Friday, March 6, 2026
Latest:
2025December 2025High CourtLatestLegalReal Estate

Bombay HC Rules Agreement to Lease of CIDCO Plot Attracts only Agreement Stamp Duty of Article 5 & Not Article 36

legaldeli

The petitioner was allotted plot by the Cidco in Navi Mumbai and paid full premium of Rs.3,73,51,450/-.

On 13.10.1995, the CIDCO executed the Agreement to Lease

on a stamp paper of Rs.20/- under Article 5(h) of Schedule 1 to the Stamp Act, for four years and to execute the lease deed on completion of the works.

By the notice dated 21.2.1998, the respondent no.1 demanded Rs.26,14,695/- as payable under Article 36(a)(4) and (C) of Schedule 1 of the Stamp Act.

Agreement to lease, it is settled, is not a lease creating a demise or a right or interest favour of the Petitioner. Even the entire agreement refers to the Petitioner as licensee only. The said Agreement to lease does not create a present demise and is therefore not chargeable with stamp duty along with penalty and interest under Article 36 of Schedule I of the Stamp Act. The Petitioner was a mere licensee with no right or interest or demise in the said land. It cannot, therefore, be said that since vide the said Agreement the intention of the parties was to enter into a lease or the term license used in the said agreement is used so as to avoid immediate payment of stamp duty. The said agreement does not create a present demise in favour of the Petitioner and the status of the Petitioner as licensee would only change only after the actual execution of the lease deed which would be executed only after the works as contemplated in the agreement are fulfilled and therefore the said agreement cannot be termed as a lease.

By the Order dated 10.3.1998, the respondent no.2 passed an order for the deficit stamp duty and interest at 2@ per month.

Judgment dated 18.12.2025 of the High Court of Bombay in Writ Petition No.5635 of 2005 of Deepak Fertilizers and Petrochemicals   Vs.  The Chief Controlling Revenue Authority and others

You May Also Like

Bombay HC Flags Gaps in MSME Arbitral Award – Fabricated Invoices & Post-Dated GST Returns

legaldeli

Chartered Accountants – Restrictions of ICAI on number of statutory tax audits

legaldeli

Housing Society Maintenance Dues Enforceable against Developer – Title Dispute Not a Shield

legaldeli

Leave a Reply

Your email address will not be published. Required fields are marked *

I HAVE READ THE DISCLAIMER AND AGREE TO IT.

User Acknowledgement

By proceeding further and clicking on the "AGREE" button herein below, I acknowledge that I of my own accord wish to know more about LegalDeli for my own information and use. I further acknowledge that there has been no solicitation, invitation or inducement of any sort whatsoever from LegalDeli or any of its members to create an Attorney-Client relationship through this knowledge site. I further acknowledge having read and understood the Disclaimer below.

Disclaimer
About: This knowledge-site (www.LegalDeli.in) is owned and operated by LegalDeli (“NDA”), and is a resource for your informational and educational purposes only.

No Warranty: NDA does not warrant that any content or information contained on this knowledge-site is accurate, correct, complete or up-to-date, and hereby disclaims any and all liability to any person for any actual or threatened loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or otherwise. NDA assumes no liability for the interpretation and/or use of the content and/or information contained on this knowledge-site, nor does it offer any warranty of any kind, either expressed or implied in relation to such content or information.

Third-Party Links: NDA does not intend that links / URLs contained on this knowledge-site re-directing users to third party websites be considered as referrals to, endorsements of, or affiliations with any such third party website operators. NDA is not responsible for, and makes no representations or warranties, express or implied, about the content or information contained on such third party websites to which links may be provided on this knowledge-site.

No Legal Advice: By clicking ‘I agree’ and proceeding further, you acknowledge, represent and undertake that you on your own accord wish to know more about NDA, its capabilities and research content and information contained on the knowledge-site, for your own knowledge and personal use. The content and information contained on this knowledge-site should not be construed as nor relied upon as legal advice. You as a reader or recipient of content or information contained in this knowledge-site should not act, nor refrain from acting, based upon any or all of such content or information, but should always seek the advice of competent legal counsel licensed to practice the relevant law in the appropriate jurisdiction.

No Attorney-Client Relationship: This knowledge-site is not intended to be and you should not consider the content or information contained therein to be an advertisement, solicitation, inducement or invitation for an Attorney-Client relationship. Transmission, receipt or use of this knowledge-site, including content and information contained therein, does not constitute nor create an Attorney-Client relationship between NDA and you.

I Agree