1 THE MAHARASHTRA STAMP ACT, 1958 [as amended by the Maharashtra Stamp (Amendment) Act, 2015 ] the relevant portions of the Maharashtra Stamp Act, 1958 are aiscussed in this Chapter under the following nine heads A B. c -Era™mo Constitutional provisions, objects and summary of the Act Definitions Payment of stamp duty : How stamp duty is to be paid : Time limits for stamping instruments ‘Adjudication of stamp duty impounding of instruments ‘Admissibility of instruments which are not duly stamped instruments which are not properly stamped by accident Prosecution for stamp law offences: Allowances for stamps that are spoilt, misused or not required for use. A. CONSTITUTIONAL PROVISIONS, OBJECTS AND SUMMARY OF THE ACT (The Maharashtra Stamp Act (formerly known as the Bombay Stamp Act) was passed to consolidate and amend the law relating to stamp duty in Maharashtra and applies to the whole of Maharashtra. The Act has been amended several times, the most recent amendment being that in 2015) A thorough understanding of the stamp laws is crucial in determining the commercial viability of most corporate and real estate transactions, Constitutional provisions In India, the law relating to stamp duty is contained in two sets of enactments, namely, the Indian Stamp Act, which applies to the whole of India and the Stamp Acts passed by various states, as for instance, the Bombay stamp Act, {now called the Maharashtra Stamp Act), which is applicable only to Maharashtra.LAND Laws 1 none case, the any Stamp Act is to s become a Weapon o jeet Lai v. Hah py ters whereon state legislatures are empowered to legislate: ‘Now, Entry chiranié ‘ate legislatures $1 of List| gives power to Parliament to make laws relating to stamps and The a re stamp duties with reference to ten documents specified therein, as for actual market value instance, bils of exchange, promissory notes, cheques, bills of Jading, transactions. Keepi {Rsurance pois, ete. On the other hand, state legislatures have the powe, propositions emerge (under List il) to enact laws relating to stamps and stamp duties on all 1, The Actis. other documents. certain cla The picture that emerges from the above is that in the matter often 2. Stamp dut documents specified in Entry 91 of List |, only Parliament can prescribe upon the t ‘RErTates‘of stamp duty, whereas for all other documents (as for instance, For charg affidavits, powers of attorney, mortgage deeds, indemnity bonds, etc), ehenames State enactments of a particular state (for example, the Maharashtra of the tran Stamp Act in Maharashtra) prescribe the stamp duty. b ie ae It Is not i {The ten documents falling under List | are enumerated in the oneea definition of “instrument”, considered later in this Chapter.) duty. Objects of the Act 8. Aninstrum The Preamble to the Act clarifies that itis “expedient to consolidate as kis wor and amend the law relating to stamp and rates of stamp duties, other 6. ifaninstrur than those in respect of documents specified in entry 91 of List tin the or is insuffi Seventh Schedule to the Constitution of India, in the State of Bombay.” between th Zhe object of the Act isto collect proper stamp duty, in order to Secure revenue forthe tate, on instruments on which such duty ispayable, SUM of the Act always keeping in mind that stamp duty is payable on an instrument, and, Whilst S. 2 of the of on the transaction reflected in the instrument. Therefore, wt charging section of t transaction involving the sale ofa flat, stamp duty is Payable on the Sale <°"*@in instruments, SS. 4 to 9 deal w € of the property and not on the value When Several instrum an obligation is cast on the authorities tt Ne instrument relate Properly ascertain the true value of the Property, and not rely on thé P'escribe the Mode of SPParent tenor of the instrument. (Ramesh Bansal v. Collector, Ghaziabad 17 to 19 dea, With th AIR 1999 Sc 2126) | Stamped. s.non Cons, THE MAHARASHTRA STAMP ACT, 1958 Central ang sto" (inane cae, the Supreme Court \e matters nu Statg__ none caste Supreme Court bservedtha although the objec ereos List hich any stamp secure revenue forthe State It connot be allowed to artasettLgontang become 8 weapon of echricalty to meet the ese ofan opponent. (+ low, Ener, Chiranjeet Lav. Hah Das, AIR 2005 SC 2564)) 7 soy ified theres and The statutory requirement of paying stamp duty onthe basis ofthe ues, bis op cs Por actual market value has, to an extent, Kept a check on black money adi : ures have tne cine. ransactons Keeping the objects of the Act in mind, the following wer propositions emerge from various decided cases: stamp duties ° ramp duties on aj 1. [The Act isa fiscal measure to secure revenue for the State from certain classes of instruments. 