CEEBROS HOTELS PRIVATE LIMITED Vs. STATE OF TAMILNADU

JUDGEMENT

(1.) This writ petition is filed to issue a Writ of Certiorarified Mandamus calling for records on the file of the third respondent in Check Slip No. 1/2016 dtd. 31/3/2016 and quash the same as unconstitutional, illegal, invalid, arbitrary and without jurisdiction and also being contrary to the provisions of the Indian Registration Act, 1908 and Stamp Act and consequently forbearing the Respondents 1 to 3 from initiating any further proceedings thereof.

(2.) The property comprised in Rs. No.1619/1, Block No.50 bearing new No.3, old No.2 situated at Montieth Road, Egmore, Chennai admeasuring 30 grounds and 1800 sq.ft. (hereinafter called as 'subject property') was owned by S.R.Y. Sivarama Prasad Bahadur by the partitiondeed dtd. 8/8/1960. It was allotted to S.R.Y.Padmanaba Prasad Bahadur and sold out by registered sale deed dtd. 15/7/1972 vide document No.3913 of 1972 to M/s.Hotel Atlantic Private Limited. Subsequently, M/s.Hotel Atlantic Private Limited was changed to M/s.Atlantic Hotels Private Limited and amalgamated with S.Chand and Company Limited, S.Chand Hotels Private Limited and S.C.Hotels Tourist Deluxe Private Limited and Shaara Hospitalities Private Limited and S.Chand Properties Private Limited i.e. fourth and fifth respondents herein. The petitioner is being a property developer had negotiations with fifth respondent to purchase the subject property for total sale consideration of Rs.142.00 crores. Accordingly, the petitioner purchased the subject property by the registered sale deed dtd. 19/9/2013 registered vide document No.2308 of 2013 on the file of the third respondent. After purchase, the petitioner was issued patta by the Tahsildar, Egmore.

(3.) Mr.Abdukumar Rajarathinam, the learned counsel for the petitioner would submit that though the first respondent passed a Bill dtd. 31/5/2012 in LA.No.20/2012 as that at present there is no provision in the Indian Stamp Act, 1894(Central Act II of 1899), for levy of stamp duty on transfer of properties made to facilitate amalgamation or reconstruction of companies by the orders of the High Court under Sec. 394 of the Companies Act, 1956 or under the order of the Reserve Bank of India under Sec. 44A of the Banking Regulation Act, 1949 in respect of Banking Companies, the Government have therefore decided to amend the Indian Stamp Act, 1899 so as to provide for levy of stamp duty on the above mentioned transfer of properties to augment the State Exchequer. However, the said Bill has not received Presidential assent and thus it has not come into effect or operation. Therefore, the impugned check slip is null and void, arbitrary, unconstitutional without any proper statutory backing whatsoever.