The bombay stamp act, 1958.

Prakash S. B. (Querist) 23 August 2013 This query is : Resolved
Two Agreements for mutual transfer by way of exchange of flats were entered into on 19.10.1989 between two members of the same Society. One of the members, Mr. N. K. Nair, owner of the smaller flat (325 sq. ft / B-11)needed a bigger flat (600 sq. ft. / B-13)owned by my mother (late Smt. Saguna Bankeshwar) and vice versa and Mr. N. K. Nair agreed to pay Rs. 1.65 Lacs to my mother for equality of exchange.

Subsequently, Mr. N. K. Nair, who became the owner of the bigger flat (600 sq. ft. / Flat. No. B-13)and my mother (late Smt. Saguna Bankeshwar), who became the owner of the smaller flat (325 sq. ft. / Flat. No. B-11) filed two Applications dated 20.08.2008 under the Government Order Revenue & Forest department No. Mudrank 2007/922/C.R.199/M-1, dated 7th June 2008 (ABHAY YOJANA 2008.

On receiving a Demand Notice signed by the Collector of Stamps, Andheri, Bandra East, for payment of stamp duty, Mr. N. K. Nair, the owner of the bigger flat (600 sq. ft. / B-13), paid Rs. 18,920/- towards deficit stamp duty and Rs. 500/- towards penalty.

Surprisingly, my mother (late Mrs. Saguna Bankeshwar), the owner of the smaller flat (325 sq. ft. / B-11)also received a similar Demand Notice for payment of Rs. 18,920/- towards deficit stamp duty and for payment of Rs. 500/- towards penalty. However, my mother did not pay the said deficit stamp duty and the said penalty on seeking legal opinion that she was not liable to pay any stamp duty in view of the fact that the Agreements between the parties were for mutual transfer by way of exchange of flats / property, as envisaged under Article 32 of the Bombay Stamp Act, 1958, and that Mr. N. K. Nair had already paid the deficit stamp duty of Rs. 18,920/- as per Clause (d) of Article 25 of the Bombay Stamp Act on the market value of the property of the greatest value by reason of Article 32 of the Act, the market value of his Flat (600 sq. ft.)being greater than the market value of the flat owned by my mother (325 sq. ft).

I subsequently wrote two Registered Post A.D. letters addressed to the Collector of Stamps, Andheri, Bandra East, and also followed it up by submitting a letter / application to him (Hand Delivery and receipt duly acknowledged) for review of my mother's case. There is no response from the said Collector of Stamps or from the lower staff on even making inquiries personally.

Hence the need for expert advice on remedies available to me.

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ajay sethi (Expert) 23 August 2013
wait and watch . you have already taken legal opinion . deficit stamp duty has been paid by Mr nair already .

Rajendra K Goyal (Expert) 23 August 2013
The legal opinion has been taken by you. Wait for the reply of the office. You can seek status of the case through RTI.