Court Allows Registration of Genuine Transactions Based on GPA, Rejects Circular Restriction

The court set aside a circular issued by the Divisional Commissioner, Govt. of NCT of Delhi, which directed Registrars/Sub-Registrars not to register conveyances based on GPA, Will, or Agreement to Sell. The court agreed with the petitioner that the circular misinterpreted the Supreme Court's judgment in "Suraj Lamp & Industries (P) Ltd. v. State of Haryana," allowing registration of genuine transactions based on GPA. Respondents' arguments of stamp duty evasion were dismissed, emphasizing the need to assess transaction genuineness during registration. The court directed issuance of speaking orders for unfit documents and disposed of the writ petition, permitting registration of genuine transactions based on GPA in line with the law and Supreme Court precedent.

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Issues:
Challenge to circular issued by Divisional Commissioner regarding registration of conveyance based on GPA, Will, or Agreement to Sell.

Analysis:
The petitioner sought a writ of certiorari to quash an allegedly illegal circular issued by the Divisional Commissioner, Govt. of NCT of Delhi, as violative of Fundamental Rights guaranteed under Article 14 and 19(1)(g) of the Constitution, citing the judgment of the Supreme Court in "Suraj Lamp & Industries (P) Ltd. v. State of Haryana." The petitioner entered into a collaboration agreement with the owner of an immovable property and obtained a General Power of Attorney (GPA) and a Will, which were duly registered. The circular in question directed Registrars/Sub-Registrars not to register conveyances based on GPA, Will, or Agreement to Sell. The petitioner argued that the circular misinterpreted the Supreme Court's observations in the Suraj Lamp case, which allowed registration of genuine transactions based on GPA. The court agreed with the petitioner, setting aside the circular as contrary to the Supreme Court's judgment.

The respondents contended that the transaction between the petitioner and the property owner aimed to evade stamp duty, justifying the resistance to register the document. They argued that the transaction should be treated as a sale subject to a higher stamp duty rate. The court noted that there was no order refusing registration and emphasized the need to examine the circular's validity. The court highlighted the Supreme Court's clarification that genuine transactions based on GPA are permissible for registration. The court found the circular's directions contrary to the Supreme Court's position and set it aside.

The court directed the respondents to assess the genuineness of transactions during registration and to issue speaking orders if they find any document not fit for registration. The writ petition was disposed of in light of these directions, allowing for genuine transactions based on GPA to be registered, in accordance with the law and the Supreme Court's judgment in the Suraj Lamp case.

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