17 May 2024 Property Law >> Personal Law   |   Property Registration >> Personal Law   |   Taxation and Duty >> Property & Real Estate  

In a recent case, the Supreme Court of India ruled in favor of a buyer who sought a refund of stamp duty paid for a property transaction. The buyer, a victim of fraud, was initially denied the refund due to a technicality.

The buyer had paid the stamp duty for the registration of a conveyance deed. However, they later discovered that the seller had already sold the property to another party. The buyer promptly applied for a refund of the stamp duty, but their application was rejected because it was filed before a cancellation deed was signed with the seller.

The buyer appealed the decision, arguing that they were a bonafide purchaser who had been defrauded. They emphasized that they had acted quickly to pursue legal remedies and that their application for refund was filed within the time limit from the date of the stamp duty purchase.

The Supreme Court agreed with the buyer. The court pointed out that the requirement for a cancellation deed shouldn't prevent a refund application from being submitted within the legal timeframe. They highlighted a previous case where the court had ruled that the government shouldn't rely on technicalities when dealing with a citizen who has a legitimate claim.

Considering these factors, the Supreme Court allowed the appeal and directed the state to refund the full amount of stamp duty paid by the buyer. This decision serves as a reminder that authorities should be flexible in situations where citizens are victims of fraud and have acted in good faith.

  MAHARASHTRA SPECIAL PROVISION FOR PAYMENT OF STAMP DUTY ACT, 1974