J S PARAMESH SIDDRGOWDA Vs. INDRAMMA V MURTHY

JUDGEMENT

(1.) THE challenge in the writ petition is against Annexure-A order dated 11-12-2007 passed by the learned Civil Judge (Sr. Dn.) and Addl. CJM, arsikere in O. S. No. 13/2006. As per the impugned order, the plaintiff is directed to pay duty and penalty of Rs. 2,10,000/- on the document produced as Ex. P1 before the trial Court. The plaintiff is granted one month time to pay the amount. The grievance of the petitioner is that the trial Court while imposing the penalty, imposed ten times the amount of the deficient portion of the proper duty. According to the petitioner, the trial Court had a discretion to impose a maximum of ten times of the deficient portion of the proper duty or a lesser amount. It is contended that the trial Court ought to have exercised such discretion and imposed a lesser amount as penalty. When the writ petition came up before the learned single judge, learned counsel for the petitioner relied on an observation made by another learned single Judge in the order dated 8-12-2005 passed in Writ Petition No. 43172/2004. In the said order dated 8-12-2005, the learned single Judge observed that the penalty amount will be a maximum of ten times of the stamp duty payable and that the maximum amount of ten times does not necessarily mean that the Courts have to impose the maximum penalty payable. Since the learned single Judge could not agree with the above observation in the order passed in Writ Petition No. 43172/2004, the writ Petition has been referred to the Division Bench.

(2.) WE have heard learned counsel for the petitioner.

(3.) THE impugned order was passed by the trial Court in exercise of the power under the proviso to Section 34 of the karnataka Stamp Act, 1957. According to clause (a) of the said proviso when the amount of the proper duty or deficient portion thereof exceeds five rupees, the penalty to be imposed is a sum equal to ten times such duty or portion. There is no discretion granted to the Court to impose a lesser penalty. Hence the observation contained in the order dated 8-12-2005 in Writ petition No. 43172/2004 that the Courts have the power to impose as penalty a lesser amount than ten times the amount of proper duty or deficient portion is not correct. The observation is contrary to the clear provisions contained in the proviso to Section 34 of the Karnataka Stamp Act, 1957.