Karnataka High Court
M/S Sundaram Bnp Paribas Home Finance ... vs Mr Raghavendra R on 8 December, 2025
Author: S Vishwajith Shetty
Bench: S Vishwajith Shetty
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WP No. 16149 of 2021
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 8TH DAY OF DECEMBER, 2025
BEFORE
THE HON'BLE MR. JUSTICE S VISHWAJITH SHETTY
WRIT PETITION NO. 16149 OF 2021 (GM-CPC)
BETWEEN:
BETWEEN:
M/S SUNDARAM BNP PARIBAS
HOME FINANCE LIMITED
HAVING ITS REGISTERED OFFICE AT
NO.46, WHITES ROAD
CHENNAI - 600 014
PRESENTLY KNOWN AS
M/S SUNDARAM HOME FINANCE LIMITED
HAVING ITS BRANCH OFICE AT NO.8
GROUND FLOOR, SAI PRABHU
SIRU PARK B-STREET SESHADRIPURAM
BANGALORE - 560 020
REPRESENTED BY IS AUTHORIZED OFFICER
S.M. KUTTAPPA.
...PETITIONER
Digitally signed (BY SMT. RADHA R, ADV.,)
by NANDINI M
S
Location: HIGH
AND:
COURT OF
KARNATAKA 1. MR. RAGHAVENDRA R
2. MRS. SWATHI S
BOTH ARE MAJOR
BOTH RESIDING AT
NO.99, KENCHAREDDY LAYOUT
CHANNASANDRA, WHITEFIELD
BANGALORE - 560 032.
3. STATE OF KARNATAKA
REPRESENTED BY ITS SECRETARY
DEPARTMENT OF STAMPS
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NC: 2025:KHC:51754
WP No. 16149 of 2021
HC-KAR
AND REGISTRATION
INSPECTOR GENERAL OF STAMPS
AND REGISTRATION
KANDAYA BHAVAN, K.G. ROAD
BANGALURU - 560 009.
...RESPONDENTS
(BY SMT. RADHA RAMASWAMY AGA FOR R-3;
NOTICE TO R-1 & R-2 ARE D/W)
THIS W.P. IS FILED UNDER ARTICLE 227 OF THE
CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE ORDER
DTD. 17.08.2021 PASSED BY THE LEARNED LXXXIV ADDITIONAL
CITY CIVIL AND SESSIONS COURT (CCH-85 COMMERCIAL
COURT) AT BENGALURU IN EXECUTION PETITION NO.3407/2019
UNDER ANNX-A.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN B
GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE S VISHWAJITH SHETTY
ORAL ORDER
1. Petitioner is before this Court in this writ petition filed under Article 227 of the Constitution of India, with a prayer to set aside the order dated 17.08.2021 passed in Execution Petition No.3407/2019 by the Court of LXXXIV Addl. City Civil & Sessions Judge (Commercial Court), Bengaluru.
2. Heard the learned Counsel for the parties.
3. Execution Petition No.3407/2019 was filed by the petitioner herein before the Commercial Court, Bengaluru, with a prayer to execute the arbitral award dated 08.09.2017 -3- NC: 2025:KHC:51754 WP No. 16149 of 2021 HC-KAR passed in ARC.No.AC/SBNPPHFL/11 of 2017 by the Arbitral Tribunal at Chennai, for a sum of Rs.31,09,308/- with interest at 18% per annum from the date of reference till realization and Rs.5,000/- towards arbitrator's fees.
4. Since the award was drawn on a stamp paper of Rs.150/-, having arrived at a conclusion that the award was deficitly stamped, the Executing Court exercising its powers under Sections 19 & 33 of the Karnataka Stamp Act, 1957 (for short, 'the Act'), had impounded the award and has directed the decree-holder to pay deficit stamp duty and ten times penalty as provided under Section 34 of the Act, to the tune of Rs.2,31,700/-. Aggrieved by the same, decree-holder is before this Court.
5. The award which is sought to be executed has been undisputedly passed by the Arbitral Tribunal at Chennai. Article 12 of the Tamil Nadu Stamp Act provides for payment of stamp duty on the award. The same reads as under:
Article Description of the Rate of stamp duty w.e.f.
No. Instrument 11.07.2001 12 Award The same duty as a Bottomry Bond for such amount. (Four rupees for every Rs.100 or part thereof upto Rs.1000 and -4- NC: 2025:KHC:51754 WP No. 16149 of 2021 HC-KAR twenty rupees for every Rs.500 or part thereof in excess of Rs.1000)
a) where the amount or Fifty rupees. value of the property to which the award relates, as set forth in such award, does not exceed Rs.1000/-
b) If it exceeds Rs.1000, Two rupees subject to a but does not exceed maximum of one hundred and Rs.5000. And for every fifty rupees.
additional Rs.1000 or part thereof in excess of Rs.5000.
6. Article 11(b) of the Act provides for payment of stamp duty on an award in State of Karnataka. Article 11(b)(i) of the Act states that where the amount or market value of the property as set forth in the award does not exceed Rupees fifty lakhs, then 3/4% of the amount or market value shall be paid as stamp duty on the award.
7. The award which is sought to be executed in Execution Petition No.3407/2019 is undisputedly drawn on a non-judicial stamp paper of Rs.150/-. Section 19 of the Act provides for payment of duty on certain instruments liable to increased duty in the State of Karnataka, which reads as under: -5-
NC: 2025:KHC:51754 WP No. 16149 of 2021 HC-KAR "19. Payment of duty on certain instruments liable to increased duty in the 1[State of Karnataka]- Where any instrument of the nature described in any article in the Schedule and relating to any property situate or to any matter or thing done or to be done in the 1[State of Karnataka]1 is executed out of the said State and subsequently received in the said State,--
(a) the amount of duty chargeable on such instrument shall be the amount of duty chargeable under the Schedule on a document of the like description executed in the 1[State of Karnataka]1 less the amount of duty, if any, already paid on such instrument in any other State in India,
(b) and in addition to the stamps, if any, already affixed thereto, such instrument shall be stamped with the stamps necessary for the payment of the duty chargeable on it under clause (a) of this section, in the same manner and at the same time and by the same persons as though such instrument were an instrument received in the 1[State of Karnataka]1 for the first time at the time when it became chargeable with the higher duty, and
(c) the provisions contained in clause (b) of the proviso to sub-section (3) of section 32 shall apply to such instrument as if such were an instrument executed or first executed out of India -6- NC: 2025:KHC:51754 WP No. 16149 of 2021 HC-KAR and first received in the 1[State of Karnataka]1 when it became chargeable to the higher duty aforesaid, but the provision contained in clause
(a) of the said proviso shall not apply thereto."
8. Since the award in question has not been properly stamped as provided under Article 11(b)(i) of the Act, in view of Section 19 of the Act, the deficit stamp duty is required to be made good.
9. Section 33 of the Act provides for examination and impounding of instruments. In the case on hand, the Executing Court having found that the award is insufficiently stamped, has exercised its powers under Section 33 of the Act.
10. Section 34 of the Act provides that instruments not duly stamped are inadmissible in evidence. The proviso to Section 34 of the Act provides that such documents can be admitted in evidence on payment of deficit stamp duty and penalty applicable. However, in the case on hand, proviso to Section 34 has not been invoked by the petitioner herein. -7-
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11. Section 37 of the Act provides for the procedure to be followed after the instrument is impounded, which reads as under:
"37. Instruments impounded how dealt with.-
(1) When the person impounding an instrument under section 33 has by law or consent of parties authority to receive evidence and admits such instrument in evidence upon payment of a penalty as provided by section 34 or of duty as provided by section 36, he shall send to the 1[Deputy Commissioner]1 an authenticated copy of such instrument, together with a certificate in writing, stating the amount of duty and penalty levied in respect thereof, and shall send such amount to the 1[Deputy Commissioner]1 or to such person as he may appoint in this behalf.
(2) In every other case, the person so impounding an instrument shall send it in original to the 1[Deputy Commissioner]"
12. From a reading of the aforesaid provision of law, it is apparent that the document/instrument which is impounded as provided under Section 33 of the Act, if received in evidence after payment of deficit stamp duty and penalty as provided under Section 34, then such document shall be forwarded to the Deputy Commissioner or to such other person as he may -8- NC: 2025:KHC:51754 WP No. 16149 of 2021 HC-KAR appoint in this behalf. In the event of the document being forwarded to the Deputy Commissioner or to such other persons as provided under sub-section (1) of Section 37 of the Act, then the Deputy Commissioner or the person to whom the document is forwarded, shall proceed with the said document as provided under Section 38 of the Act.
13. When the document is forwarded under Section 37(1) of the Act to the Deputy Commissioner or to the person appointed by him, the authority/court which has impounded the document/instrument shall collect the deficit stamp duty and penalty prescribed and shall send such amount to the Deputy Commissioner along with the copy of such document together with a certificate in writing.
14. In exercise of powers under Section 38 of the Act, the Deputy Commissioner may if he thinks fit, refund any portion of the penalty so collected under Section 37(1) of the Act. In respect of the instrument which are not covered under Section 37(1) of the Act, the same are required to be dealt as provided under Section 37(2) of the Act, which provides that the person -9- NC: 2025:KHC:51754 WP No. 16149 of 2021 HC-KAR so impounding an instrument shall send it in original to the Deputy Commissioner.
15. Section 39 of the Act provides for determination of stamp duty and penalty payable on such instrument which are forwarded to the Deputy Commissioner as provided under Section 37(2) of the Act.
16. In the case on hand, after impounding the award as provided under Section 33 of the Act, since the same has not been dealt with as provided under Section 34 of the Act, the Executing Court was required to comply with the requirement of Section 37(2) of the Act and forward the award to the Deputy Commissioner for the purpose of collecting stamp duty and penalty as provided under Section 39 of the Act. However, the Executing Court has failed to appreciate this aspect of the matter and has erred in directing the decree-holder to pay deficit stamp duty and penalty at Rs.2,31,700/-. Under the circumstances, I am of the opinion that the order impugned cannot be sustained. Accordingly, the following order:
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17. Writ petition is allowed. The impugned order dated 17.08.2021 passed in Execution Petition No.3407/2019 by the Court of LXXXIV Addl. City Civil & Sessions Judge (Commercial Court), Bengaluru, is set aside. The Executing Court is directed to forward the award to the jurisdictional Deputy Commissioner/Deputy Registrar as provided under Section 37(2) of the Act, for the purpose of collecting deficit stamp duty and penalty payable on the said document/instrument as provided under Section 39 of the Act.
Sd/-
(S VISHWAJITH SHETTY) JUDGE KK