TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 446
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....ent No. 2, directing the appellant to pay Rs.4,61,760/- (Rupees Four Lakh Sixty-one Thousand Seven Hundred and Sixty) as deficient stamp duty under Article 40(b) of Schedule 1-B of the Stamp Act, together with penalty of Rs.100/- along with interest at the rate of 1.5% per month from the date of execution of the instrument till recovery. 3. On 18.12.2006, the Meerut Development Authority allowed the appellant to develop a colony known as "Global City, Abdullahpur, Meerut". On 19.12.2006, the appellant executed a "Security Bond cum Mortgage Deed" in favour of the Meerut Development Authority under Article 57 of Schedule 1-B of the Indian Stamp Act, 1899 to secure performance of all obligations relating to the development of the colony, including payment of external development charges and provision of requisite amenities. The appellant mortgaged specified plots of land under the deed, totalling 2,934.45 square meters. 4. The appellant transferred all their interest in the properties specified in the deed to the Meerut Development Authority, intending that they shall remain mortgaged. In case of default of liability, the Meerut Development Authority shall be entitled to sell th....
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....six Lakh) from the Allahabad Bank. To ensure re-payment of loan, he executed a "Security Bond or Mortgage Deed" placing immoveable property being plot No. 122-M measuring 0.202 hectares, situated in Village Jugauli Tappa Sirsia, Pargana Vinayakpur, Tehsil Nautanwa, District Maharajganj as security with the bank. The deed was executed on a stamp paper of Rs. 100/- in compliance with Article 57 of Schedule 1-B of the Indian Stamp Act, 1899. 10. The deed was presented before Sub-Registrar for registration on 04.12.1995 which was forwarded to the Deputy Collector (Stamp), with his report dated 06.01.1996, observing that the document was a mortgage deed, and chargeable under Article 40, Schedule 1-B of the Indian Stamp Act, thus, indicated a stamp deficit of Rs.1,37,500/- (Rupees One Lakh Thirty-seven Thousand and Five Hundred). The Deputy Collector (Stamp) vide order dated 10.04.1997, concurred with the Sub-Registrar's report and held that the deed in question was a simple mortgage deed chargeable with stamp duty at the rate of Rs.62.50 per thousand. Aggrieved thereto, appellant preferred Stamp Revision No.59/1997-98 but the same was dismissed. Assailing the orders dated 10.04.1997 ....
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....ischarge of liability. The stamp duty is being paid under Article 57 of the schedule I-B of the Indian Stamp Act, 1989, as amended in its application of Uttar Pradesh. THIS INDENTURE IS MADE at Meerut on the 19th day December 2006. BETWEEN Godwin Construction Pvt. Ltd. through Director Shri Jitender Bajwa R/o A-151, Defence Colony, Meerut hereinafter called SURETIES of the one part which expression shall, unless repugnant to the context or in consistent with the subject, include their heirs, executors and administrators etc. AND MEERUT DEVELOPMENT AUTHORITY, Vikas Bhawan, Meerut hereinafter called MDA of the other part, which expression, unless repugnant to the context or inconsistent with the subject shall include its interest assigns, transferees in interest etc. WHEREAS M/S Godwin Construction Pvt. Ltd., A-151, Defence Colony, Meerut hereinafter referred to as the COLONIZER is developing a colony, under the name and style of Global City, Abdullapur Meerut hereinafter referred to as colony and, WHEREAS MDA has agreed to approve the lay out plan of the colony and colony itself provided to Colonizer discharges all the liability to ....
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....therwise the same shall be and remain in full force. SCHEDULE REFERRED TO ABOVE All the land Global City, Abdullapur Meerut LIST FOR MORTGAGE PLOTS Plot No. Area (in sq. mts) 01 to 03 486.00 13 to 16 648.00 69 to 71 336.00 73 to 82 1464.45 Total _________ 2934.45 _________ IN WITNESS WHEREOF the above written surety Bond has signed these present at Meerut 19th day of December year 2006." 15. Having set out the operative clauses of the instrument executed by the appellant, it is evident that the instrument records that the appellant transferred all their interest in the properties detailed in the schedule to the Meerut Development Authority. The transfer was made with the intent that the same shall remain charged by way of mortgage to secure due performance of obligations in developing the colony and payment of external development charges. 16. The instrument further stipulates that, in the event of default, the Meerut Development Authority shall be entitled to sell the mortgaged properties to realize the amount. Having thus analysed the operative clauses and substance of the instrument, it is apposite to refer ....
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....dditional or substituted security, or by way of further assurance for the abovementioned purpose where the principal or primary security is duly stamped- for every sum secured not exceeding Rs.1,000 and for every Rs. 1,000 or part thereof secured in excess of Rs. 1,000. Exemptions (1) Instruments, executed by person taking advances under the Land Improvement Loans Act, 1883 (XIX of 1883), or the Agriculturists' Loan Act, 1884 (XII of 1884), or by their sureties as security for the repayment of such advances. (2) Letter of hypothecation accompanying a bill of exchange. *** 57. SECURITY-BOND OR MORTGAGE-DEED, executed by way of security for the due execution of an office, or to account for money or other property received by virtue thereof or executed by a surety to secure the due performance of a contract,- (a) when the amount secured does not exceed Rs. 1,000; (b) in any other case......" 19. It is contended on behalf of the appellant, that the deed falls within the ambit of Article 57 of Schedule 1-B of the Indian Stamp Act, 1899, on the footing that it partakes the character of a security bond. Hence, ....
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....roperties were not mortgaged by a third party, but by the principal debtor itself, which, in our opinion, does not attract Article 57. 26. In the absence of any surety, to attract Article 57 of the Indian Stamp Act, the deed executed by the appellant cannot be termed as a security bond. It, however, fulfils all the requirements of a mortgage deed, falling under the ambit of Article 40 of Schedule 1-B of the Indian Stamp Act. CIVIL APPEAL ARISING OUT OF SLP (C) NO. 36434/2014 27. In the Civil Appeal arising out S.L.P. (Civil) No. 36434/2014, as well, it is similarly observed that the instrument executed by the appellant in favour of the Allahabad Bank, carries the nomenclature "Security Bond or Mortgage Deed". This instrument created a mortgage over certain immoveable property at Village Jugauli Tappa Sirsia, Pargana Vinayakpur, Tehsil Nautanwa, District Maharajganj to secure the loan repayment of the business loan. A careful perusal of the operative provisions of the instrument clearly indicates that it confers a right over specified property to secure repayment. 28. This Court finds that the instrument satisfies the essential characteristics of a mortgage deed as defin....