HOOVINA HUKLU ESTATES Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THE petitioner Hoovina huklu Estates is a registered partnership firm. The firm represented by all the partners purchased several items of agricultural lands and coffee estates under a registered sale deed dated 27-11-1972 Annexure B from one D C Kothari and his family members. Later, on account of differences among the partners, the firm was dissolved by a deed of dissolution dated 15-11-1995. This dissolution Deed was presented for registration by paying a stamp duty of Rs. 500/ -. The Sub-Registrar holding that since the dissolution deed has the effect of transferring immovable property from one partner to another, directed the petitioners to pay proper stamp duty of Rs. 6,74,500/- on the market value of the property assessed at Rs. 67,50,000/- as per Article 40c (a) of the Stamp Act. This order was questioned by filing an appeal before the 2nd respondent herein. The 2nd respondent has dismissed the appeal. These two orders are under challenge.

(2.) THE contention of Sri Nanjundaswamy. learned counsel for petitioner before this court is that, both the Sub-Registrar and the Appellate Authority have misconstrued the relevant Article of the Stamp Act while making a demand. According to the learned counsel, proper stamp duty payable for registration of dissolution of partnership is as per Art. 40 C (b) of the Stamp Act which is only Rs. 500/- and not what has been demanded by the Sub-Registrar.

(3.) PER contra, learned Government Advocate defended the order.