In Brief
A landowner filed a civil suit claiming ownership and continuous possession of agricultural land, and the suit was settled by a compromise decree. When he sought to register the land in his name, the Collector of Stamps demanded stamp duty of ₹6,67,500 based on the compromise decree's treatment as a conveyance. The Supreme Court held that the compromise decree merely asserts the owner's pre-existing rights (from long continuous possession) and does not create new rights. Such decrees are exempt from compulsory registration under the Registration Act and are not chargeable with stamp duty under the Stamp Act. The Court set aside the authorities' orders and directed the revenue records be mutated in the appellant's favour without payment of stamp duty.
The lawyer headnote and full judgment text are available to registered users.