Rajasthan High Court – Jaipur
M/S Maheshwari Filling vs State Of Raj And Anr on 25 February, 2025
[2025:RJ-JP:6768-DB]
HIGH COURT OF JUDICATURE FOR RAJASTHAN
BENCH AT JAIPUR
D.B. Civil Writ Petition No.9387/2015
M/s. Maheshwari Filling Statiopn Kharwa through Deen Dayal
Son of Jay Kishan Maheshwari, resident of Kharwa, Tehsil
Masuda, District Ajmer (Raj.).
----Petitioner
Versus
1. State of Rajasthan, through Sub-Registrar, Masuda, District
Ajmer.
----Respondent
2. M/s. Indian Oil Corporation Ltd., Vaishali Nagar, Jaipur (Raj.)
—-Performa Respondent
For Petitioner(s) : Mr.Buddhi Prakash Sharma, Adv.
For Respondent(s) : Mr.Anant Kasliwal, Senior Advocate
assisted by Mr.Shashank Kasliwal,
Adv., Ms.Charu Pareek, Adv.,
Mr.Raghav Krishnatri, Adv. &
Ms.Divisha Misra, Adv.
Mr.Sandeep Taneja, AAG.
HON'BLE MR. JUSTICE AVNEESH JHINGAN
HON’BLE MR. JUSTICE PRAMIL KUMAR MATHUR
Order
RESERVED ON :: :: :: 10/02/2025
PRONOUNCED ON :: :: :: 25/02/2025
PER:- AVNEESH JHINGAN, J
1. This writ petition is filed seeking quashing of order dated
22.04.2015 passed by the Rajasthan Tax Board, Ajmer (for short
‘the Board’) accepting the revision filed by the State.
2. The brief facts are that on 11.03.2002 respondent No.2 M/s
Indian Oil Corporation Limited executed lease deed in favour of
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the petitioner. The lease deed was registered by the Sub Registrar
Masuda, District Ajmer. An objection was raised by the audit that
the valuation of the property was Rs.38,41,992/- and the requisite
stamp duty was not paid. Reference made under Section 51 of the
Rajasthan Stamp Act, 1998 (for short ‘the 1998 Act’) was
dismissed by the Collector vide order dated 29.12.2009. The
revision filed by the State against the order of the Collector was
accepted by the Board vide order dated 29.12.2009.
3. The dispute is with regard to interpretation of the condition
in the lease deed that as to whether the lease deed was executed
only for a period of fifteen years for monthly rent of Rs.7500/-.
The relevant condition of the lease deed is quoted :-
“PROVIDED ALWAYS AND IT IS AGREED
AND DECLARED that at the expiration or
the said term of 10 years this lease will be
automatically and without any further act
or any of the parties hereto be renewed for
further term of 10 years of 10 years from
the expiration of last mentioned term give
to the Lessors one calender month’s
previous notice of their intention not to
take any renewed lease. The renewed
lease will be on the same rents,
convenants, conditions and agreements
including the present convenant for
renewal.”
4. Learned counsel for the petitioner contends that the lease
was only for fifteen years and the Collector (Stamps) rightly
dismissed the reference. Reliance is placed upon the decisions of
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Supreme Court in (i) State of U.P. and Ors. Vs. Lalji Tandon
(Dead) reported in [(2004)1 SCC 1], (ii) Hardesh Ores Pvt.
Ltd. Vs. Hede and Company reported in [(2007)5 SCC 614]
and (iii) M/s. Essar Oil Limited Vs. State of Rajasthan & Ors.
in S.B. Civil Writ Petition No.14406/2017 of this Court
decided on 04.09.2017.
5. As per contra, there is automatic renewal of the lease and
no act was to be done by the parties for further renewal.
6. Article 23 (i) and 35 (a) of the Second Schedule to the
Rajasthan Stamp Law (Adaptation) Act, 1952 (for short ‘the 1952
Act’) in force at the relevant time are reproduced:-
Description of Instrument Proper Stamp Duty
23. Conveyance as defined by
section 2 (10):
(i) if relating to immovable Eleven percent of the market
property. value of the property.
