The Delhi High Court has ruled that the relinquishment of property rights by sisters in favour of their brother does not constitute a "gift" under the Indian Stamp Act, 1899. A division bench comprising Justices Anil Kshetarpal and Harish Vaidyanathan Shankar made this determination while hearing an appeal filed by a brother whose relinquishment deeds executed by his five sisters were impounded by district authorities for deficient stamp duty.
Case Background
The property in question was jointly owned by the parents of the appellant. Upon the father's death, the appellant inherited a 50% share. Following the mother's demise, the property devolved upon all siblings, including the five sisters. These sisters subsequently executed relinquishment deeds in favour of the appellant. However, the district authorities treated these deeds as gift deeds and impounded them due to insufficient stamp duty.
Court's Analysis
The Court observed that the relinquishment of rights by the sisters was a transaction among family members, where economic considerations were unlikely. The Court referred to the case of Chella Subbanna & Anr. v. Chella Balasubbareddi & Ors. (1945), where the Madras High Court held that a coparcener's relinquishment of interest in family property in favour of other coparceners does not amount to alienation but merely extinguishes their interest in favour of others. Applying this principle, the Court concluded that the relinquishment deeds in this case merely added to the appellant's existing title and did not constitute a gift.
Conclusion
The Delhi High Court quashed the impounding of the relinquishment deeds, directing the district authorities to release the documents. This judgment clarifies that intra-family relinquishments of property rights are not subject to stamp duty applicable to gift deeds under the Indian Stamp Act.
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