2022 (11) TMI 218 - Tri - Insolvency and Bankruptcy

Leave to either impound itself the transfer deeds and collect the appropriate stamp duty alongwith the penalty, if any, or otherwise may refer the instruments Transfer Deed (Form 7B) - collection of the deficit stamp duty and penalty by impounding the same - transfer deeds properly stamped or not - HELD THAT - A duty is cast upon the judge irrespective of the fact whether any objection, it's marking is raised or not to examine whether the instrument is stamped properly or not. The court should not depend on the objections on the other counsel before considering whether the document is admissible in evidence or not. While holding that the objections, if any, from either side as regards to admissibility of Exhibit R-3, (but not its proof) cannot be gone into as Exhibit-R3 has been marked without any objection, the power under Section 33 of the Indian Stamp Act is invoked - application dismissed.

Summary

Issues:
1. Application for leave to impound transfer deeds and collect stamp duty.
2. Proper stamping of transfer deeds under the Indian Stamp Act.
3. Consideration of deficit stamp duty and penalty by the Tribunal.
4. Adjudication of stamp duty under Sections 31 to 34 of the Indian Stamp Act.
5. Admissibility of documents marked without objection.
6. Legal obligations of the court under Section 33 of the Indian Stamp Act.

Analysis:
1. The application filed by the company sought permission to impound transfer deeds and collect appropriate stamp duty along with penalties or refer the deeds to the District Registrar/Collector for stamp duty collection. The issue raised was the proper stamping of transfer deeds under the Indian Stamp Act, specifically Section 33, which allows for impounding deficiently stamped documents by the relevant authority.

2. The Tribunal considered Sections 31 to 34 of the Indian Stamp Act, which outline the adjudication process for determining the proper stamp duty on instruments. The application highlighted the oversight in stamping the Original Transfer Deed (Form 7-B) and the willingness of the petitioner to pay the deficit stamp duty and penalties. The Respondent contended that the transfer deeds were void ab initio, leading to a debate on the sufficiency of stamping as per the Act.

3. The Tribunal analyzed the admissibility of documents marked without objection, emphasizing that once a document is admitted in evidence without objection, issues related to stamping cannot be raised subsequently. Citing relevant legal precedents, including a Supreme Court ruling, the Tribunal clarified that the admission of a document in evidence precludes questioning the stamping at a later stage.

4. The judgment highlighted the legal obligations of the court under Section 33 of the Indian Stamp Act, emphasizing the duty of the court to examine documents for proper stamping, regardless of objections raised during proceedings. The court's obligation to impound documents that are insufficiently stamped, even if admitted in evidence, was underscored through various judicial decisions cited in the judgment.

5. Ultimately, the Tribunal dismissed the application, stating that objections related to the admissibility of the document cannot be entertained once the document is marked without objection. The Tribunal invoked its power under Section 33 of the Indian Stamp Act to impound the document and directed it to be dealt with as per Section 39 of the Act, emphasizing the court's duty to ensure proper stamping of instruments presented as evidence.