Interim Stay granted subject to Deposit of 50% of Demand raised by Collector of Stamp: Delhi HC directs to Deposit amount in Registry [Read Order]

The Delhi High Court directed to deposit the amount in the Registry of the court as there was interim stay granted subject to deposit of 50% of demand raised by Collector of Stamp.

The Present appeal has been filed by the appellant challenging the order dated 2nd May, 2024 passed by the Single Judge of the Delhi High Court to the extent that the interim stay has been granted subject to deposit of 50% of the demand raised by the Collector of Stamps, Chanakyapuri.

The counsel for the appellant submitted that the appellant had approached the Collector of Stamps with an application under Section 31 of the Indian Stamp Act, 1899 (‘Stamp Act’) for determination of the stamp duty payable. However, the appellant after much delay on 1st April, 2024 received an order from the Collector of Stamps inter alia indicating that the appellant is liable to pay stamp duty alongwith penalty totalling to Rs.1,00,20,167/-.

It was also submitted that that the order passed by the Collector of Stamps is wholly without jurisdiction and directing the appellant to make a deposit of 50% of the demand raised as a pre-condition would prima facie legitimize an order passed without jurisdiction.

The counsel for the respondent submitted that the writ petition itself is not maintainable as the appellant has an alternative effective remedy of approaching the Chief Controlling Revenue Authority under Section 56 of the Stamp Act.

A Division Bench of Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora observed that “Keeping in view the fact that the matter is pending adjudication before the learned Single Judge, this Court does not deem it appropriate to comment on the merits of the case. However, keeping in view the facts and circumstances of the case, it reduces the amount of deposit to 25% of the demand raised by the Collector of Stamps. Let the said amount be deposited with the Registry of this Court within four weeks.”

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