SC exempts woman from stamp duty on flat in divorce case

A Bench led by Justice Vikram Nath, along with Justice Sandeep Mehta, held that the exemption applied because the property transfer was a direct consequence of a court-approved compromise between the couple.

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

The court directed the Sub-Registrar to register the flat in the wife’s exclusive name as its rightful owner. The case arose from a matrimonial dispute, where the husband had filed a petition seeking a transfer of the divorce case filed by his wife. During the mediation process, the couple agreed to mutually dissolve their marriage and reached a settlement over the ownership of a flat in Mumbai, which both had contributed to purchasing.

As per the mediation settlement, the husband agreed to relinquish his rights over the property in favour of his wife in exchange for her waiving her alimony claim.

The Supreme Court dissolved the marriage under Article 142 of the Constitution, which allows it to pass orders for complete justice in a case. It further ruled that since the flat was part of the court settlement, its transfer was exempt from stamp duty under Section 17(2)(vi) of the Registration Act, 1908.