ADJUDICATION OF MATTERS CONCERNING PAYMENT OF STAMP

ADJUDICATION means a decision which is rendered by a competent authority or a

judge on disputed or disagreed issues. It is often disputed or disagreed in the
matters of stamp duty payable by persons seeking registration of certain
instruments.

In spite of clear description of changeability of stamp duty under the various

Articles of the Karnataka Stamp Act, disagreements between executants and the
registering authority and also certain doubts do enter into the minds of person
wanting to register. In order to remove such disagreements or doubts, any person
is empowered under the provisions of the Karnataka Stamp Act 1957 to adjudicate
the issue or seek the opinion of the District Registrar/ Deputy Commissioner as to
proper stamp duty to avoid complications like, under-valuation and penalty at later
stage.

The Registering authority himself is also empowered under the Act to make a
reference to the Deputy Commissioner / District Registrar for determination of the
stamp duty on the property in case of disagreements or disputes arise where the
person is declined to pay the stamp duty set forth by him. As provided under the
Act, any instrument which is either executed or not and previously stamped or not
can be brought to the District Registrar / Deputy Commissioner to have his opinion
as to the Stamp Duty with which it is chargeable.

For doing so, the person should make an application with a fee of Rs.100 and also
furnish an abstract of the instrument and an affidavit or other evidence as would
support his claim on set forth value or such duty to be determined by the District
Registrar.

Admission
On receipt of such application along with fee, abstract of the instrument or other
evidences, the Deputy Commissioner/District Registrar having satisfied in all

respects, shall make his best judgment to determine the stamp duty to be payable
or decide that the duty claimed by the person suffices the correct description of
chargeability or else decide that the stamp duty already paid is equal to the duty so
determined by him or in his opinion, such instrument is not chargeable. After
satisfying the case, the Deputy Commissioner / District Registrar shall certify the
endorsement on such instrument accordingly and appropriately.It is also provided
that the District Registrar/Deputy Commissioner may also refuse to proceed in this
Adjudication, if the person does not fulfill the conditions stipulated therein.

The provision of the Act provides that no evidence furnished in pursuance of this
adjudication shall be used in any civil proceedings against any person except in any
enquiry relating chargeability of stamp duty. Further, every person by whom any
such evidence is furnished shall, on payment of the full stamp duty which is
commensurate with the chargeability of the instrument, be relieved of penalty for
his omission. Endorsement not empowered

However, the Deputy Commissioner/District Registrar is not empowered under the

provision of the Act to give endorsement on the instruments of the types hereunder
brought to him.

a) After expiration of one month from the date of its execution or first execution in
India.

b) Executed or first executed out of India and brought to him after expiration of
three months after it has been first received in the State of Karnataka.

c) Or any instruments chargeable with duty not exceeding fifteen paise or a

mortgage crop with a duty of twenty five paise when brought to him after the
execution there of, on paper not duly stamped.

Reference for decision

It is also provided under the Act that even the Deputy Commissioner / District
Registrar is enabled to refer his own decision in pursuance of this adjudication, in
case of his doubt about the chargeability of stamp duty, to the Chief Controlling
Revenue Authority who will also give his decision therein. More so, the Chief
Controlling Revenue Authority, is also empowered suo moto within five years from
the date of order passed by the Deputy Commissioner/ District register, to call for
and examine the records relating to such order passed by Deputy Commissioner /
Registrar after examining records and hearing the parties, pass an order in writing
confirming, modifying or setting aside such order and direct the Deputy
Commissioner / District Registrar. Again, the Chief Controlling Revenue Authority
can

refer

its

opinion

to

the

High

Court

of

Karnataka

for

decision.

Generally, the Sub-Registrar is under duty and obligations to accept the

instruments for registration after observing all formalities. In cases where the
registering authority is deemed to have set forth the stamp value which, according
to the person wanting to register, is more. The person aggrieved can definitely
approach the Deputy Commissioner/District Registrar, with application, fee and
other documents, for appropriate relief.