Section 48 of the Maharashtra Stamp Act, 1958 – Application for refund of stamp duty of cancelled agreement of sale was rejected since it was not done within a period of five months

Section 48 of the Maharashtra Stamp Act, 1958 – Application for refund of stamp duty of cancelled agreement of sale was rejected since it was not done within a period of five months

On 10.11.2014, the appellant and the developer executed an agreement of sale for the flat.   The stamp duty of Rs.4,76,000/- with registration charges of Rs.30,000/- were paid.

The building was not constructed nor the consideration was refunded to the petitioner.   The petitioner initiated proceedings before RERA which culminated in appeal by the Developer in RERA  Appellate Tribunal.  In the appeal, consent terms were filed.  The deed of cancellation was executed on 9.3.2021.

On 31.3.2021, the petitioner applied for stamp duty.  It was rejected by the order dated 27.4.201 on the ground that the agreement of sale dated 10.11.2014 was not cancelled as provided in proviso to section 48(1) of the Stamp Act, 1958.

HELD The petitioner had availed and pursued diligently legal remedies under RERA Act.  The delay in execution of the deed of cancellation of agreement of sale was not attributable to the petitioner.  The law recognizes impossibility of performance as a ground to relieve a person from forfeiture and penalty. Two maxims “actus curiae neminem gravabit” that an act of Court shall prejudice no man and “lex non cogit ad impossibilia” that law does not compel a man to do what he cannot possibly perform.   Thus, the writ petition was allowed.

Judgment dated 11.1.2024 in Writ Petition No.9657 of 2022 of Satish Buba Shetty Vs. Inspector General of Registration and Collector of Stamps and Others