Trust deed is to be treated as settlement deed & would be chargeable to stamp duty

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HIGH COURT OF MADRAS

P.N. George Wilson v. State

W.A. NO. 1197 OF 2012

M.P. NO. 1 OF 2012

JULY 17, 2012

 

It is to be noted that a settlement is an admixture of gift or partition or trust. In law, a family arrangement/settlement is accepted as a transfer of interest in the property in favour of an individual between whom the family arrangement or settlement is so made. Just because a deed/instrument answers the description of a ‘Trust Deed’, it does not cease to be a ‘settlement’ for the purpose of stamp duty, if it answers the description of ‘settlement’ also. As a matter of fact, a deed of trust/trust deed can also be a settlement deed.

In the present case, the Chief Controlling Authority, Inspector General of Registration, passed an order on 31-5-2008 among other things observing that as per the deed the property is transferred to the trust and held that the deed is settlement outside the family and hence stamp duty leviable as per section 58(a)(ii) and dismissed the revision upholding the orders of the District Registrar.

Looking at from any point of view, on an over all assessment of the facts and circumstances of the present case in a cumulative fashion, it is concluded and held that the trust deed dated 14-7-2003 in issue is chargeable to stamp duty as per article 58 (ii) of the 1899 Act treating it as a settlement deed as per section 2(24) of the 1899 Act.