Orissa High Court Orders Cash Refund of Unutilized Stamp Duty for Elderly Petitioner

In a landmark decision, the court quashes the Collector's directive for e-stamp certificates, emphasizing practical realities over technicalities.

News Report:  

The Orissa High Court, Justice A.C. Behera mandated the refund of Rs.1,44,200 in cash to Jagannath Nayak, a 90-year-old petitioner, instead of providing an e-stamp certificate of equivalent value. The judgment, delivered on September 17, 2025, overturns an earlier directive by the Collector of Khordha which denied the cash refund and instructed Nayak to collect an e-stamp certificate.

The court recognized the impracticality of the Collector's decision, considering Nayak's advanced age and the unlikely utilization of the e-stamp certificate in his lifetime. The ruling emphasized the doctrine of unjust enrichment, highlighting that the refusal of cash refund would unjustly benefit the State without any practical benefit to Nayak.

Justice Behera underscored that laws should adapt to societal needs and practical realities rather than adhering to rigid technicalities. The judgment draws upon precedents where similar principles have been upheld, such as in GFIL v. Libra Buildtech Private Limited and Harshit Harish Jain v. State of Maharashtra. The court argued that the denial of cash refund in favor of e-stamp certificates fails to address the equitable balance expected in fiscal determinations.

The petitioner had initially sought the refund after the Sub-registrar, Bhubaneswar declined to register his gift deed written on the aforementioned stamp papers. Despite Nayak's application for cash refund, the Collector's office rejected the request, citing Section 53(c) of the Indian Stamp Act, 1899. The High Court, however, quashed this decision, deeming it impractical and unbeneficial for Nayak, given his age.

Justice Behera's judgment reinforces the principle that legal decisions must prioritize societal benefits and practical applicability. The court directed the Collector, Khordha to process the cash refund within two weeks, marking a significant victory for Nayak and setting a precedent for similar cases.

This case reiterates the judiciary's role in addressing societal needs and ensuring justice prevails over procedural technicalities, affirming the legal system's commitment to fairness and equity.

Statutory provision(s): Indian Stamp Act, 1899 Section 53(c), Constitutional Law Articles 226 and 227

Jagannath Nayak v. Collector, Khordha, (Orissa) : Law Finder Doc Id # 2780900