Compromise Decree Does Not Require Registration or Stamp Duty: SC

The Supreme Court ruled that a compromise decree merely acknowledges existing rights without creating or transferring new ones, exempted from registration and stamp duty.

The case involved Mukesh, who acquired land in Madhya Pradesh through a compromise decree after a civil suit. The Collector of Stamps initially imposed a stamp duty of ₹6,67,500, which was upheld by MP High Court.

The SC, referencing Section 3 of the Indian Stamp Act, and Section 17(2)(vi) of the Registration Act, overturned the HC’s decision and directed authorities to update revenue records in Mukesh’s favor without registration or stamp duty.