DISTRICT REGISTRAR REGISTRATION DEPARTMENT Vs. M SHANMUGASUNDARAM

JUDGEMENT

(1.) The appeal is preferred by the Registration Department aggrieved by the order dated 15.04.2014 made in W.P(MD)No.16357 of 2012.

(2.) The writ petitioner is one Tamil Nadu Sri Narayana Guru Industrial Training Institute, Avaniyapuram represented by its President. It is stated in the affidavit that the said Industrial Training Institute originally belonged to Tamil Nadu Sri Narayana Guru Trust which was registered on 24.04.1985. The said Industrial Training Institute was transferred to Tamil Nadu Illathu Pillaimar Sangam on 18.01.2006. It is further stated that Illathu Pillaimar Sangam itself is one of the trustees of the Sri Narayana Guru Trust. The said transfer deed was kept pending for registration. As the appellants treated it as sale deed and demanded payment of stamp duty, a representation was sent on 30.09.2011 contending that the said transfer would come under the purview of Article 62(e) of the Indian Stamp Act, 1899 as it is a transfer of a trust property from one trustee to another trustee. It was further stated that the trust deed is very clear that Illathu Pillaimar Sangam is Managing Committee Trustee of Sri Narayana Guru Trust. Therefore, Sri Narayana Guru Industrial Training Institute owned by the trust was transferred to the Tamil Nadu Illathu Pillaimar Sangam. One K.V.Kanagambaram was the President of Tamil Nadu Illathu Pillaimar Sangam. However, the second appellant passed an order in Na.Ka.No.391/2011 on 16.12011 holding that a trust property should be transferred to another trust on payment of valid consideration. Therefore, it can only be treated as conveyance and hence, stamp duty has to be paid.

(3.) Aggrieved by the same, a revision was filed under Section 56(1) of the Act before the Inspector General of Registration, the third appellant herein. The third appellant, had held that the deed was a conveyance as it transfers title in favour of Tamil Nadu Illathu Pillaimar Sangam and the consideration is also mentioned as the existing debt of Rs. 4,25,000/- and the arrears of salary for their employees to the tune of Rs. 65,000/- and the said two amounts would be discharged by the purchaser which would be deemed as sale consideration. It was further held that for the applicability of Article 62(e), it should be the transfer of a trust property from one trust to another trust and the same should be only transferred in the name of trust and not in the individual's name. As in the present case, the transferee is shown as an individual, the order of the first appellant was confirmed by the third appellant. Aggrieved by the same, the petitioner has filed W.P(MD)No.16357 of 2012.