M. C. Birla & Ors. v. Arvind Birla & Ors.

Delhi High Court · 25 Jul 2018 · 2018:DHC:4512

Prathiba M. Singh

O.M.P. 556/2006

2018:DHC:4512

civil petition_allowed Significant

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The Delhi High Court held that stamp duty on family settlement property transfers is payable only on ownership changes calculated at 2012 circle rates and directed drawing up of the decree sheet accordingly.

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O.M.P. 556/2006
HIGH COURT OF DELHI
Date of Decision: 25th July, 2018

O.M.P. 556/2006
SHRI M. C. BIRLA & ORS. ..... Petitioners
Through: Ms. Mamta Mehra, Mr. Tanmaya Mehta & Ms. Sangeeta Chandra, Advocates. (M:9810001790)

VERSUS

SHRI ARVIND BIRLA & ORS. E+ ..... Respondent
Through: Mr. Sanjay Ghose, ASC for GNCTD with Ms. Shwetan K. Singh, Advocate. (M:9766446824)

CORAM:

JUSTICE PRATHIBA M. SINGH Prathiba M. Singh, J. (Oral)

I.A. 292/2017

JUDGMENT

1. On 18th July, 2012 this Court had recorded the family settlement entered into between the various members of M. C. Birla family on 12th July, 2012. Statements of the parties were recorded before the Joint substitute the impugned awards dated 28th September, 2006 and 18th October, 2007. Decree sheet was also directed to be drawn up. The said order dated 18th July, 2012 reads as under:

“1. Pursuant to the order passed by the Court yesterday, the statements of the parties were recorded before the Joint Registrar yesterday itself. Each of the parties has made a statement affirming that the disputes between them have been settled in terms of the family settlement

2018:DHC:4512 dated 12th July 2012 a copy of which is enclosed with IA. No. 12572 of 2012.

2. Each of the parties is bound down by the statements made by each of them and by the terms of the family settlement dated 12th July 2012 which will be read as forming part of this order. The family settlement dated 12th July 2012 will substitute the impugned Award dated 28th September 2006 as further amended on 18th October 2007. The said family settlement is binding on all the parties.

3. The petition is disposed of in the above terms. The decree sheet be drawn up accordingly.

4. The Registry is directed to return the original documents on record to the respective parties in accordance with the terms of the family settlement.”

2. Subsequently, the parties moved the present application being I.A. No.292/2017, as the decree sheet was not being drawn up by the Registry and there was a question raised as to the stamp duty liable to be paid. Accordingly, valuation reports were called from the relevant Sub-Division Magistrates. Some of the reports were received and some are yet to be received. Learned counsel for GNCTD was also directed to seek instructions.

3. Today, the Court has heard the parties and the Ld. Counsel for GNCTD, on the issue of stamp duty to be paid on the decree sheet. Considering the nature of the settlement between the parties and the manner in which the properties are to be shared amongst the various members of the family, the following orders are passed in respect of stamp duty payable.

1) In principle, learned counsels for the parties submit that they are willing to bear the stamp duty in respect of such properties, where the ownership of the property is going to be changed, albeit, on the basis of circle rate prevalent in the year 2012. It is accordingly directed that since the decree sheet was passed in 2012, i.e. on 18th July, 2012, the circle rate of 2012 would be applicable for calculation of stamp duty.

2) In respect of properties which continue to vest in the same owners and no change has been effected by virtue of the family settlement, no stamp duty would be liable to be paid.

3) In respect of such properties, which are on lease or rental basis, no stamp duty would be payable as there is no sale or transfer.

4) In respect of some properties co-owners are becoming the full owners of properties. In such cases stamp duty would be liable to paid to the extent of the shares which is now going to vest in them. Accordingly the properties are put in four categories and are segregated for the purposes of clarity.

A. In respect of the following properties, stamp duty would be liable to be paid.

1. B-4/77, SDA, New Delhi.

2. 5956/3, Dev Nagar, Karol Bagh, New Delhi (68.561 sq mtrs) only ground floor.

5,990 characters total

3. Flat No.705, 7th Floor, Suneja Towers-2, District Centre, Janak Puri, New Delhi.

4. C-1, 5th Floor, D-34/3A, AJC, Bose Road, Calcutta-20.

5. 1116/12, Nailwala, Karol Bagh, New Delhi (48 sq.mtrs)

6. 1116, Maker Chambers-V, Nariman Point, Mumbai.

10. B-3/59 SDA, New Delhi.

12. Noida Plot No. B-37, Sector-63, Noida, U.P.

13. Flat No.103, Chennai.

14. Chhawla Village, 34 Bighas bearing Part of Khewat No.104 min and part of Khasra Nos.54/10 (4-16), 11/12 (2-16), 55/6 (4-11), 15/1 (2- 16), 26 min(0-5), 82/8 (2-18), 13(4-13), 14(4-10), 18(4-16), 19/1 (1-

16) and 28(0-3)

15. Behnoor Farm Properties / Uppal Farm, Daruhera, Khasra Nos.215(1- 0), 216 (1-0), 217 (0-19), 218 (0-19), 220 (1-0), 221 (1-0), 222 (1-0), 223 (1-0), 252 (1-0), 253 (1-0), 254(1-0), 255 (1-0), 256(1-0), 257 (1- 0), 258 min (0-5) totalling 15 Bighas 2 Biswas along with built up house situated in Mauza Bhoondka, Tehsil & District Gurgaon, Haryana.

16. B-4/68, Safdarjung Development Area, New Delhi.

17. C-37, Basement, Hauz Khas, New Delhi.

18. 103, First Floor, Tolstoy House, CP, New Delhi.

B. In respect of the following properties, no stamp duty would be liable to paid.

7. Flat No.502, Kasturba Gandhi Marg, New Delhi (Navrang House)

8. 2320/21, Karol Bagh, New Delhi.

9. 3507-3510, 2nd Floor, Karol Bagh, New Delhi.

11. Shop No.95, 119, 120, Yashwant Place, Chanakya Puri, New Delhi.

C. In respect of the following properties, 50% of the stamp duty will have to be paid.

19. Plot No. F62, South City, Village Sirokhera Gurgaon, Haryana (420 sq mtrs)

D. In respect of following property, no stamp duty would be liable to be paid at this stage. However, when the said property is sold to a third party and sale deed/s is executed by Barun Birla and Arun Birla in favour of the new purchaser, stamp duty would be liable to paid in accordance with law.

20. F-59, South City, Gurgaon, Haryana (Half to Arun Birla and half to Arvind Birla admeasuring 420 sq. meters. Valuation may be taken as for F 62 as the size and vicinity of the plot is the same)

4. Registry is directed to draw up the decree sheet within 6 weeks in terms of the above order and the stamp duty shall be deposited within 4 weeks thereafter. If the Registry has any issue with regard to the calculation of the stamp duty, the same shall be put up before this Court with a note. Upon proof of payment of stamp duty, the original decree sheet shall be released to the parties.

5. I.A. is disposed of in the above terms.

PRATHIBA M. SINGH JUDGE JULY 25, 2018

M. C. Birla & Ors. v. Arvind Birla & Ors.

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