Chennai: Holding that registration of documents under the Stamp Act was not only proof of ownership but also an important source of income, the Madras High Court said it expected the legislature to effect suitable amendments to the Registration Act.
The court made the observation while allowing a writ
petition challenging a July 29 order by a Sub-Registrar of
Erode district directing M/s Shree Vijayalakshmi Charitable
Trust to pay Rs 10.39 lakh as deficit stamp duty for
registering a sale certificate issued by a court appointed
official liquidator for over 59.25 acres of land purchased for
over Rs 1.73 crore in the district.
Justice N Kirubakaran pointed out that the state had lost
Rs 10.39 lakh as a result of the exemption under Section
17(2)(XII) and Section 89 of the RA.
Noting that suitable steps should be taken to plug the
loopholes in the Act, the Judge said "this court hopes that
this case will be an eye opener and expects the
legislature/parliament to bring suitable amendments in section
17 and 18 of the Registration Act."
Assuming that the exemption of stamp duty for purchase of
property through the court was incorporated in the 1908 Act as
people might not have shown interest to purchase court
auctioned property "as it was considered to be a distress
sale," the Judge said people were no longer fighting shy to
purchase property through court auction.
"In fact there has been a heavy competition to buy the
court auctioned properties. Hence the concession which was
believed to have been given by the policy makers during the
enactment of the Act is no more necessary," the Judge pointed
out and quashed the impugned order.
Bureau Report