5 in the matter nent can peettet 2 Stamp dutyis imposed by the Act upon the instrument and not nts (aso upon the transaction, ats stance, mity bonds, etey, 3 Forchargng stamp duty, the instrument isnot tobe treated by , the Maharashte the name which it bears, but by the substance or the real nature > of the transaction recorded therein. numerated in the. tS not illegal to adopt a particular method of effecting a ater] transaction, which may lessen or reduce the liability of stamp duty. 5. Aninstrument or a document should be read ast exists, that is, ‘ent to consolidate as it is worded or drafted by the parties. ‘amp duties, othe © faninstrument whichis required tobe stampedis not stamped 91 of List | in the or is insufficiently stamped, itis not, for that reason, invalid as ate of Bombay.” between the parties thereto, duty, in order t° Summary of the Act ble, ich duty is. oof Whilst S. 2 of the Act defines various terms used in the Act, S. 3 is the in instrumen' "i; Charging section of the Act and it provides for charging stamp duties on _ Therefore, '9F conan instruments, the actual rates of stamp duty being set out in I ayable on the S®¥ schedule | to the Act. ; weve : r se. HOWEVEY 55. 4 to 9 deal with liability to pay stamp duty in specific cases; as payable 0” 9 © when several instruments are executed for a single transaction or where { not on the YP one instrument relates to several distinct matters. Ss. 10 to 16 of the Act the authoritl’s | orescribe the mode of using stamps and how stamp duty isto be paid. d not rel¥ "17 to 19 deal with the time period within which instruments are to be lector, G2t1®™ stamped, $s, 20 to 29 explain how valuations are to be made for the purpose of ascertaining stamp duty and S. 30 clarifies which party tothe instrument is liable to pay the stamp duty6 LAND LAWS unt of stamp duty payable is taken 33 to 46 of the Act lay down the 1p duty and the impounding Adjudication as to the proper amot care of by Ss. 31 to 32-C, whereas Ss. snsequences of non-payment of proper stam sfimstrament which are not propery stamped: Ss. 47 0 52-8 then make provisions for allowances for stampsin certain cases, a5 for instance, when the stamp on a document is inadvertently spoiled or obliterated. The rest of the Act contains provisions for offences under the Act, for reference, revision and appeal and other supplementary matters. S. 74 of the Act expressly declares that the provisions of the Act do not apply to documents specified in List | of Schedule VII of the Constitution of India. The actual rates of stamp duty for various documents are contained in Schedule | of the Act and these rates are amended from time to time. Only the most important provisions of the Maharashtra Stamp Act are dealt with in this Chapter. For other provisions, a reference may be made to the text of the Maharashtra Stamp Act. B. DEFINITIONS S. 2 of the Act contains definitions of several terms used in the Act, These definitions apply unless there is anything repugnant in the subject ‘or context. Some important definitions are considered below. For othet definitions, a reference may be made to the Appendix to this book. Additional Controller of Stamps, Mumbai [S. 2(aa)] “Additional Controller of Stamps, Mumbai” is defined to mean the officer or officers so designated by the State Government, including any other officer whom the State Government may, by notification in the Official Gazette, appoint in this behalf. [This definition was inserted by the Maharashtra Stamp (Amendment Act, 2015.) Bond (8. 2(c}] The word “bond” is defined to include: (2) any instrument by which a person obliges himself to pay mone} to another, on condition that the obligation shall be void ifé specified act is performed or is not performed, as the case ma) be; ‘THE MAHA (b) any instrument at or bearer, wheret another; and (c)_ anyinstrument at himself to deliver there is a difference difference is significant for distinguishing between ab jn the event of a breach, tr pay money to the ether, instrument; in the case of the court. Chargeable [S. 2(d)] When applied to an i commencement of the A under the said Act. It refe Act, subject to the provis this Chapter. In the cas chargeable under the law or, where several person: The charging event | executed in Maharashtra outside Maharashtra, thi the state. Thus, the date it being charged to stam charged. Under the Act, the (a) if itis execute (b) ifitis execute in Maharashtr (©) when several the first such j a [A reference may | 'arging section of the Jf stamp duty payable is taken, 46 of the Act lay down the mp duty and the impounding. ed. $s. 47 to 52-B then make 1 cases, as for instance, when led or obliterated. The rest nder the Act, for reference, ry matters. S. 74 of the Act + do not apply to documents ‘tution of India. The actual 2 contained in Schedule | of ne to time. ne Maharashtra Stamp Act ions, a reference may be ct. eral terms used in the Act. repugnant in the subject nsidered below. For other ppendix to this book i i" is defined to mean the jovernment, including any ay, by notification in the shtra Stamp (Amendment) ges himself to pay money igation shall be void if @ formed, as the case may er Charging section of the Act.] ‘THE MAHARASHTRA STAMP ACT, 1958 roe tes (b) any instrument witness and not payable another; and Pay money to «)_ any instrument attested by a witness, 4 (0 Sinseltodelvergrainorcther apreutursiprodeerennee, there is a difference between a bond and a contract, and ths aesence i significant f07 te purposes ofthe Ack. The general test for Sitingushing between a bond and a contracts that inthe case ofa bond, inthe event ofa breach, the party tothe instrument who was obliged to say money to