D.Dis.No.23826/P1/2019, Kodambakkam Release Deed Revision
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued D.Dis.No.23826/P1/2019 dated 24 July 2023, allowing a revision petition concerning pending release deed No.P.192/2016 at the Sub Registrar Office, Kodambakkam. The proceedings set aside the Sub Registrar's demand for deficit stamp duty of Rs.1,26,03,000 and a penalty of Rs.5, and classified the document under Article 55A of the Indian Stamp Act, 1899.
What the proceedings decide
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued D.Dis.No.23826/P1/2019 dated 24 July 2023 under section 56(1) of the Indian Stamp Act, 1899. The proceedings concern pending document No.P.192/2016, a release deed filed at the Sub Registrar Office, Kodambakkam.
The decision:
- Allows the revision petition filed by Mr. J. Thakur Bakshani.
- Sets aside the Sub Registrar's order dated 21 May 2019.
- Rejects classification of the release deed under Article 55(D)(ii).
- Classifies the release deed under Article 55A.
- Removes the Sub Registrar's demand for deficit stamp duty of Rs.1,26,03,000 and a penalty of Rs.5.
Background to the release deed
Pending document No.P.192/2016 was executed on 18 April 2016. It releases a 30 percent share out of the 40 percent share stated to be held by the releasors in the property described in Schedule C. The property value shown for the release was Rs.3,00,00,000, and the deed bore stamp duty of Rs.25,000.
The property had been purchased in the name of the partnership firm M/s B.N.T. Connections. Mrs. J. Bhagwanthi Bakshani and Mr. J. Thakur Bakshani were partners with shares of 40 percent and 60 percent respectively. Mrs. J. Bhagwanthi Bakshani died without a will, leaving the releasors and releasee as her legal heirs.
Reasons for the decision
The Chief Controlling Revenue Authority found that the releasors were two sisters and a brother, while the releasee was their brother. Their relationship falls within the definition of family members referred to in Article 58(a)(i).
The authority also found that the releasors were not partners in M/s B.N.T. Connections. They received their rights as legal heirs of their deceased mother and released those inherited rights to their brother. The partnership had dissolved by operation of law after one of its two partners died. For these reasons, classification under Article 55(D)(ii) was found inappropriate.
Who is directly affected
D.Dis.No.23826/P1/2019 directly affects the parties to pending document No.P.192/2016 and the Sub Registrar Office, Kodambakkam. It is relevant to professionals examining how an inherited property share released by non-partner family members was classified in this particular revision proceeding.
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
What happened to the deficit stamp duty demand?
The demand for deficit stamp duty of Rs.1,26,03,000 and a penalty of Rs.5 was set aside when the revision petition was allowed.
Why was Article 55(D)(ii) rejected?
The releasors were not partners in the partnership firm. They had inherited their rights from their deceased mother and released those rights to their brother.
How was the release deed finally classified?
The Chief Controlling Revenue Authority classified pending document No.P.192/2016 under Article 55A of the Indian Stamp Act, 1899.
What share was covered by the release deed?
The deed purported to release a 30 percent share out of the 40 percent share stated to be held by the releasors in the Schedule C property.
