THE BOMBAY STAMP ACT, 1958 - Igrmaharashtra.gov.in
THE BOMBAY STAMP ACT, 1958 - Igrmaharashtra.gov.in
THE BOMBAY STAMP ACT, 1958 - Igrmaharashtra.gov.in
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there<strong>in</strong> even an agreement of sale is dutiable under the Act under Schedule I Article 25,Explanation.[State of Maharashtra v. Mahavir Lalchand Rathod (1992 (2) Bom. C.R. I)]When a party contemplates purchase of an immovable property what happens is that thepurchaser enters <strong>in</strong>to Agreement to purchase the immovable property determ<strong>in</strong><strong>in</strong>g andreflect<strong>in</strong>g the essential terms of the purchase such as price, area, possession and stipulatesas to title, covenants and encumbrances attached to the property, payments schedule etc.F<strong>in</strong>ally a stage comes when the transaction goes through <strong>in</strong> terms of <strong>in</strong>terest, right andtitle of the seller gett<strong>in</strong>g ext<strong>in</strong>guished and gett<strong>in</strong>g <strong>in</strong>vested <strong>in</strong> the pyrchaser and it is thisstage that the party is considered to be convey<strong>in</strong>g property <strong>in</strong> terms of right, title and<strong>in</strong>terest <strong>in</strong> it and hence called <strong>in</strong> legal parlance called conveyance. Instruments thusconvey<strong>in</strong>g the right, title and <strong>in</strong>terest <strong>in</strong> immovable property called conveyance becomechargeable as conveyance and the value many times is determ<strong>in</strong>ed <strong>in</strong> terms of the valueof the right, title, <strong>in</strong>terest <strong>in</strong> the immovable property. Agreements thus are chargeable asAgreements and Conveyance <strong>in</strong> terms of value comparable to value of the property itconveys. This difference when blended Article br<strong>in</strong>gs <strong>in</strong> net such transaction.Explanation – Essential element <strong>in</strong> <strong>in</strong>strument mentioned <strong>in</strong> (i) to (iv) is as regards theproperty be<strong>in</strong>g transferred or vested <strong>in</strong> another person and the transfer is <strong>in</strong>ter vires.Testamentary transfers/ transmissions thus gets ruled out. Further when one co-owner’s<strong>in</strong>terest <strong>in</strong> immovable property is be<strong>in</strong>g transferred to another the <strong>in</strong>terest <strong>in</strong> theimmovable property of the other co-owner gets argumented and it is ord<strong>in</strong>arily at a value.This therefore must be the criteria to make it covered by the conveyance as it tantamountsto a sale to a co-owner. In partition however the <strong>in</strong>terest exist<strong>in</strong>g gets demarcated perhapsby metes and bounds and the process <strong>in</strong>volves only the conversion of nature of ownership<strong>in</strong> property from jo<strong>in</strong>t to sole and hence seems to be the reason to exclude the same asseen <strong>in</strong> the Explanation.