SRI. SHIVANAND K. SABADI vs THE DISTRICT COMMISSIONER

- 1 -
HC-KAR
NC: 2026:KHC-D:16326
WP No. 105280 of 2025


CNR: KAHC020161522025




IN THE HIGH COURT OF KARNATAKA AT DHARWAD



TH
DATED THIS THE 30 DAY OF SEPTEMBER, 2026

BEFORE

THE HON'BLE MR. JUSTICE M.G.S. KAMAL
WRIT PETITION NO. 105280 OF 2025 (GM-ST/RN)

BETWEEN:

SRI. SHIVANAND K. SHABADI
AGE: 65 YEARS, OCC. BUSINESS,
RESIDING AT WARD NO.9,
SHABADI GALLI, STATION ROAD,
BAGALKOT,
TQ AND DIST: BAGALKOT-587101.
…PETITIONER
(BY SRI. SAURABH SONDUR, ADVOCATE)

AND:

1. THE DISTRICT REGISTRAR &
DEPUTY REGISTRAR OF STAMPS,
BAGALKOT,
ZILLA AADALITHA BHAVANA,
ND
2 FLOOR, ROOM NO. 204,205,
NAVANAGAR, BAGALKOT- 587103,
DIST: BAGALKOT.

2. SMT. PRATIBA S. SHABADI
AGE: 57 YEARS, OCC. HOUSEWIFE,
RESIDING AT WARD NO.9,
SHABADI GALLI, STATION ROAD,
BAGALKOT, TQ AND DIST: BAGALKOT- 587101.

3. SMT. SUVARNA SHETTAR,
AGED: 65 YEARS, OCC. HOUSEWIFE
RESIDING AT IRAKALLLAGA VILLAGE,
GANGAVATI TALUK, DIST: KOPPAL- 583237.

4. THE SPECIAL LAND ACQUISITION OFFICER,
BTDA, BAGALKOT
BAGALKOT TOWN DEVELOPMENT AUTHORITY,
VIDYAGIRI, BAGALKOT -587102.











K M
SOMASHEKAR
Digitally signed by K M
SOMASHEKAR
Location: HIGH COURT
OF KARNATAKA
DHARWAD BENCH

- 2 -
HC-KAR
NC: 2026:KHC-D:16326
WP No. 105280 of 2025


CNR: KAHC020161522025



5. SRI. MUTTAPPA MAHANTAPPA SHETTAR,
AGED ABOUT 61 YEARS,
OCC. BUSINESS,
OPP. OLD IB, BAGALKOT -587101,
TQ AND DIST: BAGALKOT.

6. SMT. ROOPA IRRANNA SHEELVANTAR,
AGED ABOUT 37 YEARS,
OCC. HOUSEWIFE,
R/O: C/O S.M. SHETTAR, OPP. OLD IB,
BAGALKOT -587101,
TQ AND DIST: BAGALKOT.

7. SRI AMITKUMAR SHUBLINGA NARA,
AGED ABOUT 51 YEARS,
OCC. BUSINESS,
R/O: OPP. SAKRI HIGH SCHOOL,
EXTENSION AREA, BAGALKOT, 587101,
DIST: BAGALKOT.

8. SMT. SHARANAVVA HUCHAPPA ABAKARI,
AGED ABOUT 57 YEARS,
OCC. HOUSEWIFE, OPP. OLD IB,
BAGALKOT -587101,
TQ AND DIST: BAGALKOT.

9. SRI. MURALIDHAR MADANLAL KABRA,
AGED: MAJOR, OCC. BUSINESS,
R/O: WARD NO. 10, OPP. OLD IB,
BAGALKOT,
TQ AND DIST: BAGALKOT- 587101.

10. SRI. ASHISH BHAGWANDAS KASAT,
AGED: MAJOR, OCC. BUSINESS,
R/O: WARD NO.10, OPP. OLD IB,
BAGALKOT,
TQ AND DIST:; BAGALKOT- 587101.

11. SRI. SHRENIK KUMAR HANSARAJ BETAL,
AGED: MAJOR, OCC. BUSINESS,
R/O: WARD NO. 10, OPP. OLD IB,
BAGALKOT, TQ AND DIST: BAGALKOT- 587101.