the other, is liable to pay the sum stipulated in the Fatruent;n the case of @ Contract, the quantum of damages sed by_ thecourt. Chargeable [S. 2(4)] \When applied to an instrument executed or first executed after the ‘commencement of the Act, the word “chargeable” means chargeable under the said Act. It refers to all instruments listed in Schedule | to the ‘Act, subject to the provisions of Section 3 of the Act, discussed later in this Chapter. In the case of any other instrument, the word means chargeable under the law in force when such an instrument was executed or, where several persons have executed it, when it was first executed. The charging event for the purpose of stamp duty of an instrument Explain the | term executed in Maharashtrais ts execution. incase of aninstrumentexecuted an "tas stump Ace ‘outside Maharashtra, the charging event is bringing the document into mans) thestate, Thus, the date of execution of an instrument is very relevant for MU. Now. 2030 it being charged to stamp duty and also for the rate at which itis to be a charged, teas ee 208 Under the Act, the chargeability of an instrument starts - (a) ifitis executed in Maharashtra - atthe time of its execution; (b) ifitis executed outside Maharashtra - on the date ofits receipt in Maharashtra; and (©) when several persons execute a document - on the date when the first such person signs it in Maharashtra.) J ich is the UA reference may be made to S. 3 (discussed later), whi8 LAND LAWS: Collector [S. 2(f] The word “Collector”, as used in the Act, means the chief officer in charge of the revenue administration of a district, including any officer whom the State Government may appoint for this purpose by a notification inthe Official Gazette and on whom any or all powers of the Collector are conferred by the same or any other notification, Under the Act, the Collector's authorised to exercise several powers, such as adjudication for payment of proper stamp duty, certifying instruments, impounding instruments and stamping instruments which are impounded. Conveyance [S. 2(g)] The word “conveyance” includes: (2) a conveyance on sale, (b) every instrument, (c) every decree or final order of a civil court, (d) every order passed by a High Court under S, 394 of the ‘Companies Act, 1956; and {e) every order made by the Reserve Bank of India under S. 44-A of the Banking Regulation Act, — by which property, whether movable or immovable, or any estate or interest in such property, is transferred to or vested in any other person inter vivos and whichis not otherwise specifically provided for by Schedule lof the Act. [The reference to an order passed by a High Court under S, 394 of | the Companies Act, 1956, is now to be read as an order passed by the Company Law Tribunal under S, 323 of the Companies Act, 2013.) It is clarified that any instrument under which a co-owner of any Property transfers his interest to another co-owner of the same property, and which is not a partition instrument, shall be deemed to be an instrument by which property is transferred inter vivos, An actual transfer of property is necessary to regard the document, as a conveyance. If it merely recites a past accomplished fact of transfeh itis mot aconveyance. Similarly, a mere agreement to convey the propert) in the future is nota conveyance. In order to determine the true charactef of a document, the whole document has to be looked at, and not merely) parts thereof THE In one case, the term “conveyance” st this definition is very Maharashtra, 1294 (: Duly Stamped [S. 2(h} ‘The expression’ that the instrument than the proper amo gecordance with the ‘A document wil - in cases wt duly cance = in-cases paper - w complied [The mode Chapter] Executed / Execution The words “ex to instruments, mez terms also include th Information Techno! Immovable property The term “imm benefits to arise ¢ Permanently fasten: Movable property [s “Movable prog 8Fss, fruit upon and except immovable p 'mpressed Stamp [S (An impressed s On the top of the she a epateassec saner er eereecrarammemeeanel erect, means the chief o THE MANARASHTRA STAMP ACT, 1958 In one case, the Supreme Co - i urt observed thatthe definition of the istrict including any eqgr® term “conveyance” stats withthe expression “incades"whlch shew tee thispurposebyanounesictt ths definition i very wide (Ruby Soles and Servces [Pedr Se of powersofthe Clleciarion Maharashtra, 3984 1) SCC 523) tion. 7 Ato exerci several power, per stam cuty, cern taming instruments ot court, ourt under S. 394 of the ankofindia under S. 44-A of movable, or any estate or ‘vested in any other person, ily Provided for by Schedule High Court under s. 394 of 85 an order passed by the ompanies Act, 2013 ] * which a'o-owner of any ner ofthe same me property shall be deeme nervigg 2 Be 2° > to regard the d 1 tad the document lishe fact of trancon, nent tO convey the prone etermine thetruegh acter Ct looked. a eked atm ‘Duly Stamped [S. 2(h)] (The expression “duly stamped”, as applied to an instrument, means that the instrument bears an adhesive or impressed stamp of not less than the proper amount and that such stamp has been afned or sed in accordance withthe law in force in Maharashtra, ‘A document