pay the deficit stamp duty and penalty.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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IN THE HIGH COURT OF KARNATAKA, BENGALURU
DATED THIS THE 14TH DAY OF SEPTEMBER, 2021
BEFORE
THE HON'BLE MR. JUSTICE KRISHNA S.DIXIT WRIT PETITION NO.3648 OF 2020(GM-CPC)
BETWEEN:
MR.M.S.A.ALEEM, S/O LATE SYED ABBAS, AGED ABOUT 69 YEARS, SENIOR CITIZENSHIP NOT CLAIMED RESIDING AT NO.36, D COSTA SQUARE, 2ND CROSS, COOKE TOWN, THOMOS TOWN P.O BANGALORE - 560 084. ALSO CHAIRMAN OF FLORA SILKS LTD., NO.345.1 TELUGARAHALLI MAIN ROAD, ANEKAL BENGALURU DISTRICT - 562 106.
… PETITIONER
(BY SRI. VISHWANATH H M, ADVOCATE)
AND:
S/O LATE CHOWRAPPA, AGED ABOUT 79 YEARS, RESIDING AT ANEKALGRAMA, ANEKAL TALUK, BEHIND FLORA SILK LIE., BANGALORE DISTRICT - 562 106.
… RESPONDENTS (BY SRI. RAJENDRA K R, ADVOCATE FOR R1 & R2)
THIS WRIT PETITION IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE
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IMPUGNED ORDER DATED 26.03.2019 IN O.S.NO.513/2007 ON THE FILE OF THE SENIOR CIVIL JUDGE AND JMFC, ANEKAL RURAL DISTRICT BANGALORE DIRECTING THE PETITIONER TO PAY DUTY AND PENALTY OF RS.17.60.000/- AS ILLEGAL, ARBITRARY AND WITHOUT JURISDICTION VIDE ANNX-E.
THIS PETITION HAVING BEEN HEARD AND RESERVED FOR ORDER, THIS DAY, THE COURT PRONOUNCED THE FOLLOWING:
ORDER
Petitioner being the plaintiff in a Specific Performance suit in O.S.No.513/2007, is knocking at the doors of Writ Court for assailing the order dated 26.3.2019, a copy whereof is at Annexure-E whereby the learned Sr. Civil Judge, Anekal, having found the subject Agreements of Sale dated 8.8.1995 & 15.10.2004, as being inadequately stamped, has directed him to pay the deficit stamp duty along with penalty together quantified at Rs.17,60,000/-.
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grant indulgence in the matter inasmuch as the agreement is coupled with delivery of possession of the subject property and therefore, the same needs to be treated as a conveyance itself under Article 5(e)(i) which in turn refers to Article 20 of the Schedule to the Karnataka Stamp Act, 1957; what the learned Judge has done is that he had referred the subject documents to the jurisdictional Sub-Registrar for valuation and has acted upon his report after hearing both the sides; this cannot be faltered.
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treated in R.P.No.340/2019, decided this day; it has been held therein that the Courts do not have discretion to waive or reduce the amount of penalty which has to be only ten times the deficit stamp duty as legally prescribed; what has been held in the said R.P equally applies to this case, as well.
In the above circumstances, this Writ Petition being devoid of merits, is dismissed; however, petitioner is granted a period of three months to pay the deficit stamp duty along with the penalty, if already not paid.
No costs.
Sd/JUDGE
Snb/cbc
1 issue framed by the court
Whether the High Court should grant indulgence to quash an order directing payment of deficit stamp duty and penalty for agreements coupled with possession.
2 provisions across 1 enactments
M.S.A.Aleem
Rajappa
Shivashankar Reddy
Krishna S.Dixit
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
