In a recent court decision, Mulakh Raj Dua's request for a full refund on stamp duty was denied. The Delhi High Court decided on December 9, 2025, that keeping 10% of the refund was allowed.
Mulakh Raj Dua took part in a property auction by Bank of Baroda in Shahdara, Delhi, on January 9, 2019. He bought stamps worth ₹23,58,000 for the sale agreement and paid a registration fee of ₹3,93,136. But, a stop order from the Debt Recovery Tribunal (DRT) on January 14, 2019, paused the sale.
"The BoB was stopped from transferring, selling, or creating any third-party interest in the said property."
After the auction was canceled, the DRT told the bank to return the auction amount with 10% interest. Mulakh asked for a refund of the stamp duty and registration fee on March 23, 2023. He got back ₹3,93,100 for the registration fee, but the stamp duty refund took longer.
On May 7, 2024, the court told the Collector to process Mulakh's refund. He received ₹21,22,000 after a 10% deduction. Mulakh argued for a full refund with 6% interest, pointing to a Supreme Court case, but his request was turned down on October 23, 2024.
Mulakh's lawyer mentioned the Rajeev Nohwar case, where the Supreme Court allowed a full refund with interest. However, the court pointed out differences between the Maharashtra Stamp Act and the Indian Stamp Act, which is used in Delhi.
"Section 54 of the Indian Stamp Act, 1899... allows the Collector of Stamps to keep 10%."
The Delhi High Court, led by Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela, rejected Mulakh's appeal. They agreed with the 10% deduction according to the Indian Stamp Act, 1899.
"The appeal is, therefore, hereby dismissed."