willbe treated as being “duly stamped” - ~ ncases where it bears an adhesive stamp -when such stampis duly cancelled; and in cases where the document is drawn on impressed stamp paper - when the provisions of $s. 13 and 14 ofthe Aet are ‘complied with) [The mode of “cancellation” ofa stamp i discussed later in this Chapter] Executed / Execution [S. 2(i] (The words “executed” and “execution”, when used with reference to instruments, mean “signed” and “signature” respectively. These two terms also include the attribution of electronic records under S. 11 of the Information Technology Act, 2000, Immovable property [S. 2 (jal] The term “immovable property”, as used in the Act, includes land, benefits to arise out of land and things attached to the earth or permanently fastened to anything that is attached to the earth. Movable property [S. 2 (pal] “Movable property” includes standing timber, growing crops and &rass, fruit upon and juice in trees and property of every other description, xcept immovable property. ‘Impressed Stamp [S. 2(k)] (Animpressed stamp paper is one where the stamps printed directly (nthe top of the sheet of paper!|n the U.K,, in the olden days, the stamp ates uty taped Insramane"? (2 aa) MU. Ape 2031 oe 2022 plain the terms Alon” with raerence to Instrumens. (2 mai] MU. Ape 201, Write» short note on Impressed stamp MAU, Nov. 2010 pe 2012 ov. 2015Define sed stamp" under the Maharashera Stamp Act. (2 marks) M.U. Apr. 2016 Now. 2018 10 LAND LAWS was “impressed” on documents when stamp duty was introduced in England by the 1694 Stamp Act. The use of such stamps in the U.K. was so successful that the same model was adopted in the rest of the British Empire, including India. The expression “impressed stamp” includes - (a) labels affixed and impressed by the proper officer; (b) stamps which are embossed or engraved on stamp paper; (c)_ impression by franking machines; and (a) impression by any such machine as the State Government may ‘specify by a notification in the Official Gazette. The definition of the expression “impressed stamp” was amended in 1994 by adding clauses (c) and (d) to keep pace with improved technology relating to stamping machines. Following the above definition, it has been held that the words “impressed stamp” would include non-judicial and hundi stamp papers, as well as special adhesive stamps which are affixed and impressed by a proper officer. It is also to be noted that every impressed stamp paper must be | bought in the name of one of the parties and this name must appear on the paper, along with the date of purchase (as it must be used within six | ‘months from such date). | When a document is written on an impressed. stamp, the writing can appear on the face and the reverse of such a sheet. When two or more stamp papers are used, the instrument should be spread out on each such sheet. Alternately, if a stamped paper sheet does not bear any part of the instrument (as in the case of an instrument running only into a few lines), one of the executants should sign such a stamped sheet with an endorsement indicating that the instrument has been written on the other stamp Paper. On the other hand, if the stamp papers are not sufficient to incorporate the entire document, plain paper may be used (as subsequent Pages) to complete the instrument. (S. 13) However, only one instrument chargeable to duty can be written on ‘one stamp paper and a second instrument chargeable to duty cannot be written on the same paper. (S. 14) Instrument [S. 2(1 ‘The word “ir or liability is, OF P extinguished oF r Info! mation Tech The term do Baro oo oO bill of cheque promis bill of letter insura transf deben proxy, receip The reasor scope of the wor duty on these d A documer extinguish or re or a document category it falls In one cas! term “instrume the definition Maharashtra, 1 Going by “instruments” j + ana + acon + ano Com + awn oral nex aucune CopORES ERASERS eae cree con Skduty was introduced in tamps in the U.K. was so 1 the rest of the British per officer; sd on stamp paper; state Government may azette. tamp” was amended in p improved technology | held that the words { hundi stamp papers, sd and impressed by a stamp paper must be name must appear on ust be used within six tamp, the writing can t. When two or more read out on each such t bear any part of the only into a few lines), ped sheet with an 1 written on the other $ are not sufficient to used (as subsequent ity can be written on le to duty cannot be THE MAHARASHTRA STAMP Acr, 1958 ry instrument [S21] The word “instrument” includes every docum pility is, oF purports to be, rent by which any right i create as rape ceed ere ig tne formation Technology Act, 2000. core nthe ‘The term does not, however, include the folowing, bill of exchange a cheque promissory note bill of lading letter of credit insurance policy transfer of shares debenture proxy, and receipt. ‘The reason why the above documents have been kept out of the scopé of the word “instrument” under the Bombay Stamp Actis that stamp duty on these documents is governed by the Indian Stamp Act, 1888. namely, — ESE te eo 44 Adocument or writing which does not create, transfer, limit, extend, extinguish or record a