M/S. RESIDENTS WELFARE ASSOCIATION, NOIDA versus STATE OF U.P. & ORS.

Citation: [2009] 6 S.C.R. 112 · Decided: 15-04-2009 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Appeal(s) allowed

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

Judgment (excerpt)

[2009) 6 S.C.R. 112 
' 
A 
MIS. RESIDENTS WELFARE ASSOCIATION, NOIDA 
v. 
STATE OF U.P. & ORS. 
(Civil Appeal No. 4367 of 2000} 
B 
APRIL 15, 2009 
[DR. ARIJIT PASAYAT AND TARUN CHATIERJEE, JJ.] 
~ 
Stamp Act, 1899 - s. 47 A (as amended by state of U.P.) 
and Schedule 1-B Articles 23 and 63 - allotment of plots -
c By transfer of leasehold rights - From Naida Authority to Co-
operative societies (lessees) and its members (sub-lessees) 
- Further transfer by assignment of leasehold rights from sub-
lessees to the member of residents welfare Association - On 
such transfer Naida Authority not issuing transfer 
D memorafldums for grant of permission for transfer of 
leasehold rights due to court injunction - after a considerable 
period, Noida Authority issuing transfer memorandum -
Regular deeds of transfer executed between the sub-lessees 
and assignees - For registration of the deeds authorities 
E concerned demanding the duty as applicable to sale deed 
under Article 23 of Schedule 1-B on the bash; of current market 
value of the plot alongwith constructed portion thereon - Held: 
The deed in question being an assignment of leasehold rights 
and not a sale deed, article 63 and not article 23 would be 
F applicable - The duty would be calculated on the amount 
mentioned in the deed and not on its market value - Inquiry 
into market value not permissible - Since there was no 
a/fegation of under-valuation of the property reference u/s. 
47A not called for - Relevant date for determination of the 
G consideration of the property in question would the date of 
agreement and not the date when the document was_ 
• 
presented for registration - Transfer of Property Act, 1882 -
...._ 
ss. 54 and 105 - Deeds and Documents. 
Deeds and Documents - Document of assignment -
H 
112 
.... 
RESIDENTS WELFARE ASSOCIATION, NOIDA v. 
113 
STATE OF U.P. & ORS. 
,_ 
Ascertainment of nature - Held: Nomenclature of such A-
-. 
document cannot be said to be determining factor for 
ascertainment of nature of such document. 
NOIDA Authority allotted lands to several Co-
operative Housing Societies by execution of lease deeds. B 
Members of the appellant-Residents Welfare Association 
executed various agreements for transfer of leasehold 
-· 
rights with the Lessee (Cooperative Societies) and the 
sub-lessees {members of the Co-operative societies). 
... 
Sub-lessees further entered into agreements for transfer c 
of leasehold rights with assignees {members of the 
appellant-Association) These agreements were registered 
with the office of Sub-Registrar. However, Noida Authority 
did not issue transfer memorandums for grant of 
permission for transfer of leasehold rights due to a court 
D 
injunction. After it was advertised by public notice that 
Noida Authorities would Issue transfer memorandums, 
various members of the appellant-Association applied for 
and obtained the transfer memorandums. As per one of 
the conditions of transfer memorandum lessees/sub-
lessees executed regular deed of transfer with the E 
assignees. Before submission of the document for 
registration, on enquiry, the assignees were informed that 
~ 
stamp duty required to be fixed on the document was to 
be what was applicable to conveyance under Article 23 
of Schedule 1-B of Stamp Act, on the basis of current F 
market value of the plot alongwith constructed portion 
thereon. Appellant challenged this decision in a writ 
petition, which was dismissed by High Court. Hence the 
present appeal. 
The question for consideration in the present appeal G 
+ 
were whether the documents in question were the deeds 
"of assignment falling ulArt. 63 of the Schedule 1-8 or 
deeds of conveyance to which Article 23 would be 
applicable; whether the condition precedent to pass an 
H 
114 
SUPREME COURT REPORTS 
[2009] 6 S.C.R. 
-
A order u/s. 47 A (as amended by State of U.P.) was present 
~ 
in the case; and whether the relevant date for 
.. 
determining the consideration entered in the document 
would be the market value of the property which was on 
the day of entering into the agreement or that which was 
B on the date of presentation of the document for 
registration. 
Disposing of the appeal, the Court 
HELD: 1. From a plain reading of Section 54 and 
c Section 105 of the Transfer of Property Act, 1882, there 
..
cannot be any doubt that in case of a lease, there is a 
partial transfer and the right of reversion remains with the 
lessor. Whereas in case of a sale, there must be

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