Punjab and Haryana High Court Sets Aside Time-Barred Proceedings in Stamp Duty Case

In a recent judgment, the Punjab and Haryana High Court declared the proceedings initiated under Section 47-A of the Indian Stamp Act, 1899 as time-barred and set them aside. The case involved a petition filed by M/s Microtek Buildwell Private Limited against the State of Haryana and others. The court ruled that the proceedings, which were initiated after a period of more than nine years from the execution of the sale deed, were clearly barred by limitation.

Justice Gurvinder Singh Gill, presiding over the bench, emphasized the provision of Section 47-A(3) of the Indian Stamp Act, which specifies a three-year limitation period from the date of execution of the sale deed for initiating such proceedings. The court quoted, “A perusal of the aforesaid provisions shows that it is provided in unambiguous terms that the proceedings under Section 47 of the Indian Stamp Act can be initiated within a period of 3 years from the execution of the sale deed.”

The court accepted the arguments presented by the petitioner’s counsel, Mr. Akshay Kumar Jindal, who highlighted that the proceedings were initiated at the instance of the vendor’s greed and were motivated by the subsequent increase in the value of the area. The court also noted that the complainant had previously filed a civil suit, which was dismissed due to the non-affixation of ad-valorem court fee.

The judgment further mentioned that the nature of the land at the time of execution of the sale deed is the relevant consideration for assessing the stamp duty, and subsequent changes in the land’s nature or value cannot be taken into account. The court concluded that the entire proceedings initiated against the petitioner, including the impugned order passed by the Commissioner, Gurugram Division, Gurugram, should be set aside.

This judgment serves as a significant decision clarifying the time limitation for initiating proceedings under Section 47-A of the Indian Stamp Act, providing clarity and certainty to parties involved in stamp duty matters.

Justice Gurvinder Singh Gill, in the judgment, stated, “A perusal of the aforesaid provisions shows that it is provided in unambiguous terms that the proceedings under Section 47 of the Indian Stamp Act can be initiated within a period of 3 years from the execution of the sale deed.”

Mr. Akshay Kumar Jindal, the counsel for the petitioner, argued, “The proceedings, as a matter of fact, have been initiated at the instance of the vendor on account of his greed since on account of subsequent development of the area, the value of the property stands enhanced.”

Date of Decision: 18.07.2023

M/s Microtek Buildwell Private Limited vs State of Haryana and others