Instruments relating to several distinct matters

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

1. The Sub Registrar Amudalavalasa vs Dankuni Steels LTD

   Supreme Court of India 26 Apr 2023 Binding (Supreme Court) Reportable

   Court's Decision & Legal Precedent

   When a single sale deed purports to convey multiple distinct matters including land, building, and plant and machinery permanently embedded to earth, the entire transaction must be examined by reading the preamble, recitals, operative part and schedule together. If the underlying transaction (such as an auction sale) was for all assets as a composite lot, and the parties' conduct indicates intention to operate the unit as a going concern, then plant and machinery permanently embedded to earth constitutes immovable property subject to stamp duty under Section 5 of the Indian Stamp Act. The registering authorities have power under Section 27 (as amended) and Section 47A to verify the true value and nature of property transferred and to refer the matter to the Collector for determination of market value and proper stamp duty payable. The mere fact that the sale deed describes only land and buildings does not permit avoidance of stamp duty liability on plant and machinery that was actually transferred as part of the composite transaction.

   On this section: Instruments relating to several distinct matters - chargeable with aggregate amount of duties for separate instruments. Court held this applies when one instrument comprises multiple distinct matters like land, building, and plant and machinery

   Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.