The Supreme Court has struck down Jharkhand’s 2009 order that forced cooperative societies to undergo additional verification for stamp-duty exemptions. The Court held the rule imposed “unnecessary, excessive requirements” and violated principles of simple and transparent governance.
New Delhi: The Supreme Court on Friday cancelled a 2009 order of the Jharkhand government that forced cooperative societies to get one more verification from the assistant registrar before they could receive stamp duty exemption on property registration.
The bench of Justices P.S. Narasimha and Atul S. Chandurkar said the State had added “unnecessary, excessive requirements” and held that the directive was illegal and not supported by law.
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Justice Narasimha, while writing the judgment, explained that the government must make public procedures simple so that common people can easily complete their work.
The Court highlighted that public offices should work in a clear and simple manner and allow “effortless compliance” instead of creating extra hurdles.
The judgment said,
“Simplicity in public transactions is good governance. Constitutional courts uphold this virtue to strengthen the rule of law and ensure access to justice,”
stressing that administrative systems must not include
“complexity, redundant requirements and unnecessary burdens, which waste time, expense and disturb peace of mind.”
The cancelled directive, dated February 20, 2009, had instructed sub-registrars to grant exemption under Section 9A of the Indian Stamp (Bihar Amendment) Act, 1988, only after getting a recommendation from the assistant registrar.
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This recommendation had to confirm that the cooperative society seeking the benefit actually existed. However, the Supreme Court found that this extra step had no meaningful purpose.
The bench said it was based on “irrelevant considerations” and pointed out that,
“Once a cooperative society is registered and a certificate is issued, it is a conclusive proof of its existence and continuation as a body corporate,”
adding that the State’s insistence on further checking was “superfluous, redundant and illegal.”
The appeal was filed by Adarsh Sahkari Grih Nirman Swawlambe Society Limited, which had challenged the memo after both a single judge and a division bench of the Jharkhand High Court had supported the government’s view that extra verification helped prevent misuse of stamp duty exemption.
But the Supreme Court disagreed and made it clear that the government cannot create conditions that do not improve the stamp duty exemption process in any way or add genuine value.
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According to the Court, the executive cannot put unnecessary restrictions “under the guise of regulation.”
By cancelling the 2009 directive and reversing the High Court orders, the Supreme Court sent a wider message: when the law already provides a proper certification process, the State cannot force people to complete extra steps that only increase delays and harassment.
The ruling reinforces that administrative procedures must be reasonable, necessary, and respectful of citizens’ time and rights.
Case Title:
ADARSH SAHKARI GRIH NIRMAN SWAWLAMBI SOCIETY LTD vs. THE STATE OF JHARKHAND & ORS.
DIARY NO. 7678 OF 2024
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