Proceedings No. 34583/P1/2020 dated 27 November 2024

What the proceedings decide

Proceedings No. 34583/P1/2020 dated 27 November 2024 concern a Deed of Declaration of Trust executed on 29 January 2018 and registered as Document No. 295/2018 at the Alangudi Sub-Registrar Office in Pudukkottai Registration District. The Inspector General of Registration and Chief Controlling Revenue Authority of the Tamil Nadu Registration Department dismissed the document holder’s appeal and accepted the District Registrar’s decision.

Transaction covered

The deed transferred properties belonging to Sri Bharathi Educational Trust to J Groups Educational and Charitable Trust. The properties included Sri Subabharathi Polytechnic College and Sri Subabharathi Arts and Science College.

The deed stated that:

• No consideration or other benefit was paid or received for the transfer.
• The properties were handed over to J Groups Educational and Charitable Trust.
• Patta could be changed to the receiving trust’s name.
• The receiving trust could handle administration, name changes, banking work and government approvals relating to the colleges.

The recorded total property value was ₹2,95,36,114, and the deed bore stamp duty of ₹1,200.

Stamp duty dispute

The District Registrar treated the deed as transferring ownership from one trust to another and determined deficit stamp duty of ₹20,66,355. The document table describes the classification as a settlement under Article 58(a)(ii), while the narrative portion refers to Article 58(a)(i).

The appellant argued that the transfer was without consideration, that Article 62(e) applied, and that proceedings could not be reopened after registration. The appellant also sought repayment of an allegedly excess registration fee of ₹2,95,300.

Reasons for dismissing the appeal

The registration authority found that action to recover deficient stamp duty could be started after registration under section 33A. It relied on court decisions stating that a transfer of property from one trust to another does not fall under Article 62(e), even where the trusts have similar purposes or closely related trustees.

The proceedings record that the Supreme Court dismissed the challenge to the relevant Madras High Court Division Bench decision. On that basis, the appeal was dismissed and the District Registrar’s demand was upheld.

Who may be affected

The decision directly concerns the two trusts and Document No. 295/2018. It is also relevant to trusts preparing deeds that transfer ownership of land or institutions to another trust, particularly where the parties propose to treat the deed as a transfer under Article 62(e).