Revision Petition Order on Deed of Rectification of Lease Deed
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued order D.Dis.No.15687/P1/2019 dated 15 March 2024 on a revision petition concerning Document No.P.8/2015 at the Sub Registrar office, Bhavani. The authority treated the document as a lease creating fresh leasehold rights until 15 February 2033 and upheld the District Registrar, Erode's determination of Rs.51,980 as deficit stamp duty and penalty.
What the proceedings concern
Order D.Dis.No.15687/P1/2019 dated 15 March 2024 was issued by the Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, under section 56(1) of the Indian Stamp Act, 1899. It decides a revision petition filed on behalf of Syndicate Bank, Kalingarayan Palayam, against an order of the District Registrar, Erode.
The disputed Document No.P.8/2015 was executed on 31 December 2014 and presented at the Sub Registrar office, Bhavani. It was titled “Deed of Rectification of Lease Deed” and concerned an earlier lease between Mrs. S. Karthika and Syndicate Bank for the same property.
What the rectification changed
Document No.P.8/2015 sought to change the earlier lease wording from a lease for 10 years, from 16 February 2013 to 15 February 2023, into a lease for 20 years, ending on 15 February 2033. The premises had a carpet area of 1,230 square feet, with monthly rent of Rs.15,990 and a 20 per cent rent escalation after every five year block.
The Sub Registrar considered the additional 10 year period to be a fresh lease interest, impounded the document for insufficient stamping and sent it to the District Registrar, Erode.
Findings and result
The Chief Controlling Revenue Authority and Inspector General of Registration made the following findings:
- The earlier registered lease granted a lease for 10 years and only provided an option for a further period.
- The earlier lease did not create a leasehold right from 16 February 2023 to 15 February 2033.
- Changing the term to 20 years therefore created a fresh leasehold right.
- The document had to be assessed according to its contents, not merely its title as a rectification deed.
- The claim that stamp duty had already been paid for 20 years could not be accepted because the cited provisions for recognising duty paid on related instruments did not apply to a lease deed.
- Rule 7 of the Tamil Nadu Stamp (Prevention of Undervaluation) Rules, 1968 was not applicable because the action was taken under sections 33, 38 and 40, not section 47-A.
The authority concluded that Document No.P.8/2015 was classifiable as a lease for the period from 16 February 2013 to 15 February 2033. The District Registrar, Erode's determination of Rs.51,980 as deficit stamp duty and penalty was held to be sustainable.
Who should take note
The proceedings directly affect the named lessor and lessee. They are also relevant when a document described as a rectification changes the duration of an existing lease and creates leasehold rights for an additional period.
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
Was the document accepted merely as a correction to the earlier lease?
No. The authority found that extending the lease from 10 years to 20 years created fresh leasehold rights and classified the document as a lease.
What amount did the District Registrar determine as payable?
The document records Rs.51,980 as the deficit stamp duty and penalty determined by the District Registrar, Erode.
Why was the additional 10 year period treated as a new right?
The earlier lease granted a term ending on 15 February 2023 and contained only an option for a further period. It did not itself create leasehold rights through 15 February 2033.
Did the undervaluation procedure under rule 7 apply?
No. The authority stated that rule 7 applies to action under section 47-A, while the action on this document was taken under sections 33, 38 and 40 of the Indian Stamp Act, 1899.