- 3 -
HC-KAR
NC: 2026:KHC-D:16326
WP No. 105280 of 2025


CNR: KAHC020161522025


12. SRI. LAXMINARAYAN BHAGIRATH RATHI,
AGE: 66 YEARS, OCC. BUSINESS,
R/O: RATHI BUILDING, WARD NO. 10,
OPP. OLD IB, BAGALKOT,
DIST: BAGALKOT- 587101.

13. SMT. SMITA GURURAJ KULKARANI,
AGED: MAJOR, OCC: HOUSEWIFE,
R/O: WARD NO. 10, OPP. OLD IB,
BAGALKOT,
TQ AND DIST: BAGALKOT- 587101.

14. SMT. SHILPA GURURAJ KULKARANI,
AGED: MAJOR, OCC: HOUSEWIFE,
R/O: WARD NO. 10, OPP. OLD IB,
BAGALKOT,
TQ AND DIST: BAGALKOT- 587101.

15. SRI. LAXMINARAYAN BAURILAL KASAT,
AGED: MAJOR, OCC. BUSINESS,
R/O: WARD NO. 10, OPP. OLD IB,
BAGALKOT,
TQ AND DIST: BAGALKOT- 587101.

16. SRI. NARAYANDAS BAURILAL KASAT,
AGED: MAJOR, OCC: BUSINESS,
R/O: WARD NO. 10, OPP. OLD IB,
BAGALKOT,
TQ AND DIST: BAGALKOT- 587101.

17. SRI. VIJAYKUMAR BAURILAL KASAT,
AGED: MAJOR, OCC. BUSINESS,
R/O: WARD NO. 10, OPP. OLD IB,
BAGALKOT,
TQ AND DIST: BAGALKOT- 587101.

18. SRI. VINODKUMAR BAURILAL KASAT,
AGED: MAJOR, OCC. BUSINESS,
R/O: WARD NO. 10, OPP. OLD IB,
BAGALKOT, TQ AND DIST: BAGALKOT- 587101.

19. SRI. PRAKASHCHAND SARMALLAJI JAIN,
AGED ABOUT 61 YEARS, OCC. BUSINESS,
ST
R/O: P.S. JAIN BUILDING, 1 FLOOR,

- 4 -
HC-KAR
NC: 2026:KHC-D:16326
WP No. 105280 of 2025


CNR: KAHC020161522025


SHABADI COMPOUND,
EXTENSION AREA,
WARD NO. 10, BAGALKOT,
DIST: BAGALKOT- 587101.

SMT. PULAVANTIBAI BABULAL PORWAL
SINCE DECEASED BY HER LR’S

20. SRI. BABULAL S. PORWAL,
AGED: 68 YEARS, OCC. BUSINESS,
R/O: PORWAL BUILDING,
SHABADI COMPOUND,
EXTENSION AREA, WARD NO.10,
BAGALKOT, DIST: BAGALKOT- 587101.

21. SRI. GIRISH B. PORWAL,
AGED: 45 YEARS, OCC. BUSINESS,
R/O: PORWAL BUILDING,
SHABADI COMPOUND,
EXTENSION AREA, WARD NO.10,
BAGALKOT, DIST: BAGALKOT- 587101.

22. SRI. MANOJ B. PORWAL,
AGED: 42 YEARS, OCC. BUSINESS,
R/O: PORWAL BUILDING,
SHABADI COMPOUND,
EXTENSION AREA, WARD NO.10,
BAGALKOT, DIST: BAGALKOT- 587101.

23. SMT. ANITA G. JAIN
AGED: 39 YEARS, OCC. HOUSEWIFE,
R/O: PORWAL BUILDING,
SHABADI COMPOUND,
EXTENSION AREA, WARD NO.10,
BAGALKOT, DIST: BAGALKOT- 587101.

24. SMT. SONA B. PORWAL,
AGED: 35 YEARS, OCC. HOUSEWIFE,
R/O: PORWAL BUILDING, SHABADI COMPOUND,
EXTENSION AREA, WARD NO.10,
BAGALKOT, DIST: BAGALKOT- 587101.

