Supreme Court of India
C.J. PAUL AND ORS.versusDISTRICT COLLECTOR AND ORS.
- Citation
- 2009 INSC 980
- Decided
- 31 July 2009
- Disposal
- Appeal(s) allowed
- Bench
- S B SINHA
Holding
Amendments to Sections 47A and 198 of the Indian Stamp Act, Tamil Nadu, are prospective only; the limitation periods applicable at the time of the deeds (two years for 47A and four years from registration for 198) govern, rendering the proceedings barred.
Summary
The appellants purchased land in Tamil Nadu by deeds dated 1‑Feb‑1990. The Sub‑Registrar became aware of the deeds only on 30‑Mar‑1996 and, in 1998, initiated proceedings under Sections 47A(1) and 198 of the Indian Stamp Act, 1899, to recover deficit stamp duty. The appellants contended that the actions were barred by the two‑year limitation for Section 47A and the four‑year limitation for Section 198, both measured from the date of registration, and that later amendments extending the limitation periods could not apply retrospectively. The Supreme Court held that statutes conferring penal jurisdiction must be strictly construed, that the 2000 amendments to Sections 47A and 198 were prospective only, and that the limitation periods in force at the time of the deeds (two years for 47A and four years from registration for 198) governed. Consequently, the proceedings were barred by limitation and the High Court’s order was set aside. The appeal was allowed.
Issues considered
- Whether Section 47A of the Indian Stamp Act, as amended in 2000, can be applied retrospectively to extend the limitation period for initiating penalty proceedings.
- Whether the limitation period for Section 198 is to be computed from the date of registration or from the date of receipt of the copy in Tamil Nadu, and the effect of the 1999 amendment.
- Whether a penal statute can be given retrospective effect in the absence of express provision.
- Whether the court may supply a casus omissus in interpreting the limitation provisions.
Legislation cited
- Indian Stamp Act, 1899s. 198, s. 40, s. 47A
- Registration Act, 1908s. 19-8(1)
Subjects
Indian Stamp ActLimitation periodPenal statuteRetrospective amendmentStamp dutySection 47ASection 198Strict construction
Judgment
[2009] 12 S.C.R. 233
C.J. PAUL AND ORS. A
'* v.
DISTRICT COLLECTOR AND ORS.
(Civil Appeal No. 4968 of 2009)
JULY 31, 2009
B
[S.B. SINHA AND DEEPAK VERMA, JJ.]
Indian Stamp Act, 1899 - ss. 47A and 198 -
Proceedings under - Limitation period - Interpretation and/
or application of the provisions, as amended by the State of C
Tamil Nadu - Discussed.
Interpretation of Statute - Strict construction - Penal
statute - Held: A statute of/imitation conferring jurisdiction
upon statutory authorities to impose penalty must be D
construed strictly- A penal statute, unless expressly provided,
)
cannot be given retrospective effect.
In 1990, the appellants purchased some properties
situated in the State of Tamil Nadu by registered deeds
of sale. The Sub-Registrar came to know of the execution E
of the said sale deeds in 1996 and thereafter in 1998
initiated proceedings under Sections 47A(1) and 198 of
the Indian Stamp Act, 1899 for collection of deficit stamp
duty in respect of the said deeds.
F
Interpretation and/or application of the provisions of
the Act as amended by the State of Tamil Nadu was in
question in the present appeal.
It was contended by the appellant that proceedings
under Section 47A could be initiated only within a period G
._,, of two years from the date of registration and since the
same was initiated after more than eight years, the same
was barred by limitation. It was furthermore contended
233 H
234 SUPREME COURT REPORTS [2009] 12 S.C.R.
A that amendments to the Act subsequent to execution of
the sale deeds in question were not attracted to the facts ""'\
of the present case.
·Allowing the appeal, the Court
B HELD: 1.1. Section 47A of the Indian Stamp Act, 1899
was inserted in the State of Tamil Nadu by Act 24 of 1967.
The period of limitation was two years for initiation of
proceedings thereunder. Section 47A underwent an
amendment by Tamil Nadu Act 1 of 2000 which came into
C force with effect from 6-3-2000 whereby and whereunder
the period of limitation was extended to five years. The
contention raised that the subsequent amendment
carried out by Act 1 of 2000 was only clarificatory in
nature, cannot be accepted. [Paras 11 and 17) [241-A-C;
D 242-E]
1.2. Section 198 of the Act was inserted by Tamil
Nadu Act 43 of 1992. The proviso appended to Section
198(4) underwent an amendment insofar as instead and
E place of "from the date of registration of such
instrument", the words "from the date of receipt of the
copy of such instrument in the State of Tamil Nadu under
the Registration Act, 1908" were inserted. The said
amendment came into force with effect from 22-2-2000 in
terms of Tamil Nadu Act 39 of 1999. The limitation period
F of four years was thus provided for in terms of the
proviso appended to Section 198(4) but the statute,
which wa~ applicable at the relevant point of time,
provided that the period of limitation was four years from
the date of registration. The State advisedly used the
G words "four years" from thE~ date of registration. Only at
a later stage, wisdom dawm~d on them that they may not
be able to find out the evasion of stamp duty within the
aforementioned period, am1mded the said provision so
that the period of limitation may start from the date of
H knowledge and not from the date of registration. The said
C.J. PAUL AND ORS. v. DISTRICT COLLECTOR AND 235
ORS.
amendment is also not retrospective in nature. [Paras A
9,10,14 and 17] [239-E; 241-A, B, F, G; 242-F]
1.3. Sections 47A and 198 provide for penalty. A
statute of limitation conferring jurisdiction upon the
statutory authorities to impose penalty must be
8
construed strictly. A penal statute unless expressly
provided, cannot be given a retrospective effect. [Para 15]
[241-H; 242-A-B]
1.4. The amendments carried out by the State of Tamil
Nadu in the Act must be held to have a prospective C
operation only. Ordinarily in a case of this nature, the date
of knowledge would be the starting point for computing
the period of limitation. The authorities of the State of
Tamil Nadu came to know of the execution of the deeds
of sale dated 1-2-1990 only on 30-3-1996. They could D
have initiated a proceeding, if any, within a period of two
years from the said date as provided for in Section 47A.
However, in terms of Section 198, the period of limitation
provided was four years from the date of registration and
not from the date of knowledge. [Para 16] [242-8-D] E
1.5. It is now well-settled that the Court cannot
supply casus omissus. [Para 18] [242-G-H]
Ritesh Agarwal and Another v. Securities and Exchange
Board of India (2008) 8 SCC 205 and Southern F
Petrochemical Industries Co. Ltd. v. Electricity Inspector &
ETJO and Others (2007) 5 SCC 447, relied on.
Case Law Reference:
(2008) 8 sec 205 relied on Para 15 G
(2007) s sec 447 relied on Para 17
CIVIL APPELLATE JURISDICTION : Civil Appeal No.
4968 of 2009.
H
236 SUPREME COURT REPORTS [2009] 12 S.C.R.
-
A From the Judgment & Order dated 21.11.2006 of the High
Court of Judicature at Madras in W.A. Nos. 2922, 2923 2924 .,..,
and 2925 of 2001.
K. Rajeev for the Appellant.
8 R. Sundaravaradan, R. Nedumaran for the Respondents.
The Judgment of the Court was delivered by
S.8. SINHA, J. 1. Leave granted.
C 2. Interpretation and/ or application of the provisions of the
Indian Stamp Act, 1899 (for short "the Act") as amended by the
State of Tamil Nadu is in question herein.
It arises out of the following factual matrix:
D
Appellants herein purchased some properties situate in
Devala Village, Gudalur Taluk, Nilgiris in the State of Tamil Nadu
by a registered deed of sale dated 1.02.1990. Some lands are
situated in the State of Kerala also. The details of the lands
purchased by them in the State of Tamil Nadu are as under:
E
SI. Name of the Survey No. Extent Doc. No.
No. purchaser and date
j.
1. C.J. Paul, 146, 147/2,2,3 44.00 382/90 -
F Malapuram Acres 2.2.90
2. C.P. Jose, -do- 44.01 381/90 -
Malapuram 2.2.flO Acres
3. V.M. Mary, -do- 44.00 383/90 -
G
Malapuram 2.2.90 Acres
'
4. C.J. Mathews, -do- 44.00 384/90 -
Malapuram Acres 2.2.90
H ..
C.J. PAUL AND ORS. v. DISTRICT COLLECTOR AND 237
ORS. [S.8. SINHA, J.]
3. The Sub - Registrar, Gudalur came to know of the A
#· execution of the said deeds of sale on or about 30.03.1996. It
initiated a proceeding purported to be under Section 47A (1)
of the Act and Section 198 thereof. The proceedings were
initiated for collection of deficit stamp duty on or about
•, 5.05.1998 by issuing a letter to the then Collector under the Act. B
However, notice in Form I was sent on 7.06.1998.
-~~ 4. Appellants filed a writ petition questioning the legality
of said notice. The said writ petition was dismissed by a
·~
·learned Single Judge, stating:
)
c
-{
"12. From the facts' and circumstances of the case, it is
clear that all the transactions appear to be not bonafide
and many questions in reference to the nature and purport
of these transactions remain unanswered like for instance.
