K L RAMACHANDRA Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THESE Writ Petitions are filed by Decree-holders in Civil Suits to enforce specific performance of the agreements of sale, calling in question the vires of Section 2 (mm) of the Karnataka Stamp act, 1957 for short 'act', as arbitrary and violative of Article 14 of the constitution of India, and consequential writ of certiorari to quash the notice issued under Section 45-A of the Act, relating to Under Valuation of the instrument of sale and recovery of stamp duty, to direct the respondents to release the Sale Deed, and for a direction that there is no under valuation though the escalation in the value of property is due to delay in litigation.

(2.) SRI Ashok Haranahalli, learned Counsel for the petitioners submit that the reliefs sought for in the writ petitions, when presented, were supported by a decision of a Madras High Court reported in AIR 1997 Mad 296 where, in almost identical circumstances, the parties therein were extended the benefit of payment of stamp duty on the sale consideration, as shown in the agreement of sale. Learned Counsel hastens to add that in the light of the decision of the Apex Court in the case of State of Rajasthan vs. Mis. Khandaka Jain Jewellers reported in AIR 2008 SC 509, there is very little scope for the petitioners to substantiate, their contention.

(3.) IN these writ petitions, the vires of Section 2 (mm) of the Karnataka stamp Act is grounded on the premise that the petitioners paid valuable consideration, under the agreement of sale, for purchase of immovable properties, and when constrained to approach competent Courts of law, after prolonged litigation secured decrees for specific performance of the agreements of sale, whence there was escalation in the market value of the immovable properties, hence cannot be compelled to pay the stamp duty on the market value of the properties on the date of registration and execution of the Sale Deed.