25. SRI. KRISHNAIAH GOVINDAPPA ILLUR,
AGED: MAJOR, OCC. BUSINESS,

- 5 -
HC-KAR
NC: 2026:KHC-D:16326
WP No. 105280 of 2025


CNR: KAHC020161522025


R/O: SHABADI COMPOUND,
EXTENSION AREA, WARD NO. 10,
BAGALKOT -587101,
TQ AND DIST: BAGALKOT.

26. SMT. RAJESHWARI GURURAJ ANGADI,
AGED: MAJOR, OCC. HOUSEWIFE,
R/O: SHABADI COMPOUND,
EXTENSION AREA, WARD NO. 10,
BAGALKOT – 587101,
TQ AND DIST: BAGALKOT- 587101.

27. SMT. MANJULA MALLIKARJUN MANNIKATTI,
AGED: MAJOR, OCC. HOUSEWIFE,
R/O: SHABADI COMPOUND,
EXTENSION AREA, WARD NO. 10,
BAGALKOT – 587101,
TQ AND DIST: BAGALKOT- 587101.
…RESPONDENT
(BY SRI. PRASHANTH V. MOGALI, HCGP FOR R1;
SRI. M.B. HIREMATH, ADVOCATE FOR R3;
SRI. SANJAY CHANAL, ADVOCATE FOR R4, R2, R6, TO R8,
R10 & R11;
NOTICE TO R15 TO R27 IS SERVED;
NOTICE TO R5, R9, R13, R14 &
LR’S OF R12 IS DISPENSED WITH)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA, PRAYING TO, A. ISSUE A WRIT OR
ORDER OR DIRECTION IN THE NATURE OF CERTIORARI SETTING
ASIDE THE IMPUGNED DEMAND NOTICE BEARING NO.JINOKABA
/MUDRANK (ADJUDICATION)/2025-26/240, DATED 14.07.2025
PASSED BY THE DEPUTY REGISTRAR AND DISTRICT REGISTRAR OF
STAMPS, BAGALKOT AT ANNEXURE-A. B) ISSUE A WRIT OR ORDER
OR DIRECTION IN THE NATURE OF MANDAMUS DIRECTING THE
DEPUTY REGISTRAR AND DISTRICT REGISTRAR OF STAMPS TO
RECONSIDER THE IMPOSITION OF THE MAXIMUM PENALTY AND
IMPOSE COMMENSURATE PENALTY.

THIS WRIT PETITION, COMING ON FOR ORDERS, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE M.G.S. KAMAL

- 6 -
HC-KAR
NC: 2026:KHC-D:16326
WP No. 105280 of 2025


CNR: KAHC020161522025


ORAL ORDER

1. The petitioner, who is defendant No.2 in O.S.No.150/2018
on the file of the I Additional Senior Civil Judge, Bagalkote,
is before this Court being aggrieved by the notice dated
14.07.2025 produced at Annexure-A, in terms of which the
District Registrar, Bagalkote, has determined the stamp
duty and penalty payable at ₹3,66,158/-, exercising the
power under Section 34 of the Karnataka Stamp Act, 1957
(‘the Stamp Act’ for short), in respect of a partition deed
entered into between the petitioner and his father.

2. The aforesaid suit is filed by the respondent No.3 seeking
partition and separate possession, in which the petitioner
has been arrayed as defendant No.2. The case of the
petitioner is that there had been a partition of the suit
properties as far back as on 27.11.1991, in terms of which
item No.7 of the plaint schedule property was partitioned
between defendant No.2/petitioner herein and his father.
When the said partition deed was presented by the
petitioner herein during the evidence, the trial Court vide
Order dated 04.04.2025 impounded the said document
and by communication dated 09.04.2025 forwarded

- 7 -
HC-KAR
NC: 2026:KHC-D:16326
WP No. 105280 of 2025


CNR: KAHC020161522025


certified copy of the partition deed dated 27.11.1991 to
the Deputy Commissioner, Bagalkote, to initiate
proceedings to recover the deficit stamp duty and penalty
payable on the said document.

