Reduced stamp duty for layout gift deeds must be applied before demanding higher duty or withholding registration.

A Government Order issued under section 9(1)(a) of the Indian Stamp Act, 1899 reduced stamp duty on gift deeds executed by layout owners handing over layout roads to local authorities to a nominal sum. In that context, insisting on full stamp duty and retaining the deed without registration was not in accordance with law because the authority had to consider the scope of the concession and act on the owner's representation. The demand for higher duty was therefore unsustainable, and the matter had to be reconsidered in light of the Government Order, with a fresh order on the representation to be passed within two weeks.

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Issues: Whether the respondent was justified in insisting on full stamp duty and retaining the gift deed without registration notwithstanding the Government Order reducing the duty on gift deeds executed by layout owners in favour of local bodies.

Analysis: The Government Order was issued in exercise of the power under section 9(1)(a) of the Indian Stamp Act, 1899 and expressly reduced the stamp duty chargeable on gift deeds executed by layout owners handing over layout roads to the relevant local authorities to a nominal value of Rs.100. On that basis, the insistence on payment of a higher stamp duty and the detention of the document without registration were not in accordance with law. The authority was therefore required to consider the scope and purport of the Government Order and act on the petitioner's representation.

Conclusion: The demand for full stamp duty was unsustainable, and the respondent was directed to reconsider the matter in light of the Government Order and pass orders on the representation within two weeks.

Final Conclusion: The petitioner obtained a direction for reconsideration of the document and the applicable stamp duty treatment under the Government Order, but not an immediate registration order.

Ratio Decidendi: Where a Government Order validly reduces stamp duty for a specified class of gift deeds under section 9(1)(a) of the Indian Stamp Act, the registering authority cannot insist on higher duty or retain the document contrary to that concession without considering the order's applicability.

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