Indian Stamp Act | Sisters Relinquishing Property Rights In Favour Of Co-Owner Brother Is Not 'Gift': Delhi High Court

The Delhi High Court has held that relinquishment of rights in a property by the sisters (co-owners) in favour of their brother (another co-owner) cannot be said to be a Gift for the purposes of the Indian Stamp Act, 1899.A division bench comprising Justices Anil Kshetarpal and Harish Vaidyanathan Shankar held thus while dealing with an appeal preferred by a brother, following impounding of the relinquishment deeds executed by his five sisters in his favour.As per facts, their parents jointly owned the property and the Appellant bequeathed 50% of the same on their father's death.On their mother's demise, the property devolved upon all the siblings including the five sisters. However, the latter had executed Relinquishment Deeds in favour of the Appellant. These deeds however came to be treated by the district authorities as Gift Deeds and were impounded on account of deficient stamp duty.The question before the Court thus was whether for the purposes of the Stamp Act, the relinquishment of rights in a property by the sisters (co-owners) in favour of their brother (another co-owner) can be treated as Gifts?The High Court observed that the transaction was between the family members, wherein the chances of economic consideration are remote. Hence, it was of the view that Relinquishment Deeds had only “added a title” to the already existing title of the Appellant. “Therefore, an error was committed in the Impugned Order by treating the RDs as deeds of gift for the purposes of the Stamp Act,” it held.Reference was made to Chella Subbanna & Anr. v. Chella Balasubbareddi & Ors. (1945) where a Full Bench of the Madras High Court considered whether a coparcener, irrespective of the partition of the family property, can relinquish his own interest in favour of the other coparceners. It was held that relinquishment by one coparcener of his interest in the family estate in favour of the members of the coparcenary does not amount to an alienation; it merely amounts to an extinction of his interest in favour of the others.Relying on this, the High Court held, “Relinquishment does not tantamount to an alienation of rights, and an RD between the co-owners holds equal force as an RD between the coparceners.”As such, the Court ordered the district authorities to release the impounded documents.Appearance: Mr. D.N. Goburdhun, Sr. Adv. with Mr. Archit Chauhan, Mr. Attin Shankar Rastogi, Mr. Shivkant Arora, Mr. Adil Vasudeva and Ms. Saloni, Advs. for Appellant; Mr. Abhinav Sharma, Adv. for RespondentsCase title: Ramesh Sharma v. GNCTDCitation: 2025 LiveLaw (Del) 1276Case no.: LPA 346/2020Click here to read order

Indian Stamp Act | Sisters Relinquishing Property Rights In Favour Of Co-Owner Brother Is Not 'Gift': Delhi High Court

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