Introduction
In a progressive judgment that underscores the judiciary’s role in facilitating amicable resolutions in matrimonial disