Case Note & Summary
The petitioner, Manjeet Singh, filed a writ petition before the Bombay High Court seeking a refund of stamp duty paid under a mistake of law. The petitioner had signed a letter of allotment for purchase of a flat on 07.07.2012 and intended to pay stamp duty on the Agreement for Sale. On 23.03.2018, he purchased electronic stamps of the value of Rs. 3,00,100/-. However, while purchasing the stamps, he committed an error in selecting the Scheme Code: instead of selecting 'non-judicial stamps', he incorrectly selected 'consolidated stamp duty and Superintendent of Stamps'. Due to this error, the petitioner could not execute the Agreement for Sale or get it registered. Upon realizing the mistake, he filed an application with the Collector of Stamps, Borivali, seeking a refund of the amount. The Collector rejected the application on the ground that the mistake was one of law and not of fact, and that the refund was not permissible under the Maharashtra Stamp Act, 1958. The petitioner then approached the High Court. The court heard arguments from both sides. The petitioner's counsel argued that the mistake was bona fide and that the authorities should not reject the refund on hyper-technical grounds. The respondent's counsel opposed the petition, relying on the Collector's affidavit. The High Court held that the mistake was indeed a mistake of law, but that did not automatically bar a refund. The court noted that the electronic stamps were not used and that the petitioner had not benefited from them. The court directed the Collector to decide the refund application afresh within four weeks, considering the petitioner's explanation and the fact that the stamps were not used. The court also observed that the authorities should not be hyper-technical in such matters. The petition was disposed of with these directions.
Headnote
A) Stamp Duty - Refund - Mistake of Law - Section 48 of Maharashtra Stamp Act, 1958 - Petitioner purchased electronic stamps of Rs. 3,00,100/- on 23.03.2018 but selected wrong scheme code, rendering stamps unusable for intended Agreement for Sale - Court held that the mistake was a mistake of law and not of fact, and that the authorities must consider the refund application on merits, not reject it on hyper-technical grounds - Held that the Collector must decide the refund application afresh within four weeks, considering the petitioner's explanation and the fact that the stamps were not used (Paras 1-10).
Issue of Consideration
Whether the petitioner is entitled to a refund of stamp duty paid under a mistake of law when the electronic stamps were purchased under an incorrect scheme code and could not be used for the intended purpose.
Final Decision
The High Court allowed the petition and directed the Collector of Stamps, Borivali to decide the refund application afresh within four weeks, considering the petitioner's explanation and the fact that the stamps were not used. The court held that the mistake of law does not automatically bar a refund when the stamps are not used and there is no unjust enrichment.
Law Points
- Refund of stamp duty
- mistake of law
- Section 48 of Maharashtra Stamp Act
- 1958
- electronic stamps
- non-judicial stamps
- consolidated stamp duty
- limitation period
- unjust enrichment
