SRI. MAHESH KUMAR D v. RESIDING IN UNITED STATES OF AMERICA

CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR ORAL ORDER This petition by the plaintiff in O.S.No.1826/2021 is directed against the impugned order dated 27.10.2025 passed by the XXXI Addl. City Civil & Sessions Judge, Bengaluru C/c. V Addl. City Civil & Sessions Judge, Bengaluru, whereby the Trial Court came to the conclusion that the Agreement dated 29.06.2018 entered into between the petitioner and the respondent was not admissible in evidence and directed impounding of the said document to be sent to the Jurisdictional District Registrar for adjudication and to collect the duty and penalty on the said document.

#2. Heard learned counsel for the petitioner and learned counsel for the respondent and perused the material on record

#3. A perusal of the material on record will indicate that the petitioner – plaintiff instituted the aforesaid suit against the - 3 - NC: 2026:KHC:5987 WP No. 36661 of 2025 HC-KAR respondent – defendant for mandatory injunction, prohibitory injunction and other reliefs in relation to the suit schedule properties. The said suit is being contested by the respondent. During the course of evidence, the petitioner sought to mark a document styled as an Agreement dated 29.06.2018 entered into between the petitioner and the respondent which was executed on stamp paper in a sum of Rs.200. At that stage, the Trial Court examined the said document and came to the conclusion that the recitals in the document indicates that it is a lease agreement and stamp duty was payable under Article 30(2)(b) of the Karnataka Stamp Act and thereby held the said document was inadmissible in evidence and directed impounding of the said document for adjudication and to collect duty and penalty. Aggrieved by the impugned order passed by the Trial Court, the petitioner-plaintiff is before this Court by way of the present petition.

#4. Before adverting to the rival contentions, it would be necessary to extract the recitals contained in the aforesaid documents styled as Agreement dated 29.06.2018: “This Agreement entered on this the 29th day of June, 2018 at Bengaluru by and between: - 4 - NC: 2026:KHC:5987 WP No. 36661 of 2025 HC-KAR SRI MAHESH KUMAR D., S/o Late V Damodaram, aged about 47 years, residing at No.135, 3rd Main, 3rd Cross, AGB Layout, 2nd Stage, Mahalakshmipuram, Bengaluru- 560086, hereinafter referred to as the "FIRST PARTY", which term shall mean and include, wherever the context requires, his legal heirs, representatives, executors, successors and assigns, of the ONE PART; AND SRI SURESH D, S/o Late V Damodaram, aged about 48 years, residing at No.135, 3rd Main, 3rd Cross, AGB Layout, 2nd Stage, Mahalakshmipuram, Bengaluru- 560086, hereinafter referred to as the "SECOND PARTY", which term shall mean and include, wherever the context requires, his legal heirs, representatives, executors, successors and assigns, of the OTHER PART; Whereas the First Party and the Second Party are individually referred to as PARTY and collectives referred as PARTIES; Whereas the Parties herein are own brothers; the First Party Whereas possession of the house property No.135, situated on 3rd the absolute owner Main, 3rd Cross, AGB Layout, 2nd Stage, Mahalakhsmipuram, Bengaluru-560086 which is more fully described in the Schedule hereunder and hereinafter referred to as the SCHEDULE PROPERTY; Whereas the First Party from out of the housing loan availed from a Bank, has constructed a residential house - 5 - NC: 2026:KHC:5987 WP No. 36661 of 2025 HC-KAR consisting of ground, first and second floor on the Schedule Property; Whereas First Party by paying all taxes and statutory outgoings is in absolute and peaceful possession of the Schedule Property; Whereas the mother of the Parties is at present living with the First Party and the First Party is fully taking care of her in all manners and the Second Party is residing in the first floor of the Schedule Property and is not paying any rent or expense to the First Party; Whereas the Second Party has expressed his intention of moving out from the first floor of the house in which he is staying and sought for a financial assistance from the First Party and the First Party has agreed to provide the financial assistance to the Second Party on the terms and conditions agreed to hereunder and accordingly the Parties have entered into this Agreement. NOW THIS AGREEMENT WITNESSETH AS FOLLOWS

#1. The First Party shall pay Rs.18,00,000/ - (Rupees Eighteen Lakhs only) to the Second Party as under: i) Rs. 10,00,000/- (Rupees Ten Lakhs only) by way of Cheque bearing No.391221 dated 30- 6-2018; ii) Rs. 7,00,000/- (Rupees Seven Lakhs only) on 28-12-2018; and - 6 - NC: 2026:KHC:5987 WP No. 36661 of 2025 HC-KAR iii) Rs. 1,00,000/- (Rupees One Lakh only) on 28-6-2020 or at the time of vacating and handing over the vacant physical possession of the house which is in occupation of the Second Party

#2. The Second Party upon receipt of Rs.10,00,000/ - from the First Party shall immediately start construction of a house on the site situated at Abbigere, Bengaluru.

#3. It has been specifically agreed by the Second Party that he is entitled to receive Rs.1,00,000/- (Rupee One Lakh) from the First Party only upon handing over of the vacant physical possession of the first floor of the house on the Schedule Property, which will be either on 28-6-2020 or six months of extended period from 28-6-2020 to the First Party or his Brother and GPA Holder Sri Sreenivas D.

