In the case of Shyamsundar Radheshyam Agrawal & Anr. vs Pushpabai Nilkanth Patil & Ors., the Preeminent Court tended to the key issue of whether stamp obligation and punishment were pertinent to understandings for deal that were executed earlier to the ultimate deal deed. The appellants fought that the agreements were portion of the same exchange which the stamp obligation had as of now been paid when the ultimate deal deed was executed. In any case, the Court found that the prior understandings to offer, which exchanged physical ownership of the properties, were to be treated as partitioned conveyances, requiring appropriate stamp obligation and enlistment at the time of their execution.
Key Highlights of the Judgment:
Applicability of Stamp Duty:
The Maharashtra Stamp Act considers agreements for sale that transfer possession to be conveyances, as the Supreme Court highlighted. Therefore, even if a final sale deed is executed later, they are subject to stamp duty in accordance with the terms of Article 25 of Schedule I of the Act.
Principal Document Rule:
The appellants argued that the final sale deed was the principal document and that no further stamp duty should be payable on the prior agreements. However, the Court held that each agreement must be treated individually unless it forms part of the same transaction, which was not the case here.
Impounding of Documents:
Since the understandings were not appropriately stamped, they were seized, and the trial court's choice to send them to the Collector for arbitration of stamp obligation and punishment was maintained by both the Tall Court and the Preeminent Court.
Penalty for Non-Compliance:
The Court reiterated that any document not adequately stamped cannot be used in evidence until the defect is corrected. The appellants were directed to pay the difference in stamp duty and any applicable penalties.
This judgment reinforces the principle that proper stamp duty is required at each stage of a property transaction, particularly when agreements to sell involve the transfer of possession. It also highlights the strict interpretation of stamp duty laws in India to ensure compliance and prevent revenue loss.
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TAGS: Supreme Court Shyamsundar Agrawal case stamp duty Maharashtra Stamp Act agreement for sale conveyance property law impounded documents.
