VIJAI KUMAR SAWHNEY Vs. INDER DEV SAWHNEY

JUDGEMENT

(1.) THE issue involved in this application is with regard to the question of stamp duty on the compromise decree dated 09. 01. 2006. This suit was filed for partition of joint property and pursuant to a compromise and /or settlement between the parties, an application under Order 23 Rule 3 being IA. No. 254/2006 was filed in respect of the suit property bearing No. C-153 Defence Colony, New delhi - 110024. The parties had entered into a Memorandum of Understanding on 18. 01. 2005 wherein it was specifically stated that as per the desire of Mr Vijai kumar Sawhney and his son to sever their rights and ties with the HUF and with a view to settle all the disputes raised in the suit, the parties had arrived at an amicable settlement and that they were signing and executing the said memorandum of Understanding individually, collectively as well as in their capacity as coparceners of the HUF to record the terms of settlement already agreed upon, in writing to avoid any future dispute. Clause 5 of the Memorandum of Understanding also indicated that the second party (Vijai Kumar Sawhney)agrees and undertakes to execute all the requisite documents in respect of the immovable properties, particularly, with regard to the relinquishment deeds in respect of the said property and to get the documents registered before the appropriate authorities to effectuate the settlement agreed upon between the parties.

(2.) ON the basis of the Memorandum of Understanding, the application under order 23 Rule 3 was jointly filed by the parties. Paragraph 2 of the said application also indicated that during the pendency of the suit, the parties had amicably settled their disputes and had recorded the terms of the said settlement already agreed upon in the Memorandum of Understanding dated 18. 01. 2005. Paragraph 4 of the application stated that the plaintiff has voluntarily and willingly desired to irrevocably and for ever absolutely and unconditionally, inter alia, relinquish all his rights, title and interest in the HUF in question and in all its movable and immovable assets including the said property at Defence Colony in favour of the remaining coparceners on payment of Rs 46 lacs, receipt of which was acknowledged by the plaintiff.

(3.) AFTER the passing of the decree, the question was raised by the registry with regard to the stamping of the same. As per the registry, the plaintiff has relinquished his share in the suit property after recovering an amount of Rs 46 lacs from the defendants and, therefore, the decree is liable to be stamped in accordance with Article 45 of the Indian Stamp Act, 1899 read with article 15 thereof. According to the registry, the stamp duty on the separated share @ 2% is payable on the decree and that the amount of stamp duty would come to Rs 92,000/ -.