right or liability is not an instrument. Once a writing ‘or 2 document is deemed to be an instrument, it must be seen in what category it falls and what stamp duty it attracts. In one case, the Supreme Court observed that the definition of the term “instrument” starts with the expression “includes” which shows that the definition is very wide. (Ruby Sales and Services (P) Ltd. v. State of Maharashtra, 1994 (1) SCC 531) Going by the above definition, the following have been held to be “instruments” for the purpose of the Act, namely, — + an award of an arbitral tribunal; + aconsent decree; + an order approving a Scheme of Amalgamation under the Companies Act; ferms and conditions of a” + awritten agreement recording the t oral agreement.2 LAND LAWS: Even when a document falls within the definition of an “instrument” under this Act, the liability t 10 pay stamp duty under the Act is only on instruments chargeable under Section 3. It may be noted that in order to ascertain the proper stamp duty Payable under the Act, the real and true meaning of an instrument is to be considered, and the description given in the instrument itself is immaterial, even though the parties believe that its effect and operation was to create a particular kind of instrument under the Act. (Madras Refineries Ltd. v. Chief Control ‘Market Value [S. 2(na)] ling Revenue Authority) ‘What is “market value” (The expression “market value”, in relation to any property which is Paani the subject-matter of an instrument, means the price which such property Mu. Nox 2011 would have fetched ifsold in the open market on the date of the execution Now 2017 of the instrument or the consideration stated in the instrument, whichever sane 2019 high June 2019 is higher} The concept of “market value” was introduce the Act by the 1979 Amendment. Prior thereto, stamp duty was chargeable on the amount fxolintnetem’manter ™entioned in an instrument, which left the doors open to fraud, leading vahwe"underthebonber tO an erosion of revenue receipts. It had become a common practice to Stamp Act. (2-marka) “4862013 stamp duty. Needless to state, state an undervalued price in an instrument, to avoid payment of proper the introduction of this concept in order to fix the correct value of property covered by a stamped instrument has resulted in @ manifold increase in the collection of stamp duty in Maharashtra, The market price of a pie the basis of what a hypothetical purchaser who is wi land in the open market and would offer for the land at several cases, as for instance, CI AI R1988 SC 1653 and Shama/ In one case, the Supreme Court h: of the property to a posh colon its market value, (Prakashwati 1996 (6) SC 190) Ce of property is thus to be determined on ig to purchase the who is willing to pay a reasonable price, that time. The important criterion for market 'aid down by the Supreme Court in ‘himanial v. Special Land Acquisition Officer, Bal v. Additional LAO, AIR 1977 SC 899. 'as Observed that the close proximity 'y Is not a factor that goes into determining ¥. Chief Controlling Revenue Authority, JT Inacase! had valued th much below t the revenue a the market va This was cha valuation at 3 % 20 psm. WI that the lowe and without with in such remanding t (Collector of In order property for formulated | Property) Ru Marketable : A“mar capable of t whether suc isa market | ina stock m Mortgage d A“mo Purpose of or an exist Person tran or in respe Paper (S. 2 The w Parchment Power of A A “po. a fee underdefinition of an “instrument” uty under the Act is only on ‘tain the proper stamp duty ning of an instrument is to in the instrument itself is that its effect and operation ent under the Act. (Madras thority) jon to any property which is re price which such property on the date of the execution nthe instrument, whichever Juced in the Act by the 1979 chargeable on the amount oors open to fraud, leading sme a common practice to o avoid payment of proper n of this concept in order to a stamped instrument has lection of stamp duty in ‘thus to be determined on >is willing to purchase the 0 pay a reasonable price, important criterion for evailing in the locality as ctions of properties in the sertaining the fair market n by the Supreme Court in 1 Land Acquisition Officer, LAO, AIR 1977 SC 899. -d that the close proximity nat goes into determining ing Revenue Authority, JT THE MAHARASHTRA stamp act, 1958 7 Ina case before the Bombay High Cour ea valued the and at & 9 psm coon e na re tothe transection the revenue authorities. The Collector then valued t as? 100een berg {aluation at € 100 was without proper justification and fixed the rate at £ 20 psm. When the matter came in appeal tothe High Cour, twas held that the lower court had fixed the value at & 20 psm by way of guesswork andwithout any basis. The matter of government revenue cannot be dealt wath in such a casual manner, it observed, setting aide the valuation and femanding the matter to the lower court for a proper assessment. {collector of Goa v. Vinodini Josh, 2006 (3) AIR Bom 337) In order to facilitate the determination of the true market value of property for the purposes of stamp duty, the State Government has also formulated the Bombay Stamp Act (Determination of Market Value of Property) Rules, 1995. Marketable security [S. 2(0)] {a “marketable security” means a security of such description as is capable of being sold in any stock market in India. Thus, the test is not whether such a security is quoted on a stock exchange or whether there isamarket for the same. Ifthe security is capable of being bought or sold ina stock market, itis a marketable security for the purposes of the Act. Mortgage deed [S. 2(p)] A “mortgage deed” includes every instrument whereby, for the purpose of securing money advanced, or to be advanced, by way of loan or an existing or future debt or the performance of an engagement, one person transfers or creates, to or in favour of another person, aright over or in respect of specified property. Paper [S. 2(q)] The word “paper” is broadly defi Parchment or any other material on whi ined in the Act to include vellum, ich an instrument may be written. Power of Attorney [S. 2(r)] A“power of attorney” includes an) fee under the law relating to court fees, argeable with yy instrument, not chi cified person ‘empowering a spe What i a “marketable security” under the Bombay tame Act” (2 mans) Muu, Ape 2010“ LAND LAWS: ye term also includes toactforandinthename of the person executing. The term alo incades an instrument by which 9 person, not being 2 lege practioner is authorised to appear on behalf of any party in any p" court, tribunal or authority. (S. 2 i in writing, of movable or immovable property, made i (a) in consideration of marriage; or (b) for the purpose of distributing the property of the: settor among his family or those for whom he desires to provide or for the purpose of providing for some person dependent on him; or (0) for any religious or charitable purpose. The term also includes an agreement in writing to make such a disposition. n cases where such a disposition is not made in writing, the term includes any instrument recording the terms of such a disposition, whether by way of declaration of a trust or otherwise. PAYMENT OF STAMP DUTY : HOW STAMP DUTY IS TO BE PAID : TIME LIMITS FOR STAMPING INSTRUMENTS Payment of Stamp Duty = elt shor note on 5.3 of the Act, whichis the charging section, provides that, subject to tomiaystenpace’ "the other provisions ofthe Act and the exemptions mentioned in Schedule MU. Apr.2010 | of the Act, all instruments listed in the said Sche dule are chargeable with stamp duty mentioned in the Schedule if - (2) such an instrumentis executed in the State of Maharashtra a ‘Act; and {that is signed) for the first time fter the commencement of the : (b) an instrument listed in Schedule | is executed for the first time outside Maharashtra after the commencement of the Act, Provided it relates to any property situate in Maharashtra orto any matter or thing done or to be done in the said State and is received in Maharashtra, Its clarified that in cases where the proper stamp duty has not been Paid on the original instrument, if stamp duty is sought to be paid on a copy or extract of the instrument, whether itis or is not a certified copy id whether orn anerument, Such | inst Sched indicated in However, no (a) anyinst govern governi on that to bear (b)anyins absolut vessel, or ves 1938 0 if, in the ci agreement, sever the principal inst instruments exe with a stamp dut decide which of deemed to be tl officer before wi is the principal i Asa logical also provided f instrument rela chargeable witt agreements, eac under the Act. | instruments car they are socom Qs if they had b contains an ind to be stamped However, Several distinct one considerati or transaction, :term also includes zal practitioner, is ceeding before any rentary disposition fthe settlor among provide or for the ident on him; or g to make such a ade in writing, the uch a disposition, UTY IS TO BE TRUMENTS es that, subject to joned in Schedule e chargeable with ) for the first time encement of the for the first time rent of the Act, aharashtra or to said State and is sty has not been to be paid on a a certified copy ‘THE MAHARASHTRA STAMP Act, 1958 1 nether not It 80 focsimile imoge or other C , such copy or extract Is ch wise of the original isn sega Lotthe Ack ane Mth the ful stomp duty vrowever, no stam duty i chargeable in respect of a) anyinstrument executed by or on (9 mvtnment in thse ates, where a for enpion te government would have been liable to pay the duty eae on that instrument or where the government has undertaken to bear the expenses of the stamp duty; and {)_ anyinstrument for the sale, transferor other disposition, either absolutely or by way of mortgage or otherwise, of any ship or vessel, or any part, interest, share or property of or in any ship or vessel registered under the Bombay Coasting Vessels Act, +1938 or the Merchant Shipping Act, 1958. if in the case of a sale, mortgage, settlement or development agreement, several instruments are used to complete the transaction, only the princial instrument is chargeable with the stamp duty, and the other instruments executed for ‘the same transaction are liable to be charged with a stamp duty of Z 100 only. In such cases, it is open to the parties to Uecide which of the instruments executed for that transaction