3. In furtherance to the same, the District Registrar,
Bagalkote, has considered the said document for the
purpose of determination of payment of stamp duty under
Section 2(1)(k) of the Karnataka Stamp Act and has
determined stamp duty payable at ₹33,283/- and penalty
at 10 times of the said amount, aggregating a sum of
₹3,66,158/-. It is this notice, which is being challenged.

4. Counsel for the petitioner submits that petitioner is
aggrieved only to the extent of imposition of ten times the
amount of penalty on the subject instrument. The
petitioner has no grievance with regard to payment of the
stamp duty as determined.


5. Learned counsel for the petitioner relies upon the
judgment in the Apex Court in the case of Seetharama
1
Shetty v. Monappa Shetty reported and referring to
paragraph 21.6 thereof, submits that the Apex Court has

1
2024 SCC OnLine SC 2320

- 8 -
HC-KAR
NC: 2026:KHC-D:16326
WP No. 105280 of 2025


CNR: KAHC020161522025


taken a view that the ten times penalty is the farthest
limit, which is required to be imposed only under very
extreme circumstances and not in all the cases.

6. He submits that no reason assigned by the Deputy
Commissioner to impose this extreme amount of penalty
while the provision provides discretion and 10 times
penalty is the maximum while the Deputy Commissioner
has discretion to impose lesser amount of penalty.
Therefore in the absence of there being any mala fide on
the part of the petitioner, the Deputy Commissioner ought
not to have imposed 10 times of penalty.

7. Learned HCGP on the other hand, justifying the order,
submits that the determination of stamp duty and penalty
is upon the direction issued by the trial Court and in
accordance with provisions of Section 34 of the Karnataka
Stamp Act, and same cannot be found fault with.

8. Heard. Perused the records.

9. Inasmuch as the grievance of the petitioner is only to the
extent of rate of ten times of the penalty, this petition is
restricted only to that extent.

- 9 -
HC-KAR
NC: 2026:KHC-D:16326
WP No. 105280 of 2025


CNR: KAHC020161522025



10. The impugned order, though titled as a notice is indeed an
order determining the stamp duty and penalty payable by
the petitioner. The reasons assigned by the District
Registrar for imposition of ten times penalty read as
under:
PÀ£ÁðlPÀ ¸ÀPÁðgÀ
(£ÉÆÃAzÀt ªÀÄvÀÄÛ ªÀÄÄzÁæAPÀ E¯ÁSÉ)
f¯Áè £ÉÆÃAzÀuÁ¢üPÁjUÀ¼À PÀbÉÃj ¨ÁUÀ®PÉÆÃmÉ
204, 205
f¯ÁèqÀ½vÀ ¨sÀªÀ£À, 2£Éà ªÀĺÀr, PÉÆoÀr ¸ÀASÉå £ÀªÀ£ÀUÀgÀ ¨ÁUÀ®PÉÆÃmÉ.
E-mail: [email protected]

Adjudication 2025-26/214 :29-05-
¸ÀASÉå:f£ÉÆÃPÀ¨Á/ªÀÄÄzÁæAPÀ( )/ ¢£ÁAPÀ
2025


E-300524/214
-:£ÉÆÃn¸ï:-


150/2018
«µÀAiÀÄ:-N.J¸ï £ÀA§gÀ gÀ°è ºÁdgÀÄ¥Àr¹zÀ C¥À¸ÁvÀ ªÁ¥ÀvÀæ
¸ÀägÀuÁxÀð n¥Ààt ¥ÀvÀæPÉÌ ªÀÄÄzÁæAPÀ ±ÀÄ®Ì ªÀÄvÀÄÛ zÀAqÀ ±ÀÄ®Ì ¯ÉPÁÌZÁgÀ ªÀiÁr
¥ÀPÀëUÁgÀjAzÀ ¨sÀgÀuÁ ªÀiÁr¹PÉƼÀÄîªÀ PÀÄjvÀÄ.
1)
G¯ÉèÃR: ªÀiÁ£Àå ºÉZÀÄѪÀj ¹«í¯ï £ÁåAiÀiÁ¢üñÀgÀÄ ºÁUÀÆ eÉ.JªÀiï.J¥sï.¹£ÁåAiÀiÁ®AiÀÄ
09-04-2025
¨ÁUÀ®PÉÆÃmÉ gÀªÀgÀ ¥ÀvÀæ ¢£ÁAPÀ:
2
)G¥À £ÉÆÃAzÀuÁ¢üPÁjUÀ¼ÀÄ ¨ÁUÀ®PÉÆÃmÉ EªÀgÀ ¥ÀvÀæ
2025- 26/49, :20-05-2025
¸ÀASÉå:¨sÀÆ.PÀA.¨Á/ ¢£ÁAPÀ
( ¢£ÁAPÀ: 22-05-225)

