The Supreme Court of India has exempted a wife from paying stamp duty on a flat she received as part of a divorce settlement. The bench, comprising Justice Vikram Nath and Justice Sandeep Mehta, adjudicated the case where the husband sought the transfer of a divorce petition while both parties reached a mutual settlement.
Background of the Case
The case involved a matrimonial dispute between Arun Rameshchand Arya and Parul Singh. The husband had initially filed a petition seeking the transfer of the divorce case from the Family Court in Bandra, Mumbai, to a competent court in Delhi. However, during the proceedings, the couple agreed to settle their dispute through mediation.
During the mediation, a key point of contention was the ownership of a flat located in Green Hills Co-operative Housing Society Ltd., Godrej Hill, Kalyan (West). Both parties claimed to have contributed to its purchase. Eventually, they reached a settlement where the husband agreed to relinquish his rights over the property in favor of the wife. In return, the wife agreed to waive any claims for alimony.
The primary legal question before the Court was whether the wife should be required to pay stamp duty to register the property in her name. The Court examined the provisions of the Registration Act, 1908, specifically Section 17(2)(vi), which provides exemptions for certain property transfers made through court orders.
Quoting from the judgment, the Court observed:
"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."
The Court also relied on the precedent set in Mukesh v. The State of Madhya Pradesh & Anr. (2024), which clarified that if an immovable property is part of a compromise decree, it qualifies for exemption under Section 17(2)(vi).
Based on this legal interpretation, the Supreme Court ruled in favor of the wife and directed the Sub-Registrar to register the property in her name without requiring stamp duty payment. The Court further confirmed the dissolution of the marriage under Article 142 of the Constitution of India.
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In its concluding remarks, the Court stated:
"Resultantly, we direct the Sub-Registrar concerned to register the flat-in-question in the exclusive name of respondent-Parul Singh as its owner."
This ruling sets a crucial precedent for matrimonial settlements involving property disputes. It clarifies that when immovable property is part of a court-mediated divorce settlement, it may be exempt from stamp duty under the Registration Act. This judgment ensures financial relief for women receiving property in divorce settlements, reinforcing legal clarity in similar cases.
Final Order
The Supreme Court disposed of the transfer petition, dissolved the marriage by mutual consent, and ordered the flat’s registration in the wife's name without any financial burden of stamp duty.
This landmark judgment serves as a guiding principle for future matrimonial property disputes, ensuring fair legal treatment for spouses in divorce settlements.
Case Title: ARUN RAMESHCHAND ARYA VERSUS PARUL SINGH
