A. G. NEURO HOSPITALS (P) LTD Vs. INSPECTOR GENERAL OF REGISTRATION AND CHIEF CONTROLLER OF REVENUE AUTHORITY

JUDGEMENT

(1.) Challenging the order of the first respondent / Inspector General of Registration, in fixing the stamp duty for assignment of mortgage as per Article 23 of Schedule-I to Indian Stamp Act, 1899, dated 25.04.2008, the appellant has preferred the above appeal.

(2.) According to the appellant, one ASA John Diviyanathan borrowed a sum of Rs.35,00,000/- from the Egmore Benefit Society Limited and executed a Mortgage Deed registered as Document No.1005/1995 at the Office of the Sub Registrar, Sooramangalam, Salem. The creditor insisted for repayment of principal and interest to the tune of Rs.1,37,70,033.15. It appears that the borrower had entered into an Understanding with the appellant and requested him to get the Mortgage assigned in his favour and also an agreement to sell the property to the appellant. Accordingly, the appellant got the Mortgage assigned in his favour by a Deed of Assignment of Mortgage dated 26.06.2003. When the said instrument was presented for registration, the second respondent demanded deficit stamp duty at Rs.7,99,900/- and penalty of Rs.50,000/-. He had referred the matter to the Deputy Inspector General of Registration for clarification wherein the document was directed to be treated as one of "Conveyance" chargeable to duty under Article 23 of Schedule I to the Indian Stamp Act, 1899 (8% on One Crore). Aggrieved over the order passed by the second respondent, the appellant has preferred an appeal to the first respondent. The contents of the order passed by the first respondent dated 25.04.2008 reads as under:

(3.) According to the appellate authority, the assignment of debt is different from transfer of mortgage. As regards transfer of registered mortgage, duty is chargeable under Article 62(c) and assignment of debt obtained by promissory note and deposit of title deed is chargeable as "Conveyance" under Article 23 of Schedule I to the Indian Stamp Act, 1899 (Shortly "the Act"). Since there was no break up between the assignment and conveyance, the first respondent passed the above order treating the document as one of "Conveyance" chargeable to duty under Article 23 of Schedule - I to the Indian Stamp Act, 1899.