D.Dis.No.47309/P1/2021, Assignment Cum Novation Agreement Revision
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued D.Dis.No.47309/P1/2021 dated 15 September 2022, modifying the stamp duty decision made by the Sub Registrar (District Registrar Cadre), Adayar, for pending document P113/2021. The authority classified the agreement partly as a conveyance of Rs.2 crores and partly as an instrument recording pledged securities for an overdraft facility of Rs.122.47 crores, and directed the Sub Registrar to issue a revised decision.
What the proceedings cover
D.Dis.No.47309/P1/2021 dated 15 September 2022 concerns an Assignment Cum Novation Agreement executed on 30 March 2021 and filed as pending document P113/2021 at the Sub Registrar Office, Adayar. The parties are OPG Power Generator Private Limited as assignor, Gita Power and Infrastructure Private Limited as assignee, and Bhadreshwar Vidyut Private Limited as borrower.
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, considered a revision petition filed by Gita Power and Infrastructure Private Limited against the Sub Registrar's stamp duty decision.
What the Sub Registrar had decided
The Sub Registrar (District Registrar Cadre), Adayar, treated the agreement as a conveyance involving the entire Rs.122.47 crore borrowing. The Sub Registrar determined deficit stamp duty of Rs.8,56,99,294 under Article 23 of the Indian Stamp Act, 1899.
The agreement had been stamped for Rs.30,000. It recorded an assigned loan and assignment consideration of Rs.2 crores, out of the Rs.122.47 crore amount connected with the borrower.
Findings on revision
The Chief Controlling Revenue Authority and Inspector General of Registration reached these conclusions:
- The agreement assigned debt of only Rs.2 crores, not the entire Rs.122.47 crores.
- The subject matter of the conveyance was therefore Rs.2 crores.
- The agreement also recorded that securities belonging to OPG Power Generator Private Limited had been pledged to Punjab National Bank for the Rs.122.47 crore overdraft facility.
- The agreement could not be classified as a transfer under Article 62(c), because no earlier written mortgage document existed.
- The agreement had a dual character under section 5 of the Indian Stamp Act, 1899.
Revised treatment
D.Dis.No.47309/P1/2021 determined that the conveyance component under Article 23 attracts 5 per cent stamp duty and 4 per cent registration fee on Rs.2 crores. The pledged securities component under section 23-A read with Article 5(j) attracts Rs.20 stamp duty and a 1 per cent registration fee on Rs.122.47 crores.
The Chief Controlling Revenue Authority and Inspector General of Registration modified the Sub Registrar's earlier decision and directed the Sub Registrar to issue revised orders on that basis. The proceedings do not state the final deficit amount after recalculation.
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 stamp duty upheld on the entire Rs.122.47 crore amount as a conveyance?
No. The authority found that only Rs.2 crores had been assigned and treated that amount as the subject matter of the conveyance.
What rates did the authority direct the Sub Registrar to apply?
The conveyance component attracts 5 per cent stamp duty and 4 per cent registration fee on Rs.2 crores. The pledged securities component attracts Rs.20 stamp duty and a 1 per cent registration fee on Rs.122.47 crores.
Did the authority accept that the agreement was a transfer of mortgage rights?
No. It found that no earlier written mortgage document existed, so the agreement could not be classified under Article 62(c).
Does the proceeding state the final deficit stamp duty payable?
No. It modifies the basis of assessment and directs the Sub Registrar to issue revised orders, but it does not give the final recalculated deficit amount.
