D.Dis.No.55426/P1/2018, Revision Petition on Deed of Mortgage
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued proceedings D.Dis.No.55426/P1/2018 dated 23 May 2024, allowing a revision petition concerning mortgage document No. P.13/2014 registered at the Sub Registrar Office, Villivakkam. The proceedings classify the document as a simple mortgage and set aside the Sub Registrar (District Registrar cadre), Villivakkam order that treated it as a mortgage with possession and demanded deficit stamp duty and a penalty.
What the proceedings decide
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued proceedings D.Dis.No.55426/P1/2018 dated 23 May 2024 under section 56(1) of the Indian Stamp Act, 1899. The proceedings allow the revision petition filed by Edelweiss Housing Finance Limited and set aside the classification made by the Sub Registrar (District Registrar cadre), Villivakkam.
Mortgage document No. P.13/2014 is classified under Article 40(b) as a simple mortgage deed, rather than under Article 40(a) as a mortgage with possession.
Document and parties affected
The decision applies to the following specific mortgage document:
- Document number: P.13/2014.
- Registration office: Sub Registrar Office, Villivakkam.
- Execution date: 23 January 2014.
- Document title: Deed of Mortgage.
- Executant: Mrs. Janai M, wife of Malan.
- Claimant: Edelweiss Housing Finance Limited.
- Amount secured: Rs.50,00,000.
- Stamp borne by the deed: Rs.50,000.
The proceedings were also sent to M/s NIDO Home Finance Limited, formerly Edelweiss Housing Finance Limited. The source records that the loan had been assigned to Edelweiss Asset Reconstruction Company through document No. 5565/2021 at the Sub Registrar Office, Pallavaram.
Earlier demand that was set aside
The Sub Registrar (District Registrar cadre), Villivakkam had classified document No. P.13/2014 as a mortgage with possession. Based on that classification, the authority had determined:
- Deficit stamp duty of Rs.1,50,000.
- Penalty of Rs.1,000.
Proceedings D.Dis.No.55426/P1/2018 set aside that decision after examining the revision petition, registration records and arguments presented for the petitioner.
Reasons for treating it as a simple mortgage
The Chief Controlling Revenue Authority and Inspector General of Registration found that possession remained with the mortgagor. The deed required the mortgagor to keep the property in good repair while the security continued.
The deed permitted Edelweiss Housing Finance Limited to enter and possess the mortgaged property only after an event of default. The proceedings therefore concluded that the deed did not transfer possession when the mortgage was created and classified it as a simple mortgage under Article 40(b).
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
Does the decision cancel the deficit stamp duty and penalty demanded for document No. P.13/2014?
The proceedings set aside the District Registrar's decision that determined deficit stamp duty of Rs.1,50,000 and a penalty of Rs.1,000, and allowed the revision petition.
Why was the mortgage treated as a simple mortgage?
The deed showed that possession remained with the mortgagor. The mortgagee could enter and possess the property only if the mortgagor defaulted.
Which property document is covered by these proceedings?
The proceedings cover Deed of Mortgage No. P.13/2014 at the Sub Registrar Office, Villivakkam, executed on 23 January 2014 for an amount secured of Rs.50,00,000.
Does the decision apply to every mortgage deed in Tamil Nadu?
The proceedings decide the revision petition concerning document No. P.13/2014. They do not state that every mortgage deed is automatically classified in the same way.
