D.Dis.No. 31446/P1/2023, Revision Petition on Release Deed P40/2021
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued D.Dis.No. 31446/P1/2023 dated 19 June 2024, allowing a revision petition concerning Release Deed P40/2021 registered at the Sub Registrar Office, Madhavaram. The authority classified the deed under Article 55A of the Indian Stamp Act, 1899, and set aside the District Registrar, Chennai (North) decision requiring deficit stamp duty of Rs.2,55,000.
What the proceeding covers
D.Dis.No. 31446/P1/2023 concerns a release deed executed by Mr. T. Mohanraj in favour of his wife, Mrs. V. Bhuvaneshwari. The deed released his 50% undivided share in a jointly owned property at Kodungaiyur village.
The property comprised a plot measuring 1,000 square feet with a building, identified as Plot No. 7A and Door No. 7A. The couple had jointly purchased it through a sale deed dated 7 June 2007, registered as Document No. 5388/2007 at the Sub Registrar Office, Sembium.
Key document details were:
- Release Deed P40/2021 was executed on 22 February 2021.
- The stated property value was Rs.40,00,000.
- The document bore stamp duty of Rs.25,000.
- Mr. T. Mohanraj was the releasor and Mrs. V. Bhuvaneshwari was the releasee.
Why additional stamp duty was demanded
The Sub Registrar treated Release Deed P40/2021 as a release between co-owners who were not family members under Article 55(c) of the Indian Stamp Act, 1899. This conclusion relied on recitals stating that the parties had a matrimonial dispute, had reached a compromise and intended to separate through mutual consent divorce.
The document was impounded and sent to the District Registrar, Chennai (North). By proceedings dated 24 July 2023, the District Registrar upheld the Article 55(c) classification and required deficit stamp duty of Rs.2,55,000.
Decision on revision
The Chief Controlling Revenue Authority and Inspector General of Registration found that the release deed was executed on 22 February 2021, while the marriage was dissolved by the Third Additional Family Court, Chennai, only on 9 March 2021. The family court's order also recognised the earlier release deed.
The authority concluded that the parties remained husband and wife on the execution date. Because an instrument is chargeable at the rate applicable on its execution date, Release Deed P40/2021 was classified under Article 55A of the Indian Stamp Act, 1899.
The District Registrar's decision was set aside, and Mrs. V. Bhuvaneshwari's revision petition was allowed. The ruling directly affects Release Deed P40/2021 and the associated deficit stamp duty demand.
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Common questions
Was the couple already divorced when the release deed was signed?
No. The release deed was executed on 22 February 2021, and the marriage was dissolved by the family court on 9 March 2021.
Why did the authority treat the execution date as important?
The authority stated that an instrument is chargeable at the rate applicable on its execution date. On that date, the releasor and releasee remained husband and wife.
Does Mrs. V. Bhuvaneshwari have to pay the Rs.2,55,000 deficit demanded by the District Registrar?
The Chief Controlling Revenue Authority and Inspector General of Registration set aside the District Registrar's decision requiring that deficit and allowed the revision petition.
How was Release Deed P40/2021 finally classified?
The Chief Controlling Revenue Authority and Inspector General of Registration classified the document under Article 55A of the Indian Stamp Act, 1899.
