Can Agreement For Co-Working Space Be Termed As Lease Or Sub-Lease? Delhi High Court To Decide In India Mart’s Plea

The Delhi High Court is set to consider if an agreement for co-working space be termed as a lease or sub-lease and whether stamp duty would be liable to be paid on such an agreement or not.Justice Prathiba M Singh issued notice on a plea moved by India Mart Intermesh Limited challenging an order passed by the Office of Collector of Stamps on December 19, 2022, upholding the impounding of an agreement entered into between it and an entity namely Top Technologies Pvt. Ltd. to let out a co-working space.India Mart availed of the facilities for ten seats in a property from Top Technologies Pvt. Ltd and presented the agreement to the Collector of Stamps who termed it as a lease.The case of India Mart is that the use of co-working spaces cannot be termed as lease or sub-lease. The ground of impounding the agreement in question was that it was presented in the form of a general agreement whereas it was a lease agreement and attracted stamp duty. India Mart was directed to deposit a sum of Rs.10,000 as stamp duty and Rs.5,000 as penalty towards the agreement.Issuing notice in the plea, Justice Singh said that the issue “deserves consideration” as the nature of the agreement in case of co-working spaces would have to be examined and seen as to whether the necessary elements of a lease exist or not. “In the meantime, a sum of Rs.10,000/- be deposited with the Collector of Stamps within two weeks without prejudice to rights and contentions of the Petitioner. The same shall be subject to the outcome of this writ petition,” the court said while staying the impugned order subject to compliance of its direction.The matter will now be heard on October 11.Advocates Naman Joshi, Ritika Vohra and Guneet Sidhu appeared for India Mart. ASC Udit Malik and Advocate Vishal Chanda appeared for the respondents.Title: INDIA MART INTERMESH LIMITED v. COLLECTOR OF STAMPS, KALKAJI & ANR.Click Here To Read Order

Can Agreement For Co-Working Space Be Termed As Lease Or Sub-Lease? Delhi High Court To Decide In India Mart’s Plea

Nupur Thapliyal

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