Registration Authorities Must Collect Deficit Stamp Duty Before Returning Documents: Madras High Court

The Madras High Court has held that registration authorities cannot return documents found to be insufficiently stamped without first collecting the deficit stamp duty.

The Bench observed that under the Indian Stamp Act and Registration Rules, every document presented for registration must be examined to verify the adequacy of the stamp duty paid. 

The Court held that authorities must ensure full compliance before releasing documents, noting that proper stamp duty safeguards public revenue. Returning documents without collecting the deficit duty violates mandatory legal provisions and defeats the law’s purpose.

[Gita Power & Infrastructure Pvt. Ltd. v Inspector General of Registration & Ors]