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Issues:
Interpretation of whether a document is an agreement for sale or a conveyance of immovable property. Application of stamp duty and penalty on insufficiently stamped documents. Analysis: 1. The case involved a dispute regarding the nature of a document related to the purchase of a plot of land and the stamp duty applicable. The petitioner was asked to pay additional stamp duty and penalty by the Deputy Collector, contending that the document was wrongly described as an agreement for sale instead of a conveyance of property. The petitioner challenged this decision through a writ petition. 2. The court analyzed the document in question and highlighted clauses indicating it was an agreement for sale, not a conveyance. The agreement specified the process for registering a sale deed in the future, the expenses to be borne by the purchasers, and the transfer of possession without conveying freehold rights. The court emphasized the legal distinction between an agreement for sale and a conveyance under relevant sections of the Indian Registration Act and the Transfer of Property Act. 3. The court determined that the document did not create any immediate interest or charge on the property, merely granting the right to obtain a sale deed in the future. Possession and consideration alone do not complete a sale of immovable property. Referring to precedents from Nagpur and Delhi High Courts, the court reiterated that an agreement labeled as such should be treated as such unless it explicitly conveys property rights. 4. The court considered an amendment to the Bombay Stamp Act, which deems an agreement to sell as a conveyance if possession is transferred without executing a conveyance deed. However, this amendment was not applicable retroactively to the case. The court emphasized that the amendment did not erase the distinction between an agreement for sale and a conveyance, maintaining that stamp duty should be levied accordingly based on the nature of the document. 5. Consequently, the court set aside the Deputy Collector's order demanding stamp duty and penalty, as the document was deemed an agreement for sale, not a conveyance. The petitioner's deposited amount was to be refunded, with a two-month deferral requested by the respondents. The court made no order regarding costs, concluding the judgment.
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