• Deficit stamp duty paid now

Dear Sir/ Madam,

In a civil suit filed for perpetual Injunction order, the respondent having SGPA with Possession (paper possession) but he didn't paid the required stamp duty (6%) but paid only 1% (for GPA) of the market value and even he not having the physical Possession. Sir, my question is, if he paid the deficit stamp duty with penalty will he will get title over that property? This SGPA is just 10 days prior to my Sale Deed (10 years back)and am holding the physical position and title (as i got registered the property by Sale Deed) over the property... Please clarify our doubt....Thanks.
Asked 7 years ago in Property Law
Religion: Hindu

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5 Answers

1) That GPAs are not valid transfers of ownership. Only registered sale deeds are.

2) it appears that seller had executed POA in favour of third person and later sold property to you

3) it is necessary to peruse SGPA nd sale deed executed by seller to advise

Ajay Sethi
Advocate, Mumbai
95197 Answers
7607 Consultations

5.0 on 5.0


stamp duty is the basic requirement of property



Feroz Shaikh
Advocate, Navi Mumbai
407 Answers
58 Consultations

4.4 on 5.0


The Supreme Court in Suraj Lamps & Industries Pvt Ltd. v. State of Haryana and another in (Special Leave Petition (C) No.13917 of 2009-Decided on [deleted]) had declared that there cannot be transfer of title by GPA/SA/WILLs transactions. Only registered sale deed /conveyance is a valid mode of transfer of title in immovable property.

So in your case, your Registered sale deed is the only instrument valid as per Transfer of Property Act.

The Supreme Court in the above mentioned case also emphasised that A power of attorney is not an instrument

of transfer in regard to any right, title or interest in an immovable property.

Also the Power of attorney itself is Invalid as Full Stamp duty has not been paid. So the Power of attorney cannot be regularised now by paying the deficit stamp duty.

So the answer to your query is

a) Your registered sale deed coupled with Possession gives you the absolute ownership rights/

b) Power of attorney is not a valid conveyancing deed subsequent to the judgment of supreme court and

c) more so in your case, the requisite stamp duty has not been paid and hence the document itself is null and void.

So no worries.

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

The holding of property by a power of attorney deed is invalid and shall not confer title to the holder of the power.

The supreme court has clearly given a ruling terming it is illegal and not maintainable.

Property sales through the common practice of general power of attorney (GPA) will not give ownership title to the buyer.

In a landmark judgment that is expected to send a large number of property owners into a tizzy, the Supreme Court held that the GPA method of immovable property sales is not a valid form of transfer of property.

Going into the legality of such transfers, the court said any contract of sale which was not a registered sale deed would fall short of the requirements of the relevant provisions of the Transfer of Property Act and could not confer any title.

The court said a transfer of property by way of sale could only be by a sale deed. "In the absence of a deed of conveyance (duly stamped and registered as required by law), no right, title or interest in an immovable property can be transferred," the bench said.

T Kalaiselvan
Advocate, Vellore
85398 Answers
2235 Consultations

5.0 on 5.0

1. Do note that any document which is not properly stamped can not be relied upon by court unless the full stamp duty with penalty is paid by the party which is relying upon the said document.

2. So if your other party is trying to file it then he will have to pay the deficit fees along with penalty. There is no need for you to pay the same.

3.So act accordingly.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
497 Consultations

5.0 on 5.0

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