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HELD the provisions of Order XXI Rule 84 and 85 of the Code of Civil Procedure, 1908, are mandatory and non-compliance with these provisions renders the sale proceedings null and void – the property shall forthwith be re-sold.
Bysclaw
Feb 16, 2023By sclaw
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Maharashtra Stamp Act, 1958 — Section 4 — The appellants sought a declaration and injunction in a civil suit — The defendants requested impounding of six documents related to property transactions, claiming they were not duly stamped — Whether the appellants are liable to pay stamp duty and penalty on agreements to sell executed prior to the sale deed —The appellants argued that since the sale deed was registered and stamp duty paid, the prior agreements did not require separate stamping —The respondents contended that the agreements included a clause about the transfer of physical possession, necessitating stamp duty —The Supreme Court dismissed the appeal, affirming the High Court’s decision to impound the documents and send them for adjudication of stamp duty and penalty —The court emphasized that the agreements to sell were separate transactions requiring individual stamp duty, as they included clauses for possession transfer —The court referred to Section 4 and Explanation I to Article 25 of Schedule I, concluding that the agreements were conveyances requiring stamp duty — The appeal was dismissed, and the appellants were directed to pay the appropriate stamp duty and penalty on the impounded documents.
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