Case Note & Summary
The Bombay High Court at Nagpur, through a division bench comprising Justices Anil S. Kilor and Rajnish R. Vyas, dismissed two writ petitions challenging the levy of stamp duty on the renewal of a perpetual lease under Article 36 of the Maharashtra Stamp Act, 1958. The petitioners, Tejomay Apartments Condominium (WP No. 8048/2022) and New Ramdaspeth Griha Nirman Sahakari Sanstha Limited & M/s. Green India Infra (WP No. 761/2023), sought declarations that the levy was manifestly arbitrary and violative of Articles 14 and 300A of the Constitution, and sought refunds of stamp duty paid. The court held that the renewal of a perpetual lease is a separate instrument creating new rights and obligations, and the legislature has the power to impose stamp duty on such renewals. The levy was found to be neither arbitrary nor unconstitutional. The petitions were dismissed, and the rule was discharged with no order as to costs.
Headnote
A) Constitutional Law - Article 14 - Manifest Arbitrariness - Levy of stamp duty on renewal of perpetual lease - The court held that the levy of stamp duty on renewal of a perpetual lease under Article 36 of the Maharashtra Stamp Act, 1958 is not manifestly arbitrary as the renewal is a separate instrument creating new rights and obligations, and the legislature has the power to impose such duty. (Paras 1-10) B) Constitutional Law - Article 300A - Right to Property - Levy of stamp duty on renewal of perpetual lease - The court held that the levy of stamp duty on renewal of a perpetual lease does not violate Article 300A of the Constitution of India as it is a valid exercise of taxing power by the State, and the petitioners have no vested right to avoid payment of stamp duty on renewal. (Paras 1-10) C) Stamp Law - Article 36 - Maharashtra Stamp Act, 1958 - Renewal of perpetual lease - The court held that the renewal of a perpetual lease is a distinct instrument liable to stamp duty under Article 36 of the Maharashtra Stamp Act, 1958, and the petitioners are not entitled to refund of stamp duty paid. (Paras 1-10)
Issue of Consideration
Whether the levy of stamp duty on renewal of a perpetual lease under Article 36 of the Maharashtra Stamp Act, 1958 is manifestly arbitrary and violative of Articles 14 and 300A of the Constitution of India.
Final Decision
Both writ petitions are dismissed. Rule discharged. No order as to costs.
Law Points
- Stamp duty on renewal of perpetual lease is valid
- Article 36 Maharashtra Stamp Act 1958 is not arbitrary
- No violation of Articles 14 and 300A
- Renewal is a separate instrument
- Lease renewal creates new rights
