Acquiring Property Through A Compromise Decree In Divorce Case- Understanding Stamp Duty Implication

Introduction

In a recent landmark judgment of Arun Rameshchand Arya vs. Parul Singh¹, the Supreme Court of India exempted a wife from paying stamp duty for a flat she acquired as part of a compromise in a divorce case. This decision has significant implications for property transfers during divorce settlements and provides clarity on the application of stamp duty in such cases.

Background of the Case

The case involved a matrimonial dispute where the wife received a flat as part of a compromise agreement with her husband. The title in respect of the flat got transferred in the name of wife. The question before the court was whether the transfer of the flat required the payment of stamp duty under the Indian Stamp Act, 1899. The Supreme Court ruled that no stamp duty was payable in this scenario, setting a precedent for similar cases in the future.