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No Stamp Duty on Flat Transferred as per Divorce Settlement: SC

Case Law Details

TaxGuru Citation
2025 taxguru.in 2159
Case Name
Arun Rameshchand Arya Vs Parul Singh (Supreme Court of India)
Date of Judgement/Order
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Arun Rameshchand Arya Vs Parul Singh (Supreme Court of India)

Supreme Court of India resolved a transfer petition filed by Arun Rameshchand Arya, seeking to shift a divorce case from Mumbai to Delhi. During the proceedings, both parties opted for mutual consent divorce and filed applications under Article 142 of the Constitution. The primary issue in dispute was a jointly owned flat in Kalyan (West), Maharashtra. While both individuals made claims regarding the source of funds used for purchasing the property, the husband ultimately agreed to relinquish his rights. In return, the wife, Parul Singh, agreed not to seek alimony. Since both parties are well-established in their respective careers, financial support was not deemed necessary.

The court directed the absolute transfer of the flat to the wife without encumbrances and ruled that no stamp duty was required for registration under Section 17(2)(vi) of the Registration Act, 1908, as the property was part of the legal proceedings. The Sub-Registrar was instructed to register the flat solely in the wife’s name. The court then dissolved the marriage by mutual consent and disposed of the pending transfer petition. With this ruling, all legal disputes between the parties were settled, ensuring a clear division of assets.

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