Consent decree as conveyance: transfer of immovable property by decree can attract stamp duty when it operates as a transfer instrument.

A consent decree transferring immovable property may be treated as a conveyance and instrument under the Bombay Stamp Act, 1958 where its contents show transfer of title, receipt of full consideration, delivery of possession, and an express stipulation that it shall operate as a conveyance. The Court applied a wide construction to the inclusive definitions in sections 2(g) and 2(1), holding that the judicial form of the decree does not exclude its stampable character when its real effect is an inter vivos transfer of rights. The 1985 amendment was treated as declaratory, and the earlier Full Bench ruling was distinguished on its facts; the decrees were held chargeable to stamp duty.

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Issues: Whether a consent decree by which immovable property is transferred and which states that it shall operate as a conveyance falls within the definitions of conveyance and instrument under the Bombay Stamp Act, 1958 and is chargeable to stamp duty.

Analysis: The definitions in sections 2(g) and 2(1) are inclusive and are to be given a wide construction. A decree is not excluded merely because it is a judicial form; its real character is to be gathered from its contents and legal effect. Where the consent decree records transfer of title, receipt of full consideration, delivery of possession, and expressly provides that it shall operate as a conveyance, it is the document by which rights are transferred inter vivos. The 1985 amendment was treated as declaratory and confirmatory of the pre-existing position, and the earlier Full Bench decision was distinguished on its facts.

Conclusion: The consent decrees were held to be conveyances and instruments chargeable to stamp duty under the Act, and the writ petitions were allowed to be reversed in favour of the State.

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