1 2
ªÉÄïÁÌt¹zÀ «µÀAiÀÄ ºÁUÀÆ G¯ÉèÃRPÉÌ ¸ÀA§A¢ü¹zÀAvÉ, G¯ÉèÃR ªÀÄvÀÄÛ gÀ£ÀéAiÀÄ
150/2018
N.J¸ï £ÀA§gÀ gÀ°è ¸ÁPÁëzsÁgÀªÁV ºÁdgÀÄ¥Àr¹zÀ C¥À¸ÁvÀ ªÁnߥÀvÀæ
¸ÀägÀuÁxÀð n¥Ààt ¥ÀvÀæPÉÌ ¨sÀj¸À¨ÉÃPÁzÀ ªÀÄÄzÁæAPÀ ºÁUÀÆ zÀAqÀ ±ÀÄ®ÌzÀ §UÉÎ ¯ÉPÁÌZÁgÀ ªÀiÁr
¸ÀzÀj ªÉÆvÀÛªÀ£ÀÄß ¥ÀPÀëUÁgÀjAzÀ ¨sÀgÀuÁ ªÀiÁrPÉƼÀî®Ä °TvÀ ¥ÀvÀæªÀ£ÀÄß F PÀbÉÃjUÉ
PÀ¼ÀÄ»¹PÉÆnÖzÀÄÝ EzÉ.
¥Àæ²ßvÀ °TvÀªÀ£ÀÄß ¥Àj²Ã°¸À¯ÁV EzÀgÀ°è ¨ÁUÀ®PÉÆÃmÉ vÁ®ÆPÀ ¥ÉÊQ ¨ÁUÀ®PÉÆÃmÉ
158 10 158
±ÀºÀgÀzÀ n.n £ÀA§gÀ J, ªÁqÀð £ÀA§gÀ , n.¦ £ÀA§gÀ ©, D¹ÛAiÀÄ PÀÄlÄA§zÀ
C¥À¸ÁvÀ ªÁnߥÀvÀæ ¸ÀägÀuÁxÀð n¥Ààt ªÀiÁrPÉÆArzÀÄÝ EgÀÄvÀÛzÉ.
¥Àæ²ßÃvÀ C¥À¸ÁvÀ ªÁlì¥ÀvÀæ ¸ÀägÀuÁxÀð n¥Ààt ¥ÀvÀæ MAzÀÄ °TvÀªÁVgÀÄvÀÛzÉ. ¸ÀzÀj
1957 3 17
°TvÀPÉÌ PÀ£ÁðlPÀ ªÀÄÄzÁæAPÀ PÁAiÉÄÝ gÀ PÀ®A ªÀÄvÀÄÛ gÀr °TvÀªÀ£ÀÄß §gÉzÀÄ,

