AMIT KUMAR Vs. NEHA BHATIA

JUDGEMENT

(1.) The dispute is with regard to order passed by the trial court directing the plaintiff to make good the deficient stamp duty 10 times of the amount of the deficient stamp duty as penalty.

(2.) While examining the amended provisions of the Indian Stamp Act, 1899 this Court in CR-1931-2017 (Narinder Kapoor vs. Inderjit (since deceased) through his legal heir) held that the stamp duty is to be calculated on the amount which is paid to the intending vendor.

(3.) While interpreting Sec. 33, 35, 38 and 39 of the Indian Stamp Act, 1899, the Supreme Court in Trustees of H.C.Dhanda Trust vs. State of Madhya Pradesh and others' 2020 AIR (SC) 4349 held that imposition of penalty to the extent of 10 times of deficiency in the stamp duty is not mandatory and the discretion lies with the authority. Relevant discussion is in para 17 and 18 of the judgment, which are extracted as under:-