Samit Shukla, Partner at DSK Legal appointed as an Amicus Curiae by Bombay High Court
Samit Shukla, Partner at DSK Legal appointed as an Amicus Curiae by Bombay High Court
Samit Shukla, Partner at DSK Legal was appointed as an Amicus Curiae, by the Hon'ble Bombay High Court in deciding a long pending question of law relating to stamping of a Permanent Alternate Allotment Agreement ("PAAA") executed in favor of members of Co-operative Housing Societies pursuant to redevelopment undertaken by them, and consequential challenge to Circulars dated March 30, 2017, and June 23, 2015 issued by the Chief Controlling Revenue Authority of the State of Maharashtra. ("Impugned Circulars").
The Bombay High Court by an order dated February 17, 2023 ("the Order") passed in the above group of Writ Petitions, set aside and revoked the said Impugned Circulars, and acknowledged the valuable assistance of Samit in assisting the Court.
The Impugned Circulars contemplate that PAAA executed between the developer and members of the society requires to be stamped again despite the fact that the development agreement executed between the developer and the society is already stamped.
The rationale behind the Impugned Circulars was that members were not parties to the original development agreement and therefore benefit of Section 4 of the Maharashtra Stamp Act 1958 cannot be extended.
After briefly hearing to the parties of the Writ Petitions and the suggestions and assistance provided by Samit, the Court inter alia held that rationale of the stamp authorities in levying stamp duty on PAAA is erroneous since a Society is nothing but a compendium of the members, which cannot exist with them and the acts of the Society is nothing but majority will of its members. Thus, PAAA in respect of (i) area which is commensurate to area which the member already possessed and (ii) additional area which the members are entitled to in law cannot be subject to levy of stamp duty.
The Order has put an end to a long-drawn litigation pending since 2006 and is a big relief to the real estate sector.
Samit was assisted by Siddharth Shah (Senior Associate) and Anuj Savla (Article Clerk).
