Bombay High Court: Payment Of Stamp Duty Under Amnesty Scheme Has No Effect Of Altering Strict Timelines Under Registration Act For Presentation Of Documents

The Bombay High Court held that the payment of stamp duty under the Amnesty Scheme has no effect of altering the strict timelines provided under the Registration Act, 1908 for presentation of documents.

The Court held thus in a Writ Petition seeking to challenge the legality and validity of a letter of the Joint Sub-Registrar.

A Single Bench of Justice Madhav J. Jamdar observed, “The object of the Registration Act is not for securing revenue but maintaining a record of documents of title in public interest. Thus, allowing registration of the subject document dated 4th October 1987 which has been presented for the first time for registration on 31st January, 2024 i.e. after about 37 years, cannot be allowed in view of specific timelines provided in Section 23 read with Section 25 of the Registration Act. It is very clear that the said strict timelines are provided to prevent fraud and protect the public as the purpose of the Registration Act is to a maintain record of documents of title in public interest. The payment of stamp duty under the Amnesty Scheme will have no effect of altering the strict timelines provided under the Registration Act for presentation of documents.”

The Bench enunciated that the High Court cannot in its Writ Jurisdiction extend the statutory period under the Registration Act for presentation of a document for registration.

Advocate Naresh Jain appeared on behalf of the Petitioner while Advocate General (AG) Birendra Saraf appeared on behalf of the Respondents.

Brief Facts

The Petitioner challenged the 2024 letter of the Joint Sub-Registrar, Class-II, Borivali No.4, Mumbai Suburban District and also raised challenge to circulars issued by the Inspector General of Registration and Controller of Stamps, State of Maharashtra, Pune. In the alternative, it was prayed that it be declared that the said circulars are not applicable to the instruments regularized in Amnesty Scheme. A relief was also sought to the effect that the Joint Sub-Registrar be directed to do registration of Development-cum-Sale Agreement along with Confirmation Deed, if necessary.

By the impugned letter, it was informed to the Petitioner that pursuant to the circulars, a new document be executed after paying the proper stamp duty and by complying with the mandatory requirements of the Registration Act, the same be presented for registration and thereafter the same will be registered. It was clarified that a new document by paying applicable stamp duty can be registered within the timeline as per the provisions of the Registration Act.

Reasoning

The High Court in the above context of the case, noted, “The Registration Act makes provisions in public interest for record of documents and mainly documents of title. The same has been enacted to check forgery, prevent fraud, to protect the public and to provide good evidence of the genuineness of written instruments. … The Stamp Act is a fiscal measure enacted to secure revenue for the State on certain classes of instruments. The stringent provisions of the Act are conceived in the interest of the revenue.”

The Court said that the purpose of the Amnesty Scheme issued by exercising power under Section 9 of the Maharashtra Stamp Act is in consonance with the object of the Stamp Act i.e., to secure revenue for the State.

“The object of the Registration Act is not for securing revenue but maintaining a record of documents of title in public interest. The stringent timelines prescribed under the Registration Act for presentation of document have been made to prevent fraud and to protect the public”, it added.

The Court further observed that the non stamping of the instrument with proper stamp duty, in terms of the provisions of the Maharashtra Stamp Act, entailed the following consequences –

(a) As per Section 33 of the Stamp Act, if the agreement which is produced before the Authority contemplated under Section 33 and is not duly stamped, the Authority is empowered to impound the same. In fact, even after registration of the instrument also power is given under Section 33-A of the Stamp Act to impound the instrument if it is not duly stamped.

(b) Section 34 of the Stamp Act provides that instruments not duly stamped is inadmissible in evidence.

(c) Section 46 of the Stamp Act provides that all duties, penalties and other sums required to be paid under this Act, may be recovered by the Collector by distress and sale of the movable property of the person from whom the same are due as an arrear of land revenue. Execution of any instrument with the intention to evade the duty is an offence under Section 59.

“Once under the Amnesty Scheme proper stamp duty as determined is paid within the time limit as granted by the order passed under the Amnesty Scheme, for the purpose of the Stamp Act the said document/instrument will be treated as on which proper stamp duty has been paid and for the purpose of Sections 33, 34, 40, 46 and 59, the same will be considered as the document on which the proper stamp duty has been paid. The same has no effect on the stringent time line provided under the Registration Act for presentation of the documents for registration”, it remarked.

The Court also noted that the only limited exception is where the delay in presenting the document was not attributable to the Petitioner and the same is on account of some impossibility or by virtue of an act of Authority and the said decisions are premised under the principle that no man can be compelled to perform an impossible act or be punished for the acts of an Authority.

Accordingly, the High Court dismissed the Writ Petition and refused to grant relief to the Petitioner.

Cause Title- Atul Project India Private Limited v. The State of Maharashtra & Ors. (Neutral Citation: 2025:BHC-OS:9688-DB)

Appearance:

Petitioner: Advocates Naresh Jain, Aarti Debnath, and Niharika Patil.

Respondents: AG Birendra Saraf and Additional GP Jaymala Ostwal.

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