Restitution of stamp duty follows cancellation of a court-monitored sale when the payer is not at fault.

A court-monitored sale that failed because possession was never delivered, and was later cancelled, entitled the purchasers to restitution of the stamp duty paid for the sale deeds. As the applicants had paid the full consideration and stamp duty without fault, the stamp papers became unutilised for the intended transaction and the right to refund arose only upon cancellation. The claim was treated as falling within the statutory refund framework, and limitation did not defeat the substantive right because the refund cause of action accrued on cancellation. The applicants were therefore entitled to refund of the entire stamp duty.

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Issues: Whether the applicants were entitled to refund of the stamp duty paid for execution of the sale deeds, notwithstanding rejection of their applications on limitation.

Analysis: The sale transaction, which had been conducted under court supervision, failed because possession of the properties was not delivered and the sale was ultimately cancelled. The applicants had already paid the full sale consideration and the stamp duty, and had acted throughout without fault. Once the transaction was cancelled by the Court, the stamp papers became unutilised for the intended purpose and the applicants acquired a right to seek restoration of the amount paid. The claim was also held to fall within the statutory framework governing refund of stamp duty, and the applications were treated as having been filed within time from the date on which the right to refund arose. Independently, the expiry of limitation was held not to defeat the underlying right to restitution in the facts of the case.

Conclusion: The applicants were entitled to refund of the entire stamp duty, and the State was directed to refund the amount.

Ratio Decidendi: Where a court-monitored transaction fails and is cancelled for reasons beyond the payer's fault, the payer is entitled to restitution of stamp duty on equitable and statutory grounds, and limitation does not defeat the substantive right where the right to refund arises only upon cancellation.

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