D.Dis.No.37968/P1/2018, Cancellation of Settlement Deed Revision
The Chief Controlling Revenue Authority and Inspector General of Registration issued D.Dis.No.37968/P1/2018 on 1 March 2021, allowing a revision petition concerning pending document No.185/2017 at the Sub Registrar Office, Anna Nagar. It set aside the demand treating a cancellation of settlement deed as a gift and directed the Sub Registrar to assess any stamp duty deficiency under Article 58(b) of the Indian Stamp Act, 1899.
What the proceedings decide
D.Dis.No.37968/P1/2018 of the Chief Controlling Revenue Authority and Inspector General of Registration concerns a document titled “Deed of Cancellation of Settlement Deed”. The document sought to cancel a settlement deed dated 12 April 2009, registered as document No.1250/2009 at the Sub Registrar Office, Anna Nagar.
Mrs. E. Vijayalakshmi had executed the original settlement in favour of her son, Mr. P. Siva. She later executed the cancellation document, and her son also signed it.
Why the document was disputed
The Sub Registrar, holding District Registrar cadre, treated the cancellation document as revesting the property through a gift because the settlee, Mr. P. Siva, had signed it. The document was therefore classified under Article 33 of the Indian Stamp Act, 1899.
The Sub Registrar ordered payment of:
- Deficit stamp duty of Rs.1,34,182.
- Penalty of Rs.500.
The cancellation document had already borne stamp duty of Rs.50. Mrs. E. Vijayalakshmi challenged the Sub Registrar’s decision through a revision petition.
Findings of the registration authority
The Chief Controlling Revenue Authority and Inspector General of Registration found that neither Article 58(b) of the Indian Stamp Act, 1899 nor the Registration Act prohibits a settlee from signing a deed revoking a settlement.
The key findings were:
- A settlee’s signature may express consent to the revocation.
- The signature alone does not change a revocation of settlement into a gift.
- The cancellation document was classifiable under Article 58(b).
- The maximum stamp duty stated for that classification was Rs.80.
Result and who is affected
D.Dis.No.37968/P1/2018 allowed Mrs. E. Vijayalakshmi’s revision petition and set aside the Sub Registrar’s earlier decision. The Sub Registrar, Anna Nagar, was directed to collect any stamp duty deficiency in accordance with Article 58(b).
The decision directly applies to pending document No.185/2017 and the parties named in the proceedings. It is also relevant to owners and professionals assessing whether a settlee’s signature on a cancellation or revocation of settlement deed, by itself, makes the document a gift for stamp duty purposes.
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
Does the settlee’s signature automatically make a settlement cancellation a gift?
No. The Chief Controlling Revenue Authority and Inspector General of Registration found that the settlee’s signature, including consent expressed through that signature, does not by itself change the revocation into a gift.
What happened to the deficit stamp duty and penalty demanded by the Sub Registrar?
The decision demanding Rs.1,34,182 as deficit stamp duty and Rs.500 as penalty was set aside. The Sub Registrar was directed to collect any deficiency according to Article 58(b).
What stamp duty classification was applied to the cancellation deed?
The Chief Controlling Revenue Authority and Inspector General of Registration classified the document under Article 58(b) of the Indian Stamp Act, 1899, with a stated maximum stamp duty of Rs.80.
Which property document does the decision directly concern?
It concerns pending document No.185/2017 at the Sub Registrar Office, Anna Nagar, which was executed to cancel settlement deed document No.1250/2009 dated 12 April 2009.
