9911796707
TMI Blog2024 (9) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... led on 12.08.2015. On 14.08.2015, the case was posted before the court, and the counsel for the appellant in the trial court agreed to pay proper/sufficient stamp duty and penalty on the certified copy of the agreement to sale. In other words, the appellant invited the court to decide under Section 34(1) of the Act - when the trial court imposed ten times penalty on the deficit stamp duty, the appellant argued in the High Court that he would pay the stamp duty when the decree of specific performance was granted. In our considered view, the case of appellant is covered by Section 34 of the Act, and rightly ten-times penalty is imposed. Further, the appellant having invited the court, cannot now express the willingness to exercise the option ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that the agreement is filed in a connected matter between the parties. From the order dated 14.08.2015, it appears that the appellant expressed readiness to pay duty and penalty on the certified copy of the agreement of sale dated 04.11.1996, now filed along with the plaint. The trial court, by order dated 14.08.2015, held as follows : In respect of penalty on deficit stamp duty is concerned in reported rulings; ILR 2013 KAR 2099 (DB) Degambar Warty and others V/s. District Registrar, Bangalore Urban District and another. Wherein in the above said rulings it is held; No discretion is granted to the Court to impose a lesser penalty. A power is vested in Civil Court to impound the document. In view of the above said settled law, the Civil C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been sent to the District Registrar to determine deficit stamp duty and penalty under Section 39 of the Act, instead of the court deciding under Section 34 of the Stamp Act. The argument is untenable to the facts and circumstances of this case. 5. In Civil Appeal Nos. 10039-40 of 2024 (@ S.L.P. (C) Nos. 7249-50 of 2022), the steps under Chapter IV of the Act have been summarised in paragraph 21 of the Judgement, and reads thus 21.1. Section 33 of the Act is titled examination and impounding of instruments. The object of the provision is to disable persons from withdrawing the instruments produced by them on being told that proper stamp duty and penalty should be paid. 21.1.1. The person who intend to rely on an insufficiently/improperly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts impounded, how dealt with. This Section arises when the party pays the deficit duty and penalty, the Court is to impound the instrument under Section 33 of the Act and has to forward the instrument to the Deputy Commissioner/District Registrar. Sub-section (2) of Section 37 of the Act deals with cases not falling under Section 34 and 36, and the person impounding an instrument shall send it in original to the Deputy Commissioner. This includes the exigencies set out in paragraph 21.1.1. 21.5. Being a regulatory and remedial statute, a party who follows the regulation, and pays the stamp duty and penalty, as per Sections 34 or 39 of the Act, the legal objection emanating from Section 33 of the Act alone is effaced and the document is adm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icit stamp duty and the penalty are substantially covered. Before applying the said summary to the case on hand, the circumstances of the case are adverted to. 7. In the accompanying Civil Appeals, by referring to Section 37(2), we have held as follows: 23. Hence, for the above reasons, the direction to pay ten times the penalty of the deficit stamp duty warrants to be interfered with and accordingly is set aside. The trial court is directed to send the agreement of sale dated 29.06.1999 to the District Registrar to determine the deficit stamp duty and penalty payable. Upon receipt of the compliance certificate from the District Registrar, without reference to an objection under the Act, the suit document is received in evidence. All object ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