- 10 -
HC-KAR
NC: 2026:KHC-D:16326
WP No. 105280 of 2025


CNR: KAHC020161522025


¸À» ªÀiÁrzÀ ¢£ÁAPÀzÀAzÀÄ E®èªÉà CzÀQÌAvÀ ¥ÀǪÀðzÀ°è ªÀÄÄzÁæAPÀ ±ÀĮ̪À£ÀÄß CA¢UÉ
¥ÀæZÀ°vÀ«zÀÝ ªÀÄÄzÁæAPÀ zÀgÀzÀ DzsÁgÀzÀ ªÉÄÃ¯É µÉqÀÆå¯ï D¥sï DnðPÀ¯ï £À°è ¥Àæ¸ÁÛ¦¹gÀĪÀAvÉ
DPÀgÀuÉ ªÀiÁqÀĪÀÅzÀÄ CªÀ±Àå«gÀÄvÀÛzÉ.
¸ÀzÀj C¥À¸ÁvÀ ªÁlì¥ÀvÀæ ¸ÀägÀuÁxÀð n¥Ààt ¥ÀvÀæªÀ£ÀÄß ¥Àj²Ã°¸À¯ÁV ¨ÁUÀ®PÉÆÃmÉ
158 10
vÁ®ÆPÀ ¥ÉÊQ ¨ÁUÀ®PÉÆÃmÉ ±ÀºÀgÀzÀ n.¦ £ÀA§gÀ J ªÁqÀð £ÀA§gÀ , n.¦ £ÀA§gÀ
158
©. ¸ÀzÀj D¹ÛUÀ¼À£ÀÄß vÀAzÉ ªÀÄUÀ PÀÆrPÉÆAqÀÄ C¥À¸ÁvÀ ªÁnߥÀvÀæ ¸ÀägÀuÁxÀð n¥ÀàtÂ
27-01-1991
¥ÀvÀæªÀ£ÀÄß ¢£ÁAPÀ: gÀAzÀÄ §gɬĹ ¸À» ªÀiÁrzÀÄÝ EgÀÄvÀÛzÉ. ¸ÀzÀj ¥ÀvÀæzÀ°èAiÀÄ
1957 2(1)(k
CA±ÀUÀ¼ÀÄ £ÉÆÃzÀt ªÀÄÄzÁæAPÀ PÁAiÉÄÝ gÀ PÀ®A ) ªÁåSÁå£ÀPÉÌ
C£ÀÄUÀÄtªÁVgÀĪÀzÀjAzÀ ¥Àæ²ßvÀ °TvÀªÀ£ÀÄß ªÁnß ¥ÀvÀæªÉAzÀÄ ¥ÀjUÀt¸À§ºÀÄzÁVgÀÄvÀÛzÉ. ¥ÀæAiÀÄÄPÀÛ
1957 21 1979
¸ÀzÀj °TvÀPÉÌ PÀ£ÁðlPÀ ªÀÄÄzÁæAPÀ PÁAiÉÄÝ gÀ wzÀÄÝ¥Àr PÁAiÉÄÝ £ÀA§gÀ D¥sï
39
CnðPÀ¯ï gÀ ¥ÀæPÁgÀ ªÀÄÄzÁæAPÀ ±ÀÄ®Ì ¨sÀgÀuÁ ªÀiÁqÀ¨ÉÃPÁUÀÄvÀÛzÉ.
Partition Instrument of as defined by
Section 2(1)(k)










The same duty as a (Bond No.12) for
the amount of the value of the
separated share or shares of the
property,
N.B The largest share remaining after
the property is partitioned (or if there
are two or more shares of equal value
and not smaller than any of the other
shares than one of such equal shares)
shall be deemed to be that from which
the other shares are separated.
.
JA§ÄzÁVgÀÄvÀÛzÉ

1957
»ÃUÉ ¤zsÀðj¹zÀ ±ÉÃgÀÄUÀ¼À ªÀiË®åUÀ¼À ªÉÄÃ¯É PÀ£ÁðlPÀ ªÀÄÄzÁæAPÀ PÁAiÉÄÝ gÀ wzÀÄÝ¥Àr PÁAiÉÄÝ
10 1990
£ÀA§gÀ D¥sï gÀ ¥ÀæPÁgÀ ªÀÄÄzÁæAPÀ ±ÀÄ®Ì «¢ü¸À¨ÉÃPÁUÀÄvÀÛzÉ. F ªÉÄÃ¯É PÁt¹zÀAvÉ
ªÀÄÄzÁæAPÀ ±ÀÄ®Ì «¢ü¸À®Ä ±ÉÃgÀÄUÀ¼À°è M¼ÀUÉÆAqÀ C¹ÛUÀ¼À ªÀiË®å ¤zsÀðj¸À®Ä ªÉÄïÁÌt¹zÀ D¹ÛUÀ¼À
1991
£Éà ¸Á°£À°èzÀÝ D¹ÛUÀ¼À ¹nJ¸ï GvÁgÉ ¥Àæw, ¤ªÉñÀUÀ¼À C¼ÀvÉ, SÁvÁ £ÀªÀÄÆ£É ºÁUÀÆ
9 7
¥ÁªÀÄð £ÀA§gÀ £ÀÄß ¸ÀA§AzsÀ¥ÀlÖ £ÀUÀgÀ ¸À¨sÉ jPÁqÀð gÀƫĤAzÀ ¥ÀqÉzÀÄ F ¥ÀvÀæ vÀ®Ä¦zÀ
¢£ÀUÀ¼À°è F PÀbÉÃjUÉ ºÁdgÀÄ¥Àr¸À®Ä PÉÆÃjzÉ







