Tribunal rules stamp duty not relevant in insolvency application; debtor can address separately.

The Tribunal dismissed the Misc. Application, emphasizing that the stamp duty issue is not pertinent in a Section 7 application when 'debt' and 'default' are established independently. The Corporate Debtor can address the stamp duty matter before the appropriate authority relying on the disputed documents as evidence. The judgment clarifies the timing and relevance of raising stamp duty concerns in insolvency proceedings, aligning with established legal principles and precedents.

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Issues Involved:
1. Difference of opinion between the Judicial Member and the Technical Member on impounding and payment of deficit stamp duty on two documents.
2. Whether a Corporate Debtor can raise pleas of deficit stamp duty in a Section 7 application.
3. When and before whom the issue of stamp duty should be raised.

Issue 1: Difference of Opinion on Stamp Duty:
The Tribunal referred the matter to a third Member due to a disagreement between the Judicial Member and the Technical Member regarding the impounding and payment of deficit stamp duty on the Debenture Trust Deed and Redeemable Non-Convertible Debenture Subscription Agreement. The Judicial Member partially allowed the application, directing impoundment and payment of stamp duty, while the Technical Member deferred the decision, seeking a majority opinion.

Issue 2: Corporate Debtor's Pleas on Stamp Duty:
The Corporate Debtor contended that the two documents in question cannot be relied upon until the deficit stamp duty is paid as per the Maharashtra Stamp Act. Both Members ordered initiation of Corporate Insolvency Resolution Process (CIRP) against the Debtor, agreeing that 'debt' and 'default' were established without relying on the disputed documents. However, the Judicial Member allowed impounding and payment of stamp duty, while the Technical Member did not express an opinion on this issue.

Issue 3: Timing and Authority to Raise Stamp Duty Issue:
The third Member analyzed relevant laws and previous judgments, concluding that the issue of stamp duty need not be addressed in a Section 7 application when 'debt' and 'default' are proven independently of the disputed documents. The Member emphasized that the Corporate Debtor could raise the stamp duty issue before the authority relying on the documents as evidence for enforcing their rights. The Member dismissed the application without delving into the stamp duty matter, deeming it irrelevant in the current context.

In conclusion, the Tribunal dismissed the Misc. Application, emphasizing that the stamp duty issue is not pertinent in a Section 7 application when 'debt' and 'default' are established independently. The Corporate Debtor can address the stamp duty matter before the appropriate authority relying on the disputed documents as evidence. The judgment clarifies the timing and relevance of raising stamp duty concerns in insolvency proceedings, aligning with established legal principles and precedents.

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