Official guidance, Tamil Nadu land law
D.Dis.No.33968/P1/2020, Revision Petition on Lease Period and Stamp Duty
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued D.Dis.No.33968/P1/2020 on 16 July 2024 concerning the stamp duty classification of a lease deed registered as Document Number 969/2020 at the Joint 1 Sub Registrar Office, Chennai Central. The authority set aside the Joint 1 Sub Registrar, Chennai Central order dated 3 November 2020, ruled that the earlier lease and the period without a registered lease could not be added to the current 18 year lease, and classified the document under Article 35(a) of the Indian Stamp Act, 1899.
What the proceedings decide
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, decided a revision petition filed by M/s. Fixit Private Limited against the stamp duty determination made by the Joint 1 Sub Registrar, Chennai Central, acting in the cadre of District Registrar.
The disputed document was a lease deed executed on 18 June 2020 between M/s. A.C.K. Educational Trust as lessor and M/s. Fixit Private Limited as lessee. It leased land and a building for 18 years, from 1 October 2018 to 30 September 2036.
Why additional stamp duty was demanded
The Joint 1 Sub Registrar treated the lease as extending an earlier registered lease that began on 10 November 1995. On that basis, the officer counted a total lease period of 41 years, including the earlier nine year lease and the period between the earlier lease and the new deed.
The document was classified under Article 35(b) of the Indian Stamp Act, 1899. The officer determined deficit stamp duty of Rs.1,62,980 and a penalty of Rs.520. M/s. Fixit Private Limited paid these amounts, after which the pending document was registered as Document Number 969/2020 and returned.
Findings of the registration authority
The Chief Controlling Revenue Authority and Inspector General of Registration found that:
- A period left out between an expired lease and a current lease deed cannot be treated as part of the current lease merely for calculating its duration.
- The nine year period covered by the earlier registered lease also could not be added to the current lease deed.
- A lease of immovable property, other than for agricultural or manufacturing purposes, that is not put into writing is treated as a month to month lease under the cited provisions of the Transfer of Property Act, 1882.
- The current document was therefore a lease classifiable under Article 35(a) of the Indian Stamp Act, 1899.
The authority upheld the revision petition and set aside the Joint 1 Sub Registrar, Chennai Central order dated 3 November 2020.
Who may be affected
The decision directly concerns M/s. A.C.K. Educational Trust, M/s. Fixit Private Limited and Document Number 969/2020. Its reasoning is relevant to landlords, tenants and professionals dealing with a new lease after an earlier registered lease has expired, particularly where there is an intervening period without a registered lease deed.
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
Can an expired lease and the gap before a new lease be added to calculate the new lease period?
Not in the document considered here. The Chief Controlling Revenue Authority and Inspector General of Registration ruled that neither the earlier registered lease period nor the left out period could be treated as part of the current 18 year lease.
What happened to the deficit stamp duty and penalty demand?
The determination of Rs.1,62,980 as deficit stamp duty and Rs.520 as penalty was set aside. The source states that M/s. Fixit Private Limited had already paid those amounts, but it does not record any refund direction.
How was the 2020 lease deed finally classified?
The Chief Controlling Revenue Authority and Inspector General of Registration classified it as a lease under Article 35(a) of the Indian Stamp Act, 1899.
Does the decision cancel the registered lease deed?
No. The source states that the deed was registered as Document Number 969/2020 and returned to the registrant. The decision set aside the earlier stamp duty classification and determination.
