D.Dis.No.23826/P1/2019, Revision Petition on Release Deed Stamp Duty
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued order D.Dis.No.23826/P1/2019 dated 24 July 2023, allowing a revision petition concerning a family release deed filed at the Sub Registrar Office, Kodambakkam. It classified the deed under Article 55A of the Indian Stamp Act, 1899, and set aside the Sub Registrar's order demanding deficit stamp duty of Rs.1,26,03,000 and a penalty of Rs.5.
What the decision covers
Order D.Dis.No.23826/P1/2019 dated 24 July 2023 was issued by the Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, under section 56(1) of the Indian Stamp Act, 1899. It decides a revision petition filed by Mr.J.Thakur Bakshani against the Sub Registrar, Kodambakkam, concerning pending document No.P.192/2016.
The document was a release deed executed on 18 April 2016. Mrs.Poonam U Rajai, Mrs.Meera Khemlar and Mr.J.Haresh Bakshani were the executants, and Mr.J.Thakur Bakshani was the claimant.
Property and family background
Pending document No.P.192/2016 concerned the release of a 30 percent share out of a 40 percent share in property valued at Rs.3,00,00,000. The deed bore stamp duty of Rs.25,000.
Key facts considered were:
- 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 intestate on 9 April 2000.
- Her children inherited her interest as legal heirs.
- The releasors were two sisters and a brother of the releasee.
- The releasors were not partners in the partnership firm.
Why the earlier demand was set aside
The Sub Registrar, Kodambakkam, had classified the deed under Article 55(D)(ii) of the Indian Stamp Act, 1899. On that basis, the Sub Registrar demanded deficit stamp duty of Rs.1,26,03,000 and a penalty of Rs.5.
The Chief Controlling Revenue Authority and Inspector General of Registration found that the releasors received their rights through succession and were releasing those rights to their brother. It also found that the two partner firm stood dissolved by operation of law after one partner died. Classification under Article 55(D)(ii) was therefore held to be inapplicable.
Result and practical relevance
Order D.Dis.No.23826/P1/2019 classified this particular release deed under Article 55A of the Indian Stamp Act, 1899. The revision petition was allowed and the Sub Registrar's demand was set aside.
The decision is relevant to buyers, owners and professionals examining a release of inherited property rights between siblings, particularly where the property had belonged to a partnership firm but the releasors themselves were not partners.
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 the deficit stamp duty demand against this release deed cancelled?
Yes. The Chief Controlling Revenue Authority and Inspector General of Registration set aside the Sub Registrar's demand for Rs.1,26,03,000 in deficit stamp duty and a penalty of Rs.5.
How was the release deed finally classified?
The release deed was classified under Article 55A of the Indian Stamp Act, 1899.
Why was the partnership related classification rejected?
The releasors were not partners in M/s B.N.T.Connections. They had received their rights by succession from their deceased mother, and the authority found that the two partner firm stood dissolved after her death.
Does the decision concern a release between family members?
Yes. The releasors and releasee were sisters and brothers, and the authority found that their relationship came within the definition of family members cited in the decision.
