KUNWARPAL SHARMA Vs. STATE OF U.P.

JUDGEMENT

(1.) WHO is liable to pay the stamp duty on a deed of conveyance of immovable property is the question which requires consideration here.

(2.) THIS petition under Article 226 of the Constitution has been filed for quashing of the proceedings initiated against the petitioners in pursuance of recovery certificate dated 12-3-1997 issued by ADM (Finance and Revenue) for recovery of Rs. 96,400/- towards deficiency of stamp duty. The learned standing counsel was granted time on 28-3-2001 and on several occasions thereafter to file counter affidavit but no counter affidavit has been filed. Since the issue involved is a purely legal one, the writ petition has been finally heard with the consent of the parties.

(3.) SRI Manoj Mishra, learned counsel for the petitioners has submitted that in view of S. 29(c) of the Stamp Act, the liability to pay the stamp duty is upon the grantee, namely, the vendee and not that of the vendor and, therefore, the proceedings initiated against the petitioners for recovery of the amount are illegal. He has further submitted that sale deed having been cancelled by a decree of the Civil Court the effect thereof would be as if no sale deed was executed and in such circumstances, the authorities cannot recover any amount as deficiency in stamp duty. Sri Kripa Shankar Singh, learned standing counsel has, on the other hand, submitted that S. 29(c) of the Stamp Act comes into play only between a vendor and vendee and it has no bearing or effect upon the right of the State to recover the balance amount of stamp duty. Sri Singh has submitted that S. 29(c) regulates the liability of the parties inter se and gives a right to the vendor to recover the amount from the vendee but the Collector or the State in their discretion can recover the entire duty from any one or from all the parties. He has further submitted that the payment of entire stamp duty is the condition precedent for registration of a document and the subsequent cancellation of the deed by a decree of the Civil Court has no bearing at all and the parties to the document cannot escape their liability to pay full amount of stamp duty merely on the ground that the deed has been subsequently cancelled by a decree of the Court.