SC exempts woman from paying stamp duty for flat received in matrimonial dispute

The Supreme Court has exempted a woman from the payment of stamp duty under the Registration Act, 1908, for a flat in Mumbai she received as part of a compromise with her husband in a matrimonial dispute.

“Manifestly, the flat in question is the subject matter of the compromise and as a consequence, it forms part of the proceedings before this court. Hence, the exclusion provided by Section 17(2)(vi) of the Registration Act, 1908, will apply and the registration of the flat in question in the exclusive name of the respondent-wife would be exempted from the payment of stamp duty,” a Bench led by Justice Vikram Nath said in its February 28 order.

The Bench – which also included Justice Sandeep Mehta -- directed the Sub-Registrar concerned to register the flat in the exclusive name of the wife as its owner.

During the pendency of the petition filed by the husband seeking transfer of the divorce case filed by the wife, the couple agreed to mutually dissolve their marriage in mediation proceedings.

A dispute arose between the parties over a flat in Mumbai as both claimed to have contributed towards its purchase.

During the mediation proceedings, a settlement was reached and the husband agreed to relinquish his rights over the flat in favour of the wife after she agreed to forgo her claim for alimony.

Using its powers under Article 142 of the Constitution, the Bench dissolved the marriage by mutual consent.

Since the flat was the subject matter of the compromise and formed part of the proceedings before the court, the transfer would be exempt from stamp duty, it said.