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Stamp Duty Refund for Developer’s Default & Court Delay – Illegal

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 judgment dated 4.9.2025 of the High Court of Bombay in Writ Petition No.8792 of 2025 of Katmandu Apparel Private Limited   Vs.   The Inspector General of Registration and others

 

There was agreement of sale for purchase of flat.   The petitioner paid stamp duty and the registration charges on 26.12.2013.

 

The petitioner terminated the said agreement on 25.3.2019 for default of the developer to give possession.   The petitioner filed RERA complaint for refund of the amount.

 

The matter was settled in the High Court vide order dated 24.11.2022. Accordingly, the Deed of Cancellation was registered on 28.12.2022.

 After four months, the application for refund of stamp duty was filed. 

 However, by the impugned order dated 13.3.2025, the refund application was rejected on the ground that Cancellation Deed was not executed within five years of the Agreement dated 26.12.2013, in view of proviso to section 48(1) of the Stamp Act.

 In that context, it was HELD that the default of the developer is writ large and It was only when the High Court passed order that the Deed of Cancellation was executed.

 The act of the Court shall prejudice no man and the law does not compel a man to do what he cannot possibly perform, apply with equal force to the facts of the case.

 In these circumstances, interest was granted since the petitioner was deprived of the stamp duty refund from the date of application.

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