Case Note & Summary
The petitioners filed a writ petition under Article 227 of the Constitution of India, 1950, challenging an order dated 25.11.2019 that directed them to pay deficit stamp duty and penalty under Article 5(e)(i) of the Schedule to the Karnataka Stamp Act, 1957, based on a District Registrar's order. The dispute centered on an Agreement to Sell dated 05.02.1997 for immovable property. The petitioners argued that possession was delivered prior to the agreement, making Article 5(e)(i) inapplicable, as supported by their amended plaint and coordinate bench judgments. The respondents contended the provision applied due to possession being handed over. The Court analyzed Article 5(e)(i) and (ii), finding that the statute only covers possession delivered/agreed before conveyance or possession not delivered. Since the petitioners' plaint indicated prior possession, the Court held the Impugned Order erroneous, quashed it, and remanded the matter for fresh consideration.
Headnote
The High Court of Karnataka at Bengaluru, in a writ petition under Article 227 of the Constitution of India, 1950, quashed an order directing payment of stamp duty and penalty under Article 5(e)(i) of the Schedule to the Karnataka Stamp Act, 1957 -- The petitioners challenged an order dated 25.11.2019 passed by the I Additional Senior Civil Judge, Chickmagaluru, in O.S.No.34/2017, which arose from a District Registrar's order dated 04.10.2019 -- The Court held that Article 5(e)(i) applies only when possession is delivered or agreed to be delivered before executing the conveyance as part of the agreement -- Since the petitioners claimed possession was delivered prior to the Agreement to Sell dated 05.02.1997, as per the amended plaint, the provision was inapplicable -- The Court relied on coordinate bench judgments and a plain reading of the statute, emphasizing that the statute provides only two options: possession delivered/agreed before conveyance or possession not delivered -- The Impugned Order was set aside, and the matter was remanded for fresh consideration
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Issue of Consideration: The Issue of whether stamp duty under Article 5(e)(i) of the Schedule to the Karnataka Stamp Act, 1957 was applicable to an Agreement to Sell where possession was allegedly delivered prior to the agreement
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Final Decision
The Court quashed the Impugned Order dated 25.11.2019 and remanded the matter to the Trial Court for fresh consideration in accordance with the law
