BLACK PEARL HOTELS (PVT) LTD. versus M/S PLANET M RETAIL LTD.

Citation: [2017] 2 S.C.R. 50 · Decided: 17-02-2017 · Supreme Court of India · Bench: DIPAK MISRA · Disposal: Appeal(s) allowed

Cited by 1 judgment(s) · cites 2 · see the full citation network in Lexace

Judgment (excerpt)

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[2017] 2 S.C.R. 50 
BLACK PEARL HOTELS (PVT) LTD. 
v. 
MIS PLANET M RETAIL LTD. 
(Civil Appeal No. 2973-2974of2017) 
FEBRUARY 17, 20 l 7 
[DIPAK MISRA, R. BANUMATHI AND 
MOHAN M. SHANTANAGOUDAR, JJ.] 
Karnataka Stamp Act, 1957: 
s. 33(2) Proviso (b) - Scope of - In petition u!s. 11 of 
Arbitration and Conciliation Act,1996, the Judge of High Court 
referred the matter to the Registrar - To examine the nature and 
character of the instrument and then to determine whether the 
instrument was duly stamped - Propriety of - Held: Proviso (b) to 
Sub-section (2) of s. 33 empowers the Judge of High Court only to 
examine the instrument for the purpose of determining as to whether 
the instrument is duly stamped or not and for impounding the 
same - The provision does not contemplate any adjudication as 
regarqs the nature and characJer of the instrument - Such 
determination is part of judicial function, and the same cannot be 
delegated. 
Words and Phrases: 
'Duly stamped' - Meaning of, in the context of s. 2(l){e) of 
Karnataka Stamp Act, 1957. 
Allowing the appeals and remitting the matter to High Court, 
the Court 
HELD: 1. Sub-section (1) of Section 33 ofKarnataka Stamp 
Act, 1957 stipulates that for the purpose of finding out as to 
whether the instrument is 'duly stamped' or not and consequently 
as to whether such instrument liable to be impounded or not, 
examination of the instrument is necessary. Thus, Section 33 
fundamentally pertains to the examination and impounding of an 
instrument. To appreciate the sweep and pnrport of Section 
33(2)(b), it is necessary to refer to the dictionary clause. [Para 
15] [59-C-D] 
50 
BLACK PEARL HOTELS (PVT) LTD. v. M/S PLANET M 
RETAIL LTD. 
2. The definition "duly stamped" as contained in Section 
2(l)(e) of 1957 Act postulates that unless the context otherwise 
requires "Duly Stamped" as applied to an instrument, means that 
the instrument bears an adhesive stamp of not less than the proper 
amount and that such stamp has been affixed or used in accordance 
with I~~ for the time being in force in the territories of the State 
of Karnataka. Thus, the "Duly Stamped" instrument should 
comply with three requirements, namely, (i) the stamp must be 
of a proper amount; (ii) should bear proper description of stamp; 
and (iii) the stamp must have been affixed and used according to 
law for the time being in force in the State of Karnataka. [Para 
15) [59-D-F] 
3. Proviso (b) to Sub-Section (2) of Section 33, empowers 
the Judge of the High Court to delegate the duty of examination 
and impounding the instrument to such officer as the Court 
appoints in that behalf. The delegation by a Judge of the High 
Court will not clothe the officer the jurisdiction of determining 
the nature and character of the instrument inasmuch as such fact 
needs to be determined by the Judge while exercising judicial 
function. Such judicial function is not to be delegated to an officer 
of the Court by the Judge of the High Court. What is delegated 
under the proviso (b) of sub-section (2) of Section 33 is only to 
examine the instrument for the purpose Of determining as to 
whether the instrument is duly stamped or not and for impounding 
the same. Section 33(2)(b) does not ~ontemplate or permit any 
adjudication as regards the nature and character of the instrument. 
The delegated power has to be restricted to cover the area, that 
is, whether the instrument bears the proper stamp and thus 
complies with the requirement of being "duly stamped", and the 
stamp duty payable on the same must be determined only with 
reference to the terms of the instrument. [Para 16) [59-F-G, H; 
60-A-C) 
4. The word "examination" used in proviso (b) to Section 
33(2) of the Act cannot be allowed to have such wide amplitude 
as the context does not so envisage. It has to be conferred 
restricted meaning which is in consonance with the provision and 
the scheme of the 1957 Act. And the. narrow meaning, is 
examination by the officer of the Court is only to determinate as 
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SUPREME COURT REPORTS 
[2017] 2 S.C.R. 
to the adequacy or inadequacy of the stamp duty paid and to 
impound the instrument. [Para 16) [60-D-E) 
5. In the present case, the Judge has left both the aspects; 
that is, determination of the nature and character of the document 
and impounding of the same to the Registrar. A judicial functioning 
has to be done in a judicial mann

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