Adjudicate Payable Stamp Duty And Communicate It To Parties Within 30 Days: Delhi High Court To Collector Of Stamps

The Delhi High Court has directed Delhi Government’s Collector of Stamps to adjudicate the stamp duty payable on documents and communicate it to the concerned parties within 30 days till a specific entry is added in the Delhi Act, 2011 fixing a reasonable time limit for such adjudication.

Justice Prathiba M Singh said that if such adjudication duty involves any complexity or extraordinary circumstances, it can be extended for a maximum period of three months from the date of application.

The court observed that a reasonable time ought to be fixed in order to enable the parties to have some certainty regarding the stamp duty which is payable.

“The present order shall be communicated to the Chief Secretary, GNCTD for ensuring compliance. In addition, the Chief Secretary, GNCTD shall also consider adding a specific entry in the Delhi Act, 2011 in respect of adjudication of stamp duty with a reasonable time limit being fixed so that the same can be followed by the Collector of Stamps. Till the addition of the said entry in the Delhi Act, 2011, the aforementioned timeline shall operate,” the court said.

The Court was hearing two pleas filed by Uno Minda Limited and Reebok India Co., as their applications for the issuance of stamp paper had been pending for over a year.

The entities sought direction on the Collector of Stamps, currently being manned by Delhi Government’s Principal Secretary Revenue-cum-Divisional Commissioner, for adjudicating the stamp duty payable by them.

Disposing of the pleas, the Court noted that the applications for issuance of stamp paper were filed more than one year ago and despite the same, the determination of the stamp duty was not communicated to the petitioners.

Justice Singh directed the authorities to determine the stamp duty payable by the petitioners and communicate the same to them within 30 days.

“A perusal of Section 31 of the Indian Stamp Act, 1899 shows that adjudication as to the proper stamp duty would have to be made by the concerned Collector of Stamps”, the court observed.

It further said that under section 31, where an instrument has been executed in India, it would have to be brought for stamping within one month and in case it is executed abroad, it would have to be brought for stamping within three months.

 “However, insofar as adjudication as to proper stamp is concerned, there is no time limit which has been fixed under Section 31 of the Indian Stamp Act, 1899”, the court added.

The court also observed that since the activities of individuals and companies would be depended upon various documents, instruments of transfer, etc., and the first step would be to seek adjudication of the stamp duty under section 31, a time limit would be required to be followed by the Collector of Stamps for the adjudication.

Case Title: Uno Minda Ltd. v. Deputy Commissioner Revenue Department

Citation: 2023 LiveLaw (Del) 394

Counsel for petitioner: Shailendera Singh and Mr. Akash Saxena (for Uno Minda Ltd.)

Abhinav Vasisht Sr. Advocate,Niraj Singh, Dev Hans Kasana (for Reebok India Co.)

Counsel for respondent: Avishkar Singhvi

Click Here To Read/Download Order