Authority: High Court of Judicature at Bombay

Order Date: 12 October 2026

Case Overview

  • Petitioners: Ashok D. Goyal (proprietor of Ashoka Developers) and M/s Devyog Builders Private Limited (through Director D.R. Goyal).
  • Respondents: State of Maharashtra, Sub‑Registrar Thane‑4, Joint District Registrar, Class‑I and Collector of Stamps, Thane City.
  • Core dispute: State authorities debit‑frozen the petitioners’ bank accounts and withdrew amounts alleged as deficit stamp duty without prior notice or hearing, allegedly violating natural justice.
  • Chronology: Agreements executed on 11‑06‑2008 (Devyog Builders) and 26‑06‑2008 (Ashok Goyal) with stamp duty paid as per Sub‑Registrar demand. No communication from authorities for ~7 years.
  • On 10‑02‑2015 the Sub‑Registrar issued notices alleging deficit stamp duty; petitioners replied on 23‑02‑2015 asserting duty had already been paid.
  • In 2017 the petitioners’ banks informed them that accounts were debit‑frozen for the amounts mentioned in the 2015 notices.
  • Subsequently, amounts were debited: Rs 17,14,323 from Ashok Goyal’s account and Rs 13,89,190 from Devyog Builders’ account; the freezes were later lifted.
  • Petitioners amended the writ petitions to seek refund of the debited amounts and challenged the arbitrariness of the recovery process.
  • Respondents relied on Revenue Recovery Certificates issued under Section 46 of the Maharashtra Stamp Act 1958, dated 14‑03‑2014, asserting that deficit stamp duty had been calculated.
  • The Court observed that the Revenue Recovery Certificates were issued before the 10‑02‑2015 notices and before the petitioners’ replies, making the respondents’ claim untenable and a breach of natural justice.

Final Outcome

  • The Court allowed both writ petitions (prayer clauses (b) and (c‑1)).
  • Revenue Recovery Certificates dated 14‑03‑2014 are quashed and set aside.
  • Respondents directed to refund the specific amounts:
  • Rs 17,14,323 to Ashok D. Goyal (WP 563 of 2018).
  • Rs 13,89,190 to Devyog Builders Private Limited (WP 12923 of 2017).
  • Refund to be made within two weeks from the order date.
  • Respondents may proceed with further action under the 10‑02‑2015 notices only after granting the petitioners a reasonable hearing and complying with principles of natural justice.
  • Respondents must furnish all documents on which they base the claim of deficit stamp duty.
  • Both writ petitions are disposed of.

Topics: Stamp Duty, Natural Justice, Bank Account Freeze