G DAYANAND Vs. DISTRICT REGISTRAR

JUDGEMENT

(1.) The mother of the petitioner owned property, bearing Nos. 9-4-65 to 68/9-4-64/12 to 25 and 9-4-117, with cellar, ground and first floors, constructed over 513 sq. yards at Tolichowki, Hyderabad. It is stated that after the death of the mother of the petitioner, himself and his two brothers - G. Subhash and G. Satyanarayana, succeeded to it. The two brothers of the petitioner also died and the property is now owned jointly by the petitioner and the legal representatives of his brothers. The petitioner submits that recently the widow of one of his brothers, by name, G. Rajasree, expressed her willingness to release 1/3rd share, in the property, in case she is paid Rs. 20 lakhs. The petitioner is said to have agreed for that, and accordingly, a release deed was executed by the said Rajasree, in favour of the petitioner. The document was presented before the Sub-Registrar, S.R.O., Golconda, the 2nd respondent herein, on 18-01-2008, for registration. Stamp duty of 1% was paid. The 2nd respondent, however, took the view that 3% of stamp duty is payable. Accordingly he kept the document pending registration. On 15-03-2008 he issued a notice requiring the petitioner to pay the deficit stamp duty of Rs. 3,25,678/- treating the document as a sale deed. On the request made by the petitioner, the matter was referred to the 1st respondent. Through a final order dated 07-07-2009, the 1st respondent took the view that the stamp duty is payable, as provided for under Article 47-A of Schedule 1-A to the Indian Stamp Act, 1899 (for short 'the Act'), thereby reiterating the view taken by the 2nd respondent. The petitioner challenges the same.

(2.) The petitioner states that the transaction that has taken place through the document in question is the one of release of the joint ownership of one co-owner in favour of another co-owner, and that no element of sale is involved. He contends that mere payment of consideration for such release, does not amount to sale.

(3.) On behalf of the respondents, a counter-affidavit is filed. It is stated that the deed presented by the petitioner evidences transaction of sale of share of the executant for valuable consideration of Rs. 20,00,000/- and accordingly, deserves to be treated as a sale deed. It is further stated that the so-called release is not in favour of the rest of the co-owners, but is in favour of only one of the co-owners, and in that view of the matter, the stamp duty payable on the document is a sale deed.