- 1 - HC-KAR NC: 2025:KHC:49648 WP No. 18620 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S VISHWAJITH SHETTY WRIT PETITION NO. 18620 OF 2021 (GM-CPC) BETWEEN: SRI A.S. KUMARASWAMY S/O SRI LATE SIDDAIAH AGED ABOUT 46 YEARS R/AT NO.225, 2ND FLOOR 1ST CROSS, 1ST MAIN K.H.LAYOUT, TAVAREKERE BENGALURU - 560 029. …PETITIONER (BY SRI A. SHRIKANT, ADV.) AND: 1. M/S DREAMLAND VENTURES P. LTD NO.85/1, SHIVASHAKTHI BUILDING 4TH FLOOR, K.H.ROAD, (DOUBLE ROAD) BENGLAURU - 560 027 REPTD BY AUTHORISED SIGNATORY SRI.BIRUDUGANTI SURESH BABU S/O BALARAJU PAN NO.AACCD1047P CIN NO.U55101 KA 2004PTC035045. 2. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY DEPARTMENT OF REVENUE VIDHANASOUDHA AMBEDKARVEEDHI BANGALORE - 560 001. …RESPONDENTS (BY SMT. RADHA RAMASWAMI, AGA FOR R-2, V/O DTD:27.11.2025 NOTICE TO R-1 IS D/W) Digitally signed by NANDINI M S Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:49648 WP No. 18620 of 2021 THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INIDA PRAYING TO QUASH THE ORDER PASSED BY THE PRINCIPAL CIVIL JUDGE BENGALURU RURAL DISTRICT BENGALURU IN O.S.NO.1326/2021 DTD.27.8.2021 VIDE ANNEXURE-A. THIS PETITION, COMING ON FOR PRELIMINAY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S VISHWAJITH SHETTY ORAL ORDER 1. Plaintiff 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 27.08.2021 passed in O.S.No.1326/2021 by the Court of Prl. Senior Civil Judge, Bengaluru Rural District, Bengaluru. 2. Heard the learned Counsel for the parties. 3. Petitioner herein has filed O.S.No.1326/2021 before the jurisdictional Civil Court seeking the relief of specific performance of the agreement for sale dated 19.12.2014. The Trial Court vide the order impugned has impounded the aforesaid agreement for sale dated 19.12.2014 and directed the petitioner to pay deficit stamp duty of Rs.1,37,350/- and penalty of Rs.13,73,500/- on the aforesaid agreement for sale. Aggrieved by the same, petitioner is before this Court. - 3 - HC-KAR NC: 2025:KHC:49648 WP No. 18620 of 2021 4. The Hon'ble Supreme Court in the case of SEETHARAMA SHETTY VS MONAPPA SHETTY - AIR 2024 SC 5327, has observed that if the court exercising its powers under Sections 33 & 34 of the Karnataka Stamp Act, 1957 (for short, 'the Act') finds the document/instrument in question is insufficiently stamped, such a document should be impounded and the same has to be forwarded to the jurisdictional District Registrar as provided under Section 39 of the Act, for the purpose of collecting the deficit stamp duty and penalty. In the said case, it is observed that levying of ten times penalty is not mandatory and it is the discretion of the competent authority. 5. The Trial Court in the present case having found the document is insufficiently stamped, has impounded the agreement for sale dated 19.12.2014, and has proceeded to determine the deficit stamp duty and penalty payable on the document and to the said extent, the order impugned needs to be set aside in view of the law laid down in Seetharama Shetty's, supra. Accordingly, the following order: - 4 - HC-KAR NC: 2025:KHC:49648 WP No. 18620 of 2021 6. The writ petition is allowed in part. The impugned order dated 27.08.2021 passed in O.S.No.1326/2021 by the Court of Prl. Senior Civil Judge, Bengaluru Rural District, Bengaluru, in so far as it relates to impounding the agreement for sale dated 19.12.2014, is confirmed, and it is set aside in so far as it directs the petitioner/plaintiff to pay deficit stamp duty of Rs.1,37,350/- and penalty of Rs.13,73,500/- on the aforesaid agreement for sale dated 19.12.2014. Inturn, the Trial Court is directed to forward the impounded document to the jurisdictional District Registrar for the purpose of collecting deficit stamp duty and penalty as provided under Section 39 of the Act. Sd/- (S VISHWAJITH SHETTY) JUDGE KK