Stamp duty — Stamp duty is payable as per market value of property at time of submission of sale deed for registration — Stamp Act, 1899.

[Iqbal Kaur v. State of Punjab & Ors., AIR 2010
Punjab & Haryana 130]

On 5-5-1970, an agreement to sell was executed for a sum of
`80,000 for
land. The agreement was renewed on 20-11-1995. However, when the vendor failed
to perform his part of the agreement by executing sale deed in favour of the
petitioner, the petitioner filed a suit for specific performance in the Civil
Court, which was decreed on 3-12-2001. For the execution of the decree passed
by the Civil Court, dated 3-12-2001, the sale deed was registered on
5-11-2008. The Collector exercising the powers u/s.47-A of the Indian Stamp
Act determined the market value of the property subject-matter of the sale
deed at the time of registration of the instrument. Order of the Collector was
confirmed by the Commissioner vide order dated 28-1-2009. A writ petition was
filed challenging the above order, which was dismissed.

On further appeal, the Court held that stamp duty is
payable at the time of submission of the sale deed for registration. The sale
deed was produced for registration on 5-11-2008, therefore, stamp duty on the
market value as on 5-11-2008 is payable. Agreement to sell has no relevance in
the matter of payment of stamp duty. The appeal was dismissed.