Case Note & Summary
The petitioner, V. H. Property Solution LLP, executed a Deed of Conveyance on 06.10.2015 and presented it to the Stamp Duty Authorities on 10.12.2015, which was within the four-month period prescribed under Section 23 of the Registration Act, 1908. The document remained pending for adjudication of stamp duty before the Collector of Stamps from 10.12.2015 until 05.01.2024, when the adjudication order was passed and served on the petitioner on 05.02.2024. The petitioner then participated in an Amnesty Scheme, paid the entire stamp duty on 04.03.2024, and on 20.03.2024 submitted a letter seeking registration of the deed. However, by an order dated 27.03.2024, the Joint Sub-Registrar, Kurla-4, Mumbai, refused registration on the ground that the document had to be presented for registration within four months from execution, extendable by another four months on payment of penalty under Section 25, and that period had expired. The petitioner challenged this refusal by way of a writ petition under Article 226 of the Constitution of India. The court examined the rival contentions. The petitioner argued that the time taken by the stamp authorities for adjudication should be excluded, relying on the Division Bench judgment in Nestor Builders & Developers (P) Ltd. v. State of Maharashtra. The respondents contended that the document could not be registered as the limitation period under Sections 23 and 25 had expired. The court noted that the document was presented to the stamp authorities within the initial four-month period and that the delay was solely due to the time taken by the stamp authorities for adjudication. The court held that such time must be excluded, following the precedent in Nestor Builders. The court also observed that the respondents' suggestion to execute a confirmation deed was not a proper remedy. Accordingly, the court quashed the impugned order dated 27.03.2024 and directed the respondents to register the deed within two weeks from the date of the order, subject to compliance with other legal requirements.
Headnote
A) Registration Act - Limitation for Presentation - Exclusion of Adjudication Time - Sections 23, 25 Registration Act, 1908 - The court considered whether time spent before stamp authorities for adjudication of stamp duty should be excluded from the limitation period for presenting a document for registration. The petitioner executed a deed on 06.10.2015, presented it to stamp authorities on 10.12.2015 (within 4 months), adjudication completed on 05.01.2024, and thereafter sought registration. The Joint Sub-Registrar refused registration on 27.03.2024 citing expiry of 4+4 months under Sections 23 and 25. The court held that the time taken by the stamp authorities for adjudication must be excluded, following the Division Bench judgment in Nestor Builders & Developers (P) Ltd. v. State of Maharashtra, and directed the respondents to register the deed within two weeks (Paras 1-8).
Issue of Consideration
Whether the time taken by the Collector of Stamps for adjudication of stamp duty is required to be excluded while computing the period of limitation for presenting a document for registration under Sections 23 and 25 of the Registration Act, 1908
Final Decision
The court quashed the impugned order dated 27.03.2024 and directed the respondents to register the Deed of Conveyance within two weeks from the date of the order, subject to compliance with other legal requirements.
Law Points
- Time taken by stamp authorities for adjudication must be excluded for computing limitation under Registration Act
- 1908
- Sections 23 and 25
- Amnesty Scheme participation does not reset limitation period
- Registration Act and Stamp Act are independent but time for stamp adjudication is excluded for registration purposes
