Sabyasachi Bhattacharyya,J. - (1.)The common petitioner in the two writ applications have challenged the assessment of penalty regarding two agreements for sale, both dated May 25, 2020, entered into by the petitioner, respectively with M/s Chetki Properties Pvt. Ltd. (In WPO No.108 of 2020) and Auckland Properties Pvt. Ltd. (in WPO No.109 of 2018) by the Collector of Stamp Revenue, Kolkata. Pursuant to arbitration clauses in the said instruments, the matters were referred to an Arbitrator. The documents were produced before the Arbitrator, who impounded the documents and sent those to the Collector for assessment of stamp duty. The Collector assessed the stamp duty and imposed penalty at rates much below the maximum leviable amount as per Section 35 of the Indian Stamp Act, 1899 that is, ten times the stamp duty. In the document between the petitioner and M/s Chetki Properties Pvt. Ltd., the stamp duty was assessed at Rs.23,69,640/- and penalty at Rs.1,30,360/-. In the agreement between the petitioner and Auckland Properties Pvt. Ltd., the stamp duty was assessed at Rs. 32,81,040/- and penalty at Rs.2,18,960/-.
(2.)The petitioner is a party to the said arbitration proceedings and challenges the levy of penalty at less than the maximum amount permissible under Section 35 of Stamp Act.
(3.)Learned counsel appearing for the petitioner contends that the Arbitrator having impounded the agreements and sent the documents to the Collector for assessment of stamp duty, the Collector was bound by Section 35, proviso (a) to impose penalty of a sum equivalent to ten times such duty. It is contended that the reference was not under Section 38 of the Stamp Act. As such, the Collector did not have the liberty, granted under Section 40(b) of the said Act, to fix penalty at an amount less than the maximum rate provided in law.