M/S. Snn Estate Llp v. The State of Karnataka

e -e1e-eeeee e e NC:(2026:KHC:24203 WP(No.(13839(of(2026 IN(THE(HIGH(COURT(OF(KARNATAKA(AT(BENGALURU( THDATED(THIS(THE(29 (DAY(OF(APRIL,(2026( BEFORE( THE(HON'BLE(MR.(JUSTICE(SACHIN(SHANKAR(MAGADUM( WRIT(PETITION(NO.(13839(OF(2026((GM-ST/RN) BETWEEN:( M/S.,SNN,ESTATE,LLP, A,LIMITED,LIABILITY,PARTNERSHIP,FIRM, HAVING,ITS,OFFICE,AT,NO.35/B,,, 3RD,FLOOR,,POTENTIAL,HOUSE,,, 1ST,MAIN,ROAD,,3RD,PHASE,,, J.P,NAGAR,,BENGALURU,-,560,078,, REPRESENTED,BY,ITS,PARTNER,, SRI.,NITIN,AGARWAL,, S/O,SRI.,RAMESH,CHANDRA,AGARWAL,,, AGED,ABOUT,47,YEARS., …PETITIONER, (BY,SRI.,SUDHAKAR,G.V,,ADVOCATE), Digitallytisigned AND: by SHARADAVANI B Location:0High 1., THE,STATE,OF,KARNATAKA, Courttiof Karnataka BY,ITS,SECRETARY,,, THE,REVENUE,DEPARTMENT,,, M.S,BUILDING,,DR.,AMBEDKAR,VEEDHI,,, BENGALURU,-,560,001.,

2., INSPECTOR,GENERAL,OF,REGISTRATION, AND,COMMISSIONER,OF,STAMPS,,, KANDAAYA,BHAVAN,,8TH,FLOOR,, KG,ROAD,,BENGALURU,-,560,009., e -e2e-eeeee e e NC:(2026:KHC:24203 WP(No.(13839(of(2026

3., THE,DEPUTY,COMMISSIONER, (STAMPS),AND,DISTRICT,REGISTRAR,, SHIVAJINAGAR,REGISTRATION,DISTRICT,, AT,NO.,122/2,,'MONARCH,CHAMBERS',,, INFANTRY,ROAD,,BENGALURU,-,560,001.,

4., THE,SUB-REGISTRAR,, INDIRANAGAR,, OFFICE,AT,NO.,22,AND,44,,, BDA,SHOPPING,COMPLEX,,DOMLUR,,, BENGALURU,-,560,071., …RESPONDENTS, (BY,SMT.,NAVYA,SHEKAR,,AGA), , THIS, WP, IS, FILED, UNDER, ARTICLES, 226, AND, 227, OF, THE,CONSTITUTION,OF,INDIA,PRAYING,TO,SET-ASIDE/QUASH, THE, ORDER, DATED, 16/12/2025, BEARING, NO., DRO/SJN/RFD/335/2025-26/1924, PASSED, BY, THE, DISTRICT, REGISTRAR,, SHIVAJINAGAR, REGISTRATION, DISTRICT,, BENGALURU, THE, RESPONDENT, NO.3, HEREIN, (ANNEXURE-H), IN,SO,FAR,IS,CONCERNED,TO,DEDUCTION,OF,RS.1,87,500/-, (RUPEES,ONE,LAKH,EIGHTY,SEVEN,THOUSAND,FIVE,HUNDRED, ONLY), TOWARDS, STAMP, OF, DUTY,, RS.18,750/-, (RUPEES, EIGHTEEN, THOUSAND, SEVEN, HUNDRED, AND, FIFTY, ONLY), TOWARDS, CESS,, RS.5,625/-, (RUPEES, FIVE, THOUSAND, SIX, HUNDRED, AND, TWENTY, FIVE, ONLY), TOWARDS, DEDUCT, PAYMENTS,TO,LOCAL,BODIES,OF,THE,NET,PROCEEDS,OF,DUTY, LEVIED, BY, THEM, ON, TRANSFER, OF, PROPERTY, AND, RS.1,87,500/-,(RUPEES,ONE,LAKH,EIGHTY,SEVEN,THOUSAND, FIVE, HUNDRED, ONLY), TOWARDS, REGISTRATION, FEE, AND, ETC.,,

THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER

The petitioner is assailing the order dated 16.12.2025 passed by respondent no.3 as per Annexure-H in deducting 20% stamp duty and cess and 50% registration charges. Consequently, a mandamus is sought against respondents no.3 and 4 to refund an amount of Rs.1,87,500.00 towards stamp duty, Rs.18,750.00 towards cess, Rs.5,625.00 towards payment to local bodies and Rs.1,87,500.00 towards registration fee.

¶2Heard learned counsel for the petitioner and learned Additional Advocate General. Perused the material placed on record.

¶3The material on record unmistakably discloses that the petitioner, acting in furtherance of a proposed transaction for purchase of 375 square meters of transferable developmental rights (TDR) issued by the Commissioner, had proceeded to

prepare a draft sale deed. It is borne out from the pleadings that, in anticipation of completion of the transaction and acting upon the demand indicated by respondent No.4, the petitioner remitted substantial amounts through online mode towards stamp duty, registration charges, cess, and other incidental levies. However, owing to supervening circumstances, the contemplated transaction did not fructify and the document, though uploaded, was never presented for registration nor came to be registered in accordance with law. In that backdrop, the petitioner sought refund of the entire amounts so remitted. Astonishingly, respondent No.4, while processing the request, has effected deductions to the extent of 20% towards stamp duty and cess and 50% towards registration charges, thereby compelling the petitioner to invoke the extraordinary jurisdiction of this Court.

¶4This Court finds that the controversy raised in the present writ petition is no longer res integra. A Co-ordinate Bench of this Court, in W.P.No.19837/2019, while dealing with an identical factual matrix, has authoritatively held that the liability to pay stamp duty, registration fee and allied charges

arises only upon a document being duly presented and registered in accordance with the provisions of the Registration Act and the applicable stamp laws. It has been unequivocally held that where the transaction fails and the document is not registered, the State or its instrumentalities cannot unjustly retain any portion of the amount remitted towards such charges. The Co-ordinate Bench has further clarified that in such circumstances, the authorities are under a legal obligation to refund the entire amount without imposing any deductions, as retention of such amounts would be contrary to law and would amount to unjust enrichment.

¶5In the light of the aforesaid binding pronouncement, which squarely covers the issue involved in the present petition, this Court is of the considered view that the impugned order passed by respondent No.3 as per Annexure–H, insofar as it permits deductions from the amounts refundable to the petitioner, is patently illegal, arbitrary and unsustainable in law. The action of the respondents in effecting partial refund by imposing deductions, despite the admitted position that the document was never registered, runs contrary to the settled

legal position and cannot be countenanced. Consequently, the impugned order warrants interference and is liable to be quashed. Resultantly, appropriate directions are required to be issued to secure complete restitution in favour of the petitioner.

¶6For the foregoing reasons, this Court proceeds to pass the following: ORDER i. The writ petition is hereby allowed; ii. The impugned order dated 16.12.2025 passed by respondent No.3, as per Annexure–H, is quashed and set aside in its entirety; iii. Respondent Nos.3 and 4 are hereby directed to refund to the petitioner the entire amounts remitted, namely:

(a) Rs.1,87,500/- towards stamp duty;

(b) Rs.18,750/- towards cess;

(c) Rs.5,625/- towards payments made to local bodies; and

(d) Rs.1,87,500/- towards registration fees; without effecting any deduction whatsoever; iv. The aforesaid exercise of refund shall be completed within a period of four (4) weeks from the date of receipt of a certified copy of this order; v. In the event of default in complying with the aforesaid direction within the stipulated period, the amounts due shall carry interest at the prevailing lending rate of the State Bank of India, presently at

14.65% per annum, from the date of expiry of the said period till the date of actual realization; vi. No order as to costs. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE HDK List No.: 1 Sl No.: 26