vÀªÀÄä «±Áé¹

Digitally signed by
SHANKARAPPA G NYAMAGOUD
Date : 30-05-2025 10:38:02

f¯Áè £ÉÆÃAzÀuÁ¢üPÁjUÀ¼ÀÄ ªÀÄvÀÄÛ
ªÀÄÄzÁæAPÀUÀ¼À G¥À DAiÀÄÄPÀÛgÀÄ
¨ÁUÀ®PÉÆÃmÉ


UÉ,
1) ²æà ²ªÁ£ÀAzÀ PÀĪÀiÁgÀ¥Àà ±Á¨Á¢ 2) ²æà PÀĪÀiÁgÀ¥Àà ¸ÉÆêÀÄ°AUÀ¥Àà ±Á¨Á¢, ¸Á:¨ÁUÀ®PÉÆÃmÉ,
ªÁqÀð £ÀA.10 , vÁ/f¯Éè:¨ÁUÀ®PÉÆÃmÉ, EªÀjUÉ
¥Àæw: 1) UËgÀªÁ¤évÀ ªÀiÁ£Àå ºÉZÀÄѪÀj ¹«í¯ï £ÁåAiÀiÁ¢üñÀgÀÄ ºÁUÀÆ eÉ.JªÀiï.J¥sï.¹£ÁåAiÀiÁ®AiÀÄ
¨ÁUÀ®PÉÆÃmÉ, gÀªÀjUÉ UËgÀªÀ¥ÀǪÀðPÀªÁV ªÀiÁ»wUÁV ¸À°è¹zÉ.
2) PÀbÉÃj PÀqÀvÀPÉÌ

- 11 -
HC-KAR
NC: 2026:KHC-D:16326
WP No. 105280 of 2025


CNR: KAHC020161522025



11. Except narrating the instance of execution of the said
partition deed, payment of stamp duty and calculation of
the market value of the property which is the subject
matter of the said partition, no reasons of any nature
whatsoever assigned by the Deputy Commissioner
justifying the imposition of ten times the amount of
penalty.

12. Section 39(1)(b) of the Karnataka Stamp Act, providing for
imposition of penalty reads as under:
“ 39. 1[Deputy Commissioner]1's power to stamp
instruments impounded.- (1) When the 1[Deputy
Commissioner]1 impounds any instrument under section
33, or receives any instrument sent to him under sub-
section (2) of section 37, not being an instrument
chargeable 1[with a duty not exceeding fifteen naye
paise]1 only or a mortgage of crop [Article 1[35]1 (a) of
the Schedule] 40 chargeable under clause (a) or (b) of
section 3 with a duty of twenty-five naye paise, he shall
adopt the following procedure:—
1. Substituted by Act 29 of 1962 w.e.f. 1.10.1962
(a) if he is of opinion that such instrument is duly
stamped, or is not chargeable with duty, he shall certify
by endorsement thereon that it is duly stamped, or that
it is not so chargeable, as the case may be;
(b) if he is of opinion that such instrument is
chargeable with duty and is not duly stamped he
shall require the payment of the proper duty or the
amount required to make up the same, together
with a penalty of five rupees; or if he thinks fit; an
amount not exceeding ten times the amount of the
proper duty or of the deficient portion thereof,

- 12 -
HC-KAR
NC: 2026:KHC-D:16326
WP No. 105280 of 2025


CNR: KAHC020161522025


whether such amount exceeds or falls short of five
rupees:
Provided that, when such instrument has been
impounded only because it has been written in
contravention of section 13 or section 14, the [Deputy
Commissioner] may, if he thinks fit, remit the whole
penalty prescribed by this section.”

