SHIV KUMAR SAXENA Vs. MANISHCHAND SINHA

JUDGEMENT

(1.) THE appellants fifed Civil Suit No. 6-B/2001 before the Fifth Additional District Judge, Chhindwara for recovery of Rs. 1,40,000/- with interest. The plaint averments in brief are :-

(2.) IN the said suit, the appellants made an application under Section 33 read with Section 38 (2) of the Indian Stamp Act, 1899 (as applicable in Madhya Pradesh, hereinafter referred to as 'stamp Act') for impounding the said agreement and sending it to the Collector for determining the nature of the document and validating it. The application was opposed by the first respondent. On considering the said application, the learned Additional District Judge passed an order dated 31-3-2003. Relying on the decision of this Court in Vimla Devi V. Dhanraj Singh [2000 (I) MPWN 82], the Court held that the agreement was chargeable to duty as a conveyance under Article 23 of Schedule 1-A to Indian Stamp Act, 1899 having regard to the fact that possession of the immovable property (50000 sq. ft. out of the area agreed to be sold) was transferred to the purchasers under the agreement. He, therefore determined the amount payable by the appellants towards stamp duty as Rs. 60,000/- and the penalty payable as Rs. 6,00,000/- in all Rs. 6,60,000/-, for admitting the said document in evidence under Section 35 (1 ). He also directed that if the amount was not paid, the instrument shall be impounded and sent to the Collector.

(3.) THE said order was challenged by the appellants in Writ Petition No. 27490/2003. The learned Single Judge who heard the matter, dismissed the said writ petition by order dated 12-9-2003. The order of the learned Single Judge is challenged in this Letters Patent Appeal.