MUTHOOT EDUCATIONAL TRUST Vs. LAND REVENUE COMMISSIONER

JUDGEMENT

(1.) The short issue to be decided is the stamp duty payable for registration of Exhibit P3 document.

(2.) The petitioner, a Trust, expressed their interest, by way of a tender submitted, for setting up and running of a Campus School in 5.25 Acres of land at INFOPARK Phase II. The petitioner's tender was accepted and the Letter of Allocation was issued at Exhibit P1. The total lease premium was Rs.14,22,75,000/- with taxes as applicable. A security deposit of Rs.64,43,750/- was also to be submitted as Demand Draft, drawn in favour of the Chief Executive Officer. The lease deed was to be executed for 90 years with the Chief Executive Officer, INFOPARK; which was done as per Exhibit P3. Before the deed was registered, the petitioner applied under Section 31 of the Kerala Stamp Act, 1959 [for brevity "Stamp Act"] for determination of the stamp duty payable, as per Exhibit P4.

(3.) The District Registrar, considering the enormity of the consideration passed, referred the matter to the Land Revenue Commissioner. The petitioner was before this Court, since there was delay in considering the issue and in Exhibit P7, a direction was issued directing the Land Revenue Commissioner to pass appropriate orders, which; passed at Exhibit P8 has been impugned herein. The Land Revenue Commissioner in Exhibit P8 found that the total premium is Rs.15,98,60,190/- as evidenced from Exhibit P2 invoice of payment. The maintenance deposit and EMD of Rs.71,13,750/- as seen from the deed was also included in the consideration. Further, it was found that Exhibit P3 agreement permitted development of the leasehold property by way of construction of buildings, which was also leviable to stamp duty as per Article 5(c) of the Stamp Act. Quoting Section 28 of the Stamp Act, it was held that it was mandatory to disclose the full particulars of the transaction in the deed and hence the petitioner was directed to include the estimated cost of the building, for which also stamp duty was directed to be levied.