is to be deemed to be the “principal instrument”. In case they fail to do so, the officer before whom the | instruments are presented may ‘determine which is the principal instrument for the purpose of the Act. (8.4) Asa logical consequence of what is stated above, the reverse case is also provided for and itis aid down (by S. 5 of the Act) that if one instrument relates to several distinct matters, such an instrument is chargeable with the aggregate amount of stamp duties which separate agreements, each relating to one such matter, would have been chargeable under the Act. In other words, what the Act provides is that two oF more imtraments cannot be combined into one to save stamp duty: Even i they are so combined, stamp duty would be levied on the total chargeable, 4s if they had been separate instruments. ‘Thus, if the same instrument contains an indemnity bond as well as a power of attorney, it would have tobe stamped with the aggregate of the stamp duties for both, s vlowever, §. comes into play oniy when one SEUSS for Several distinct matters. So, when several properties 2° rate ‘one consideration, the instrument can be said t© cover only on Feest or transaction. So also, where several persons have community’ "fe LAND LAWS e execution ofthe instrument itcannot ods, alettel in in the ina property and they all join i 5 or transactions. id that the instrument covers distinct matter: a a power of attorney was executed by thirteen Persons, that it cennet anage a piece of property jointly owned by stamp, his a ties separately owned by each of them. It ag for instane jowers: one for the joint property The true .en) properties. (Sodra Devi crectively seeing the st n instruments so framed that itcan comewithin so as tO pred Schedule |, it is liable to be charged that drawing uth the highest stamp duty applicable to any of such instruments. Thus, across tn fa ifthe same instrument can be construed as an acknowledgment and also ifapers 2s a power of attorney, stamp duty would be payable on the instrument be discontinued immediately Satine to carry on sua my ‘S liable to punishment ee or fine which ma} mctingaffence, a furthe ®Y during which the now Without aymenn aie tots rights tcreatean eeePMENt charges does not exoney ehtsin favou! oF does it inarrt®the buildet ro Moga cyeeularise "sh Konitkal IARASHTRA REGIONAL AND TOWN PLANNING ACT, 1966 a7 He Ma riod of fifteen days from the receipt of the order. If such an wi gat complied within the aid period of time the Planing Author rsa op the Distct Magistrate or the Commissioner of Pol 1 can uch works summarily removed or such use summary discontinued rast any further notice. Ifa question arises as to what cane termed wipment of a “temporary nature”, the decision of the Planning devponty is declared to be final in this regard, (S55) Ithas been held that 5.55 of the Act only requires anotice of fiteen days. t does not contemplate any hearing to be given to the affected pary. It is 2 provision which enables the Corporation to remove Par pore temporary development of and n asummary manner This sted to give it the character of a long-drawn provision cannot be interpret Prration proceeding. (Sachindra Koiten v. Municipal Corp. of Greater ‘Mumbai, 2013 (7) Bom CR, 2) within 2 Pet Power to require removal of authorised development or use “The above provisions relate to unautorised development. However, 5.56 ofthe Act deals with the powers of the Planning Authority to require removal of euthorised development or use, It provides that, i it appears fo the Planning Authority that itis expedient in the interest of proper planning, and having regard to the Development Plan, ~ (2). that any use of any land should be discontinued; or (b)_ that any conditions should be imposed on the use of any land or (c)_ that any buildings or works on the land should be altered or removed, - the Planning Authority may serve a notice on the owner - {a) requiring the discontinuance of such use, or (b) imposing specified conditions on the continuance of such use, or ( a specie are to be taken for the alteration or y buildings or land, as the case may be, - within the period prescribed in the notice, , not how! it ‘one month from the date of service of the notice. ealieataie eeLAND LAWS: Any person aggrieved by such a notice may, within the said periog one month, prefer an appeal tothe State Government, which may dsm, the appeal or allow the appeal and quash the notice or vary the notice, it may deem fit. However, before doing so, a reasonable opportunity q being heard in the matter should be given both to the appellant and th, Planning Authority. [S. 56] Recovery of expenses All expenses incurred by the Planning Authority under the above provisions can be recovered by it from the person in default or from the owner of the plot. [S. $7] D. ACQUISITION OF LAND act ifthere der (Sections 125 to 129) a Under. 