SC Sets Aside Ten-Times Stamp Penalty; District Registrar to Determine Penalty

Seetharama Shetty Vs Monappa Shetty (Supreme Court of India)

The Supreme Court considered the scope and interplay of Sections 33, 34, 37 and 39 of the Karnataka Stamp Act, 1957 in civil appeals arising from proceedings concerning an agreement of sale dated 29.06.1999.

The appellant had filed O.S. No. 295 of 2013 seeking perpetual injunction against interference with possession of agricultural land. The appellant claimed possession under the agreement of sale, while the respondent denied execution of the agreement and contended that, because possession was delivered under it, the agreement was required to be treated as a conveyance and was insufficiently stamped.

The respondent applied under Section 33 of the Act for impounding the agreement and determination of deficit stamp duty and penalty. On 10.11.2016, the trial court sent the agreement to the District Registrar. The District Registrar initially returned the instrument stating that the village name was unavailable. The appellant subsequently filed a memo clarifying the village name, which the trial court rejected. The High Court later directed that the memo be sent to the District Registrar for appropriate proceedings concerning calculation of deficit stamp duty and other charges, while leaving questions concerning genuineness, validity and the appellant’s rights open.