(ii) if relating to movable Half (0.5) percent of the market
property. value of the property.
35. Lease–including and under
lease, or sub lease and any
agreement to let or sub let–
(a) Where, by such lease, the
rent is fixed and no premium is
paid or delivered–
(i) Where the lease purports to The same duty as on a Bond
be a term for less than one (No.15) for the whole amount
year. payable under such lease.
(ii) Where the lease purports to The same duty as on a
be for a term of not less than conveyance (No.23) for a
one year but not more than consideration equal to the
twenty years. amount or value of the average
rent of two years.
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(iii) Where the lease purports to The same duty as on a
be for a term in excess of conveyance (No.23) on the
twenty years or in perpetuity or market value of the property
where the term is not which is the subject matter of
mentioned. the lease.
7. Schedule stipulates that in case the lease deed is for more
than twenty years the stamp duty shall be same as on conveyance
and is to be calculated on the market value of the property.
8. The lease deed initially was for fifteen years, commencing
from 11th March, 2002 and the Collector (Stamps) relying upon
this dismissed the reference. There cannot be quarrel with the
proposition that the document has to be read as a whole and the
term of renewal of lease deed cannot be ignored. The condition of
renewal reproduced above appears to have some typographical
mistake, be that as it may, has to be given an interpretation. As
per the condition of renewal, on expiry of the term without any
further act of the parties the deed shall be automatically extended
for ten years. The option is only with the lessee to put the lessor
to one month notice before the expiry of term that lessee does not
intent to renew the lease. The renewal is to be on the same rent,
covenants, conditions and agreement including the term of
renewal as agreed between the parties initially. In other words, no
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fresh lease deed was to be executed. The renewal was automatic
requiring no act on part of either of the party.
9. The condition of renewal in fact is a lock-in period for the
lessee. There is no right with lessor for not to renew the lease.
The lessee has one opportunity at end of every term to give one
month notice prior to the expiry of the initial term or extended
term of the lease, for not intending to renew the lease.
10. The findings of Collector (Stamps) that:- (i) the lease was
for fifteen years; (ii) prior permission of the lessor was required
for renewal; (iii) that renewal of the lease would be with the
consent of both the parties and that to on the new terms and
conditions, are against the terms & conditions of lease deed. On
wrong factual aspects it was concluded that in case the parties
decide to renew lease deed the stamp duty would be paid on the
new lease deed. As per the language of renewal term, no act is to
be done by the parties, renewal is automatic and on the same
terms and conditions.
11. The case law relied upon does not enhance the case of the
petitioner. In the case of Lalji Tandon (Dead) (supra) the issue
dealt with was as to whether as per the terms and conditions of
agreement the renewal was to be made once only. It was held that
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in view of incorporation of the renewal clause in the lease deed,
renewal could not have been denied.
12. In Hardesh Ores Pvt. Ltd. (supra) the Court was dealing
with the issue as to whether in the garb of prayer of injunction,
the relief of specific performance could be claimed for saving
limitation.
13. In M/s. Essar Oil Limited (supra) the earlier decision of
this Court in Essar Oil Ltd & Anr. Vs. DIG Registration and
Collector (Stamps) & Anr in S.B. CWP No.11420/2019
decided on 11.05.2017 was relied upon. The court came to the
conclusion that the lease period was of nineteen years eleven
months and though there was condition of automatic renewal but
either of the party was at liberty to refuse renewal by giving three
months notice.
14. In case in hand, there is automatic renewal and that to
without any act of the parties i.e. there is no need for fresh lease
deed. The terms and conditions are to remain same, including the
renewal clause. The lessor has no option for not renewing the
lease. On reading of lease deed as a whole the picture emerges
that for renewal no act is to be done and lease deed is for more
than twenty years.
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15. The order of the Board quashing the order of the Collector
dismissing the reference is upheld. The writ petition is dismissed.
(PRAMIL KUMAR MATHUR),J (AVNEESH JHINGAN), J
Himanshu Soni/reserve
Reportable:- Yes
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