ப.மு.11514/ப்பி1/2021, சீராய்வு மனு இறுதியாணை

What the proceeding decides

Proceedings No. ப.மு.11514/ப்பி1/2021 dated 18 September 2024 concerns a consent deed presented as pending document P1/2015 at the Paramakudi Sub Registrar Office in the Sivaganga registration district. The Head of the Tamil Nadu Registration Department and Chief Controlling Revenue Authority accepted the revision petition and cancelled the Sivaganga District Registrar's order dated 29 January 2021.

The decision is directly relevant to the parties to this consent deed. It may also be useful to buyers, owners and registration professionals dealing with a consent document executed to complete an earlier sale transaction.

Document and property details

The review proceeding records the following facts:

• The document is a consent deed dated 31 December 2014.
• T. Marimuthu executed it in favour of Govindaraj.
• The stated property value was Rs.42,770, based on earlier sale deed number 1833/2011.
• The consent deed carried stamp duty of Rs.20.
• The Sivaganga District Registrar classified it as a sale conveyance under Article 23 of the Indian Stamp Act.
• The District Registrar demanded deficit stamp duty of Rs.79,352 and a penalty of Rs.1,648.

The property was described as ancestral property belonging to T. Marimuthu and his brother Shanmugam. Shanmugam had given a general power to his wife Maruthambal, who sold the property to Govindaraj through document number 1833/2011. Marimuthu later executed the consent deed without receiving any consideration because he had been away when the earlier sale deed was registered.

Reason for allowing the revision

The Head of the Tamil Nadu Registration Department considered section 4 of the Indian Stamp Act, which addresses multiple instruments used to complete one sale, mortgage or settlement transaction. The proceeding explains that an instrument used to complete such a transaction may be treated as an ancillary instrument rather than charged again at the rate applicable to the main instrument.

The authority also relied on earlier Registration Department proceedings that treated comparable consent deeds as ancillary documents. On that basis, pending document P1/2015 was classified as an ancillary document under section 4, the District Registrar's assessment was set aside, and the revision petition was allowed.

Practical effect

Proceedings No. ப.மு.11514/ப்பி1/2021 removes the deficit stamp duty and penalty demand made through the District Registrar's cancelled order for this particular consent deed. The proceeding does not state that every consent deed automatically receives the same treatment. Its reasoning depends on the consent deed completing the transaction recorded in the earlier sale instrument.