125 ofthe Act, ifany landis required, reserved or designated he appro in a Regional Plan, Development Plan or a Town Planning Scheme for? yvailable | Public purpose, such land is deemed to be land needed fora public purpose Maharash' under the Land Acquisition Act. th : e When, after the publication of a draft Regional Plan, a development read as re Pian or any other plan or town planning scheme, any land is required ot (ang args reserved for any public purpose specified in any plan or scheme under : the Act, the Planning Authority or the Develo, 5 . pment Author Appropriate Authority may acquire the land - my or an \apsing of (a) by an agreement - by paying an agreed amo any unt; or i Specfied (b) ™ vearsfror Under 5, Periog, it OF construction ptt on the surrendered land, as provided in the Finsl boone eS or the Dg Control Regulations; or evelopment ™ay be, (€)_bymaking an application tothe state Go 'S not a such land under the Land Acquisition act et f0F acquiring Teservat In all such cases, the land, together with th, and be, eat a 3 under clauses (a) oF (0) oF (c) above, vests anseiom eS 50 acquired Th encumbrances in the Planning Authority, the Deyejee™ 294 free of any rota nS the Appropriate Authority, asthe case may be, °P™ENt Authority or — te me © RStig lay Y defesignatet eme fora ic purpose elopment quired or ne under ty or any he owner rendered urther FSI menities lopment equiring cquired of any jority of HEMAHARASHTRA REGIONAL AND TOWN PLANNING ACT, 1966 39 in cases falling under clause (c) abo oe rpese, may make a declaration to that effect area publ ee manner Provided nthe Land Acquistion Ae, toeeatn such dectaration can be made after the expiry of one year from the ata Sr publication of the draft Regional Plan, Development Plan or any othe- heme, as the case may be. On the publication of sac pecaration, the Collector must proceed to take the necessary steps a: dese tustion, as provide inthe Land Acquistion Act. The marke value ite and is, however, to be determined as provided in S. 126 of the ate Act. as observed by the Bombay High Court, under the scheme of the acittereisafallure onthe part of the Appropriate Authority to acquie landunder anagreement, there is no machinery provided under the MRTP va arqure the land, and therefore, the legislature intended to allow aarpepropriate Authority to make use of the complete machinery available under the Land Acquisition Act for this purpose. (State of ‘Maharashtra v. Kamalabai V. Bagad, 1997 (2) MU 427) [The references to the Land Acquisition Act (above) should now be read as referring to the Right to Fair Compensation & Transparency in Lond Acquisition, Rehabilitation & Resettlement Act, 2013.] jan or Sct Lapsing of reservations: itanyland which is reserved, allotted or designated for any purpose specified ina Plan under the Act is not acquired by agreement within ten yearsfrom the date on which the Plan comes into force, orifa declaration under, 126 of the Act is not published in the Official Gazette within such petod the owner ofthe land can serve a notice on the Planning Authority sibs Development Authority or the Appropriate Authority, as the case oot th ne twelve months of the service of such a notice, the land reservation, ve or no steps for its acquisition are commenced, the land becomes 7 tment or designation is deemed to have lapsed and the Vailable to the owner. [S. 127] Th rs steer cou has observed that a question as to whether oF © take steps eae lapsed due to the failure of the Planning authority Reston of lav and the prescribed period (twelve months) is @ mixed gatoun wae act Itwould, therefore, be difficult, if not impossible, "ote Bombay ncn WOuld apply to all cases. (Municipal Corporation 'y V. Hakimwadi Tenants’ Association, AIR 1988 SC 233)Lan LAWS 40 jfferent purpose When land is included in any Plan or scree Sa oui allotted or designated for any specified Puen ose te aor fied thatthe same rand is needed FOr 07H \s of the La State Government may acquire such and under the provision: nd ‘Acquisition Act. [S. 128] Power to acquire land for a. emda bates C09 Possession of land in cases of urgency Under .129 of the Act, fat any time after the under S. 126 of the Act, the State Government, onal by it from the Planning ‘Authority, Development ‘Authority or Appropriate Authority, is satisfied that the possession of any land reserved or designated for a public purpose under a Regional Plan or a Development Plan, is urgently required in the public interest by that Authority, the State Government may, by an order in writing, authorise the Collector to enter on the land and take possession thereof after giving a notice of fifteen days. Thereupon, such land vests in the State Government free from all ‘encumbrances without any further assurance. publication of a notice n application received Before taking possession of such land, the and trees, if any, on the land and for any damage sustained by cua person because of sudden dispossession. The owner of the ia ny een enti to interest on the compensaticn alfiou'at-ehgient nn oo annum from the date of taking possession of the land unero 4% Pet payment of the compensation. upto the date of When possession of land is taken under S, 129 interested person so requests, the Planning Authority or Authority or the Appropriate Authority, as the case m, advance, not exceeding two-thirds of the amount estime to such a person, after executing an appropriate agre, F the Act, if the he Development nt oe may pay an tobe payable ‘ment with him, These or con and a defini Amer