Presenter Cannot Avoid Stamp Duty By Withdrawing Document Before Registration: Madras High Court

The Madras High Court held that once an instrument is executed and presented for registration, the presenter cannot withdraw it solely to avoid paying the deficit stamp duty. The Court emphasised that under the Indian Stamp Act, 1899 and the Registration Rules, the registering authority is duty-bound to impound an under-stamped document, send it to the Collector for determination of duty, and only after recovery of the deficit can the presenter opt to proceed with registration or seek return of the document. The key message: non-registration does not absolve the duty to pay correct stamp duty once the instrument has been executed and presented. This reinforces the fiscal regime around property documentation and cautions parties from trying to circumvent duties by mere withdrawal of documents.