13. Thus, the said provision provides a statutory power to the
Deputy Commissioner to impose a penalty not exceeding
ten times of the amount of proper duty, if he thinks fit.

14. Apex Court in the case of Seetharama Shetty (supra),
while dealing with the said power of the Deputy
Commissioner at paragraph 19, 20 and in particular,
paragraph 21.6, has held as under:
“19. 19. 19. A Three-Judge Bench of this Court in Trustees of HC 19.
Dhandha Trust v State of Madhya Pradesh, held that in case of
deficiency of Stamp Duty the Collector of Stamps cannot
impose ten times penalty under Section 40(1)(b) of the Indian
Stamp Act, 1899 (analogous to Section 39(1)(b) of the Act)
automatically or mechanically. The relevant paragraph reads
thus:
“22. The purpose of penalty generally is a
deterrence and not retribution. When a discretion is
given to a public authority, such public authority should
exercise such discretion reasonably and not in
oppressive manner. The responsibility to exercise the
discretion in reasonable manner lies more in cases
where discretion vested by the statute is unfettered.
Imposition of the extreme penalty i.e. ten times of the
duty or deficient portion thereof cannot be based on the
mere factum of evasion of duty. The reason such as
fraud or deceit in order to deprive the Revenue or

- 13 -
HC-KAR
NC: 2026:KHC-D:16326
WP No. 105280 of 2025


CNR: KAHC020161522025


undue enrichment are relevant factors to arrive at a
decision as to what should be the extent of penalty
under Section 40(1)(b).
(Emphasis supplied)
20. 20. 20. Further, in Petiti Subba Rao v. Anumala S. Narendra, 20.
this Court notes on the discretionary limits while interpreting
analogous provisions18 in the Indian Stamp Act,1899 that:
“6. The Collector has the power to require the
person concerned to pay the proper duty together with
a penalty amount which the Collector has to fix in
consideration of all aspects involved. The restriction
imposed on the Collector in imposing the penalty
amount is that under no circumstances the penalty
amount shall go beyond ten times the duty or the
deficient portion thereof. That is the farthest limit which
meant only in very extreme situations the penalty need
be imposed up to that limit. It is unnecessary for us to
say that the Collector is not required by law to impose
the maximum rate of penalty as a matter of course
whenever an impounded document is sent to him. He
has to take into account various aspects including the
financial position of the person concerned.”
(Emphasis supplied)
21.6. 21.6. 21.6. Section 39 of the Act is titled deputy commissioner’s 21.6.
power to stamp instruments impounded. This Section
provides the procedure to be followed by the Deputy
Commissioner/District Registrar while stamping instruments
that are impounded under Section 33 of the Act. As per
Section 39(1)(b) of the Act, the penalty may extend to ten
times the stamp duty payable; however, ten times is the
farthest limit which is meant only for very extreme situations.
Therefore, the Deputy Commissioner/District Registrar has
discretion to levy and collect commensurate penalty.”

15. Thus, imposition of penalty at ten times the amount is
permissible only in an extreme situation and upon
assigning reasons justifying such imposition. The

- 14 -
HC-KAR
NC: 2026:KHC-D:16326
WP No. 105280 of 2025


CNR: KAHC020161522025


impugned order, though termed as a notice at
Annexure-A, does not meet the requirement of the Deputy
Commissioner applying his mind to the relevant
circumstances before arriving at the conclusion that the
petitioner is required to pay ten times the amount of
penalty.

16. Accordingly, the impugned order at Annexure-A is quashed
to the extent of imposition of penalty. The matter is
remitted to the Deputy Commissioner, respondent No.1,
who shall re-determine the penalty, keeping in mind the
judgment of the Apex Court and the observations made
hereinabove.

17. Such determinations shall take place within 30 days from
the date of receipt of a certified copy of this order.

18. Accordingly, the petition is disposed of .
Sd/-
(M.G.S. KAMAL)
JUDGE


RHR/-
List No.: 1 Sl No.: 62