Delhi High Court in India Mart’s Plea Set to Examine: Whether Agreement for Co-Working Space can be Termed as Lease or Sub-lease

Delhi High Court in India Mart’s Plea Set to Examine: Whether Agreement for Co-Working Space can be Termed as Lease or Sub-lease

The Delhi High Court is set to examine a significant issue as to whether an agreement for co-working space can be termed as a lease or sub-lease and whether stamp duty would be liable to be paid on such an agreement or not.

The single judge Justice Prathiba M Singh issued notice on a plea moved by India Mart Intermesh Limited challenging an order passed by the Office of Collector of Stamps on 19 December, 2022, upholding the impounding of an agreement entered into between it and an entity namely Top Technologies Pvt. Ltd. to let out a co-working space.

Further, India Mart was ordered to deposit a sum of Rs.10,000 as stamp duty and Rs.5,000 as penalty towards the agreement.

The brief background of the case is that, India Mart had availed the facilities for ten seats in a property from Top Technologies Pvt. Ltd and presented the agreement to the Collector of Stamps who termed it as a lease.

The contention of the Petitioner (India Mart Intermesh Ltd.) was that the use of co-working spaces cannot be termed as lease or sub-lease. The ground of impounding the agreement in question was that it was presented in the form of a general agreement whereas it was a lease agreement and attracted stamp duty.

While issuing notice, the Judge opined that the issue ‘deserves consideration’ as the nature of the agreement in case of co-working elements of a lease exist or not.

However, the Court directed that in the meantime, a sum of Rs. 10,000 must be deposited with the Collector of Stamps within two weeks without prejudice to rights and contentions of the Petitioner.

Thereafter, the Court stayed the impugned order and listed the case for 11 October, 2023.