#4. The Second Party hereby acknowledges that the financial assistance extended by the First Party to him is out of natural love and affection and not out of any legal obligation and he further declares and confirms that the First Party as such is not liable to pay any further amount to the Second Party.

#5. The Second Party during his stay in the First Floor of the Schedule Property shall use the same for his residential purpose only, shall not sublet the same to any third party and shall not use the same for any unlawful activities.

#6. The Second Party shall not carry out any structural alterations and repairs that would damage the building - 7 - NC: 2026:KHC:5987 WP No. 36661 of 2025 HC-KAR without prior written consent from the First Party, maintain the house in a proper manner and hand over the same to the First Party or to his GPA Holder Mr. Sreenivas D in a habitable condition.

#7. The breach of clause Nos.5 or 6 mentioned above by the Second Party shall be the cause for the First Party to initiate appropriate legal proceedings against him to evict from the first floor of the house.

#8. The Second Party, for any reason, shall not indulge in seeking further time to vacate and handover the house in his occupation and in such an event he is liable to be evicted lawfully by the First Party or his GPA Holder.

#9. The First Party has executed a General Power of Attorney in favour of his Brother Sri Sreenivas D on 27-6- 2018 to execute the acts, deeds and things mentioned therein and has brought the same to the notice of the Second Party and the Second Party acknowledges the notice of the same.

#10. The Parties have consented and requested Mr. Sreenivas D to affix his signature on this Agreement and accordingly Mr. Sreenivas D has affixed his signature to this Agreement as one of the Witnesses. SCHEDULE PROPERTY All that piece and parcel of residential immovable property bearing No.135, situated in the Private Layout formed by the Athmeeya Geleyara Balaga Gruha Nirmana Sahakara Sangha Limited at 2nd Stage, Mahalakshmi Layout, - 8 - NC: 2026:KHC:5987 WP No. 36661 of 2025 HC-KAR Jarabandekaval, Bengaluru, measuring East to West 26 feet and North to South 39 feet in all measuring 1014 square feet together with houses constructed on the ground, first and second floors and bounded on : East by West by North by - - - 1st stage AGBGs Land/ Site; Site No.136; Site No.134;and South by - Road IN WITNESS WHEREOF, the Parties have affixed their respective signatures to this Agreement on the day, month and year, first hereinabove mentioned.”

#5. It is also necessary to extract the definition of the ‘lease’ under Section 105 of the Transfer of Property Act, which reads as under: “A lease of immoveable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms. Lessor, lessee, premium and rent defined.—The transferor is called the lessor, the transferee is called the lessee, the price is called the premium, and the money, - 9 - NC: 2026:KHC:5987 WP No. 36661 of 2025 HC-KAR share, service or other thing to be so rendered is called the rent.”

#6. It is also relevant to extract the definition of lease under Section 2(1)(l) of the Karnataka Stamp Act, which reads as under: "lease" means a lease of [immovable or movable property or both] [Substituted by Act 9 of 1997 w.e.f.

1.4.1997], and includes also,- (i)a patta; (ii)a kabuliyat or other undertaking in writing not being a counterpart or a lease to cultivate, occupy, or pay or deliver rent for, immovable property; (iii)any instrument by which tolls of any description are let; (iv)any writing on an application for a lease intended to signify that the application is granted”

#7. A perusal of the recitals contained in the aforesaid Agreement coupled with the provisions contained under Section 105 of the Transfer of Property Act and Section 2(1)(l) of the Karnataka Stamp Act, is sufficient to come to the conclusion that the said document was not a lease deed / rental agreement under which the respondent had agreed to take property on lease from - 10 - NC: 2026:KHC:5987 WP No. 36661 of 2025 HC-KAR the petitioner; interestingly, no rent, premium, advance, etc., is said to be payable by the respondent to the petitioner under the said agreement and consequently, the respondent cannot be construed or treated as a lessee under the petitioner-lessor nor can the agreement be construed or treated as a lease deed as wrongly held by the Trial Court.

#8. Under these circumstances, I am of the view that the impugned order passed by the Trial Court holding that the document dated 29.06.2018 is a Lease Deed deserves to be set aside. The next question that arises for consideration is as to the stamp duty payable on the said document. In this context, it is pertinent to note that the said Agreement dated 29.06.2018 is executed on a stamp paper in a value of Rs.200/-, which is sufficient in terms of Article 5 of the Karnataka Stamp Act and consequently, no further duty or penalty is payable by the petitioner on the said document.

#9. In the result, I pass the following: ORDER (i) The petition is hereby allowed. - 11 - NC: 2026:KHC:5987 WP No. 36661 of 2025 HC-KAR (ii) The impugned order dated 27.10.2025 passed in O.S.No.1826/2021 by the XXXI Addl. City Civil & Sessions Judge, Bengaluru C/c. V Addl. City Civil & Sessions Judge, Bengaluru, is hereby set aside. (iii) The Trial Court is directed to mark the said document in evidence without insisting on payment of duty and penalty and proceed further in the matter. Sd/- (S.R.KRISHNA KUMAR) JUDGE SV List No.: 2 Sl No.: 41