SC held that the agreement to sell constituted a conveyance ...

Agreement to Sell with Possession Transfer Clause Attracts Full Stamp Duty Under Article 25 Schedule I

February 20, 2025

Case Laws     Indian Laws     SC

SC held that the agreement to sell constituted a conveyance under Explanation I to Article 25 of Schedule I of Bombay Stamp Act, requiring full stamp duty payment. Despite the property being occupied on rental basis, the agreement's clause regarding possession transfer satisfied requirements for treating it as a conveyance. The appellant's possession, evidenced by pending litigation for specific performance and eviction, established liability for stamp duty. The Court upheld lower courts' orders to recover deficit duty and penalty, with the provision that any previously paid stamp duty would be deducted from future sale deed duty calculations. The appeal was dismissed, affirming that possession, whether current or promised, triggers stamp duty obligation.

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