Official guidance, Tamil Nadu land law
Appeal on Settlement Deed Document No. 294/2008
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, through D.Dis. No. 19536/P1/2014 dated 2 March 2021, dismissed Mr. J. Vinodh's appeal concerning Settlement Deed Document No. 294/2008 and upheld the District Registrar, Tiruchirappalli's demand for deficit stamp duty of Rs.2,35,408. The authority held that a settlement by an adopted son in favour of his biological father must be classified as a settlement in favour of a person who is not a family member because adoption had severed the son's ties with his birth family.
What the proceeding decides
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued D.Dis. No. 19536/P1/2014 dated 2 March 2021 concerning Settlement Deed Document No. 294/2008, registered at the Joint III Sub Registrar Office, Tiruchirappalli. The proceeding decides whether the biological father of an adopted person remained a family member for stamp duty classification.
The settlement deed was executed on 1 February 2008 by Mr. J. Vinoth in favour of Mr. D. Jagannathan. The property was valued at Rs.30,67,601, and the document bore stamp duty of Rs.10,000.
Background to the dispute
The records showed that Mr. J. Vinoth was the biological son of Mr. D. Jagannathan but had been adopted by Mrs. K. V. Vanaja through registered Document No. 127/1997/BkIV. Mrs. K. V. Vanaja later settled property in favour of her adopted son through registered Document No. 139/2008.
Mr. J. Vinoth subsequently settled that property in favour of his biological father. The deed was initially stamped as a settlement in favour of a family member. Following an audit objection, the matter was referred to the District Registrar, Tiruchirappalli.
Key figures were:
- Property value: Rs.30,67,601.
- Stamp duty borne by the deed: Rs.10,000.
- Deficit stamp duty determined: Rs.2,35,408.
Reasoning and outcome
The Chief Controlling Revenue Authority relied on section 12 of the Hindu Adoptions and Maintenance Act, 1956. It states that, from the date of adoption, an adopted child is treated as the child of the adoptive parent for all purposes, and ties with the birth family are treated as severed and replaced by ties in the adoptive family, subject to the listed exceptions.
The authority therefore found that Mr. J. Vinoth could not be regarded as the claimant's son for this stamp duty classification. The deed was classified as a settlement in favour of a person who was not a family member under Article 58(a)(ii) of the Indian Stamp Act, 1899.
The appeal was dismissed, and the District Registrar's order requiring payment of Rs.2,35,408 as deficit stamp duty was upheld.
Who is affected
D.Dis. No. 19536/P1/2014 directly concerns the named parties and Settlement Deed Document No. 294/2008. Its reasoning is relevant to people examining the stamp duty treatment of a settlement between an adopted person and a member of the person's biological family.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Did the authority treat the biological father as a family member?
No. The authority held that the adoption severed the son's ties with his birth family, so the biological father was not treated as a family member for classifying the settlement deed.
How much deficit stamp duty was upheld?
The Chief Controlling Revenue Authority upheld the District Registrar's determination of Rs.2,35,408 as deficit stamp duty.
Why was the appeal dismissed?
The appeal was dismissed because section 12 of the Hindu Adoptions and Maintenance Act, 1956 treats an adopted child as belonging to the adoptive family and treats ties with the birth family as severed, subject to the stated exceptions.
Which registered document was examined in the appeal?
The appeal concerned Settlement Deed Document No. 294/2008, executed on 1 February 2008 and registered at the Joint III Sub Registrar Office, Tiruchirappalli.
