The Bombay High Court recently directed the state government to refund ₹3 lakh in stamp duty to a homebuyer who had accidentally paid the amount under the wrong category.

The case was heard by Justice Milind N. Jadhav, who dealt with a situation where a homebuyer made a mistake while paying stamp duty.

Facts of the Case:

In March 2018, the petitioner, through his lawyer, purchased electronic stamps to register an agreement for purchasing a residential flat. However, due to an inadvertent error while selecting the category, he paid the stamp duty under the wrong head instead of the correct non-judicial category. Specifically, he selected and punched “consolidated stamp duty and Superintendent of Stamps.”

After realizing the mistake, the petitioner applied for a refund before the Collector of Stamps office in Borivli. However, the authority rejected the application, stating that it was filed beyond the prescribed limitation period. According to the authority, there was a delay of about two months and eight days beyond the six-month deadline.

The petitioner then appealed to the Chief Controlling Revenue Authority, but the appeal was also dismissed, with the authority agreeing with the Collector’s decision.

Petition Before HC:

After facing rejection from both authorities, the petitioner approached the High Court by filing a writ petition. He challenged the rejection, arguing that the money was paid by mistake and should not be denied only because of delay.

Court’s Key observation:

The Court observed:

“The Government cannot unjustly enrich itself by forfeiting the stamp duty amount deposited under a wrong head,”

It further stated:

“Citizens cannot be penalized for an inadvertent mistake.”

Justice Milind N. Jadhav held that a small procedural delay cannot defeat a genuine claim, especially when the payment was made by mistake and the stamps were never used.

The Court also noted that the delay was partly explained by the petitioner’s health issues and was not serious enough to deny relief.

Final Order

Accordingly, the Court ordered:

“Respondents are directed to refund the stamp duty amount of Rs. 3,00,100/- to the Petitioner along with simple interest at the rate of 4% per annum within a period of four weeks from the date of uploading of this judgment.”

The writ petition was allowed and disposed of in these terms.

Case Details: Manjeet Singh son of Ujagar Singh vs The Chief Controller Revenue Authority & Ors.