'Amnesty From Penalty Under Stamp Act Does Not Create Right Of Registration Of Instrument Beyond Limitation Period': Bombay High Court

The Bombay High Court has held that payment of stamp duty under the Maharashtra Stamp Duty Amnesty Scheme, 2023, cannot override the statutory time limits prescribed under the Registration Act, 1908, for presentation of documents. It dismissed a petition challenging the refusal to register a 1987 Development-cum-Sale Agreement despite payment of stamp duty under the Amnesty Scheme.Justice Madhav J. Jamdar was hearing a writ petition filed by Atul Projects India Pvt. Ltd., which had sought to direct the Sub-Registrar to register an agreement dated October 4, 1987. The company had participated in the 2023 Amnesty Scheme and paid ₹3.2 lakh in stamp duty, expecting that the agreement, although executed nearly 36 years earlier, would be registered. The Sub-Registrar refused registration by letter dated February 13, 2024, citing Circulars dated December 22, 2011, and November 30, 2013, which clarified that documents outside the statutory registration period cannot be accepted unless re-executed and duly stamped again.The petitioner argued that, as per the Amnesty Scheme, even the instruments which have not been presented for registration, though executed between 1st January 1980 to 31st December 2020, were given the benefit of the Amnesty Scheme. He contended that a legitimate expectation in the general public is created that after payment of the stamp duty under the Amnesty Scheme, the instrument shall be registered without any further demand for the stamp duty. Rejecting the plea, the Court held:“…as per the Amnesty Scheme, in fact, the promise which has been given by the State Government is that if the proper stamp duty as per the Amnesty Scheme is deposited within the time limit provided in the Amnesty Scheme, then by exercising power under Section 9, the State Government may reduce, remit or compound prospectively or retrospectively, in the whole or any part of the duties or penalty on the instruments.”The Court emphasized that the purpose of the Amnesty Scheme is in consonance with the object of the Stamp Act, i.e., to secure revenue collection, whereas the Registration Act serves to maintain a record of documents of title in public interest and prevent fraud to the public. It said that there is no power, either with the officer or the High Court, to extend the time period provided for presentation of a document for registration, with some limited exceptions.“…the High Court cannot in its Writ Jurisdiction extend the statutory period under the Registration Act for presentation of a document for registration. However, the only limited exception is where the delay in presenting the document was not attributable to the Petitioner on account of some impossibility or by virtue of an act of Authority,” the court observed.Accordingly, the Court dismissed the writ petition.Case Title: Atul Projects India Pvt. Ltd. v. State of Maharashtra & Ors. [Writ Petition (L) No. 12995 of 2024]Click Here To Read/Download Order

'Amnesty From Penalty Under Stamp Act Does Not Create Right Of Registration Of Instrument Beyond Limitation Period': Bombay High Court

Saksham Vaishya

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