Co-owner sale — Release of share by co-owner to other co-sharer did not amount to sale or conveyance — S. 2(10) Stamp Act 1899.

The collector passed an order u/s.47-A of the Indian Stamp
Act by which he had imposed stamp duty on the respondents by coming to the
conclusion but the release deed dated 7-6-2002 was not a release deed but was
a conveyance within the meaning of S. 2(10) and stamp duty was attracted on
it. The court held that Release deed made by two co-sharers to other
co-sharers who had existing right in the property and it was simply an
extension of their existing share and no stranger had been admitted to the
property. Therefore it did not amount to a transfer of the property at all and
the release deed would be covered by the Full Bench decision of this Court in
the case of Balwant Kaur v. State reported in AIR 1984 Allahabad 107.

 

The co-owners in this case had transferred their shares to
other co-sharers who had pre-existing right in the property. It did not amount
to any transfer, rather it only amounted to an extension of their existing
share. Since there was no transfer to any outsider, it would not amount to a
sale or conveyance within the meaning of S. 2(10) even if the explanation is
taken into account.

[ State of UP v. Dharam Pal & Anr., AIR 2009 (NOC)
1372 (All.)]