Why when the family members get a sale deed in respect D
of about 176 acres in Tamil Nadu they should go to Kerala
J
to combine with a sale of 16 cents, as to why the vendor
"' father Thomas assignee of these lands should purchase
16 cents on 04.09.1990 so as to sell the lands in Tamil
Nadu. After lands having vested as per Section 3 of the E
Gudalur Janmam Estates (Abolition and Conversion into
Ryotwari) Act (XXIV of 1969) Jenmis are entitled only
ryotwari patta if they had been cultivating on the appointed
-~ day i.e. on 01.06.1969, and for the tenants under Jenmis
. if they had been personally cultivating. In this case one F
Mathew Kutty is said to have purchased in the year 1967
and in turn sold to Father Thomas. All these prima facie
appears are made with ulterior purpose.
13. Learned counsel for the petitioners referred to the
judgment in M. Ponnusamy & Others Vs. District G
+ Collector (1992) 2 Law Weekly 231, wherein a learned
Judge of this Court has taken the view that reference under
Section 47-A(1) of the Act should be immediately after
completion of the registration or sooner the registration is
completed and at any rate, within three weeks from the H
238 SUPREME COURT REPORTS [2009] 12 S.C.R.
A date of completion e>f registration of the document. The
said decision is of no assistance to the petitioner. In this ~
case, the petitioners were called upon to pay the difference
of duty immediately after receipt of document in their office
and a reference notice was issued to the petitioners which
B are impugned in these writ petitions in the year 1998 itself
and after enquiry, the Deputy Collector has passed an
order determining the market value in November, 2000.
Hence, no question of limitation arises in these matters."
-y
c Bench5. Writ appeals were preferred thereagainst and a Division
of the High court, by reason of the impugned order, '
\___
dismissed the said appeals, stating:
"5. It is not in dispute that the properties covered under the
documents lie within the State of Tamil Nadu. But the
D documents were registered at Kalpetta, Kerala State. As
per Section 19-8(1) of the Act, unless such instrument is
~
received in the State of Tamil Nadu, no action can be taken
for undervaluation. The learned Single Judge, by relying on
the said provision and after noting that those. documents
E registered in February, 1990, were received by the Office
of the Sub Registrar, Gudalur only on 30. 03.1996 and the
proceedings were initiated under Section 19-B of the Act
and further proceedings for reference were made on
05.05.1998, has arrived at a conclusion that the action
F taken by the authorit~r is not barred by limitation. On going
through the relevant provision, particularly, Section 19-8(1)
of the Act and of the factual information that those
documents were registered at Kerala in February 1990,
were received by the Office of the Sub Registrar, Gudalur
only on 30.03.1996, we are in entire agreement with the
G
conclusion arrived at by the learned single judge.
Accordingly, finding no merits, we dismiss all the writ ....
appeals. No costs."
6. Mr. K. Rajeev, learned counsel appearing on behalf of
H the appellants would contiend that a proceeding under Section
.
C.J. PAUL AND ORS. v. DISTRICT COLLECTOR AND 239
ORS. (S.B. SINHA, J.]
47A of the Act could be initiated only within a period of two A
f/< years from the date of registration and as the same has been
initiated after more than eight years, the same was barred by
limitation.
7. It was furthermore contended that the High Court
8
committed a serious error insofar as it failed to take into
consideration that the amendments to the Act subsequent to
the execution of the deeds of sale are not attracted to the facts
of the present case.
8. Mr. R. Sundaravaradan, learned senior counsel C
appearing on behalf of the respondents, on the other hand,
would contend that Section 198 of the Act being a special
provision, the period of limitation would start from the date of
knowledge of the authorities under the Act and not from the date
of registration of the documents. In any event, the proviso D
1
appended to Section 198(4) of the Act having provided for four
... years' limitation, the impugned judgment cannot be faulted.
9. The Act was enacted to consolidate and amend the law
relating to stamps. Stamp duty is payable on different types of E
instruments as prescribed by the State.
Section 198 of the Act was inserted by Tamil Nadu Act
"" 43 of 1992. It reads as under:
"198. Payment of duty on copies, counter parts or F
duplicates when that duty has not been paid on the principal
or original instrument
(1) Where any instrument is registered in any part of India
other than the State of Tamil Nadu and such instrument
relates, wholly or partly to any property situate in the State G
of Tamil Nadu, the copy of such instrument shall, when
received in the State of Tamil Nadu under the Registration
Act, 1908 (Central Act XVI of 1908), be liable to be
charged with the difference of duty as on the original
H
240 SUPREME COURT REPORTS [2009] 12 S.C.R.
A instrument.
'\1
(2) The difference of duty shall be calculated having regard
to--
(a) the extent of property situate in the State of Tamil Nadu;
B and
(b) the proportionate consideration or value or market
value of such extent of property.
-;-
(3) The party liable to pay duty on the original instrument
c shall upon the receipt of notice from the registering officer,
pay the difference in duty within the time allowed by such
registering officer.
(4) Where deficiency in duty paid is noticed from the copy
D of any instrument, the Collector may suo motu or on a
reference from any court or any registering officer, require
the production of the original instrument before him within "
the period specified by him for the purpose of satisfying
'
himself as to the adequacy of the duty paid thereon, and
E the instrument so produced before the Collector, shall be
deemed to have been produced or come before him in the
performance of his functions and the provisions of section
47-A shall mutatis mutandis apply: ~
Provided that no action under this sub-section shall
F
be taken after a period of four years from the date
of receipt of the copy of such instrument in the State
of Tamil Nadu under the Registration Act, 1908
(Central Act XVI of 1908.
G (5) In case the oriqinal instrument is not produced within
the period specified by the Collector, he may require the +
payment of deficit duty, if any, together with penalty under
section 40, on the copy of the instrument, within such time
as may be prescribed."
H
C.J. PAUL AND ORS. v. DISTRICT COLLECTOR AND 241
ORS. [S.8. SINHA, J.]
10. We may notice that the proviso appended to Section A
198(4) underwent an amendment insofar as in stead and place
of "from the date of registration of such instrument", the words
"from the date of receipt of the copy of such instrument in the
State of Tamil Nadu under the Registration Act, 1908" were
inserted. The said amendment came into force with effect from 8
22.02.2000 in terms of Tamil Nadu Act 39 of 1999.
11. Section 47A of the Act was inserted in the State of
,. Tamil Nadu 6y Act 24 of 1967. Indisputably, the period of
limitation was two years for initiation of a proceedings C
thereunder. However, Section 47A of the Act also underwent
an amendment by Tamil Nadu Act 1 of 2000 which came into
force with effect from 6.03.2000 whereby and whereunder the
period of limitation was extended to five years.
12. The liability to pay stamp duty arises on presentation D
) of a document. Indisputably, the registration office of the State
- of Kerala had the requisite jurisdiction to register the document
in terms of the provisions of the Registration Act.
13. The registration authorities of the State of Tamil Nadu E
came to know of the registration of the said documents on
30.03.1996 when they were filed before some authorities. In
terms of the provisions of the Act, the Collector alone would
.., initiate a proceeding for recovery of deficit stamp duty. The
proceeding was initiated on 5.05.1998 but the notices were
F
issued only on 7.06.1998.
14. The period of limitation so far as Section 47A of the
Act is concerned is two years. The limitation of period of four
years was provided for in terms of the proviso appended to
Section 198(4) of the Act but the statute which was applicable G
~ at the relevant point of time provided for invoking the period of
lir:nitation was four years from the date of registration.
15. Sections 47A and 198 of the Act provide for penalty.
A statute of limitation conferring jurisdiction upon the statutory H
242 SUPREME COURT REPORTS [2009] 12 S.C.R.
A authorities to impose penalty must, therefore, be construed
strictly. A penal statute, as is well-known, unless expressly
_.._
provided, cannot be given a retrospective effect. [See Ritesh
Agarwal and Another v. Securities and Exchange Board of
India (2008) 8 sec 205]
\
B \
16. The amendm1~nts carried out by the State of Tamil
Nadu in the Act must, therefore, be held to have a prospective
operation only. There cannot be any doubt whatsoever that
ordinarily in a case of this nature, the date of knowledge would
C be the starting point for computing the period of limitation. The
authorities of the State of Tamil Nadu came to know of the
execution of the deeds of sale dated 1.02.1990 only on
30.03.1996. They could have initiated a proceeding, if any,
within a period of two years from the sajd date as provided for
in Section 47A of the Act. However, in terms pf Section 198
D of the Act, the period of limitation provided was four yecirs from
the date of registration and not from the date of knowledge.
17. Submission of Mr. Sundaravaradan that the
subsequent amendment carried out by Act 1 of 2000 was only
-
E clarificatory in nature cannot be accepted. The State advisedly
used the words "four yE~ars" from the date of registration. Only
at a later stage, wisdom dawned on them that they may not be
able to find out the evasion of stamp duty within the
aforementioned period, amended the said provision so that the
period of limitation may start from the date of knowledge and
F not from the date of re~1istration. The said amendment is, thus,
also not retrospective in nature.
It is now well-settled that the Court cannot supply casus
omissus. [See Southern Petrochemical Industries Co. Ltd. v.
G Electricity Inspector & ETIO and Others (2007) 5 SCC 447]
18. For the reasons aforementioned, the impugned
judgment cannot be sustained which is set aside accordingly.
The appeal is allowed. No costs.
B.B.B. Appeal allowed.
H
Search Indian case law
Ask in plain English, not just keywords. 25,000 AI words free, no card.
Try "Indian Stamp Act"Sign in to search