IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN WEDNESDAY, THE 30TH JULY, 2008 / 8TH SRAVANA, 1930 O.P.No. 21154 of 1998 (R) PETITIONERS: ------------------ 1. P.M.VASANTH KUMAR, VARUNA ENTERPRISES, ROOM NO.2, PANCHAYATH SHOPPING COMPLEX, MULLASSERY 680 649. 2. V.K.MOHAN, ROOM NO.1, GENTS BEAUTY PARLOUR, PANCHAYATH SHOPPING COMPLEX, MULLASSERY 680 649. 3. P.V.KURIAPPAN, ROOM NO.5, MULLASSERY SHOPPING COMPLEX, MUYLLASSERY 680 649. BY ADV. SRI.N.J.JOHNSON RESPONDENTS: ------------------ 1. THE SECRETARY, MULLASSERY GRAMA PANCHAYATH, MULLASSERY 680 649. 2. THE SECRETARY, MINISTRY OF LOCAL ADMINISTRATION, GOVERNMENT OF KERALA, THIRUVANANTHAPURAM. BY ADV. SRI.P.K.ASHOKAN THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 30/07/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ORDER ON CMP NO.37292/1998 IN OP NO.21154/1998 R Closed 30th July, 2008. sd/- C.N.Ramachandran Nair,Judge. Sd/-V.K.Mohanan, Judge. APPENDIX (OP No. 21154 OF 1998) PETITIONER'S EXHIBITS: Ext.P1: Copy of Notice No.A2.145/93 dtd.5.10.1998 by the first respondent. Ext.P2: Copy of English translation of Ext.P2. -True Copy- P.A.to Judge. C.N.RAMACHANDRAN NAIR & V.K.MOHANAN, JJ. --------------------------------------------- O.P.No. 21154 of 1998 R --------------------------------------------- Dated this the 30th day of July, 2008 J U D G M E N T Ramachandran Nair,J: The question raised is whether the Municipality was justified in demanding the execution of agreement in a stamp paper applicable to lease deeds. We find that the issue raised is covered by a Division Bench judgment of this Court in O.P.No.18225 of 1997 and connected cases decided on 15th December, 1999 wherein this Court had held that transaction between the Municipality and the alloottee of the shop room is a lease and not licence. More over, Note to Article 33 of the Schedule to the Kerala Stamp Act specifically states that allotment of rooms by the Municipalities will fall within the description of lease and not licence for the purpose of stamp duty. We therefore dismiss the original petition upholding the demand of stamp duty at the rate applicable to lease by the Municipality. If the petitioner has not executed the agreement, the petitioner shall execute the agreement on OP NO.21154 of 1998 :-2-: applicable stamp paper failing which the matter will be adjudicated for levy of penalty. C.N.RAMACHANDRAN NAIR, Judge V.K.MOHANAN, Judge MBS/ OP NO.21154 of 1998 :-3-: C.N.RAMACHANDRAN NAIR & V.K.MOHANAN, JJ. -------------------------------------------- O.P.NO.21154 OF 1998 -------------------------------------------- J U D G M E N T DATED:30-7-2008 OP NO.21154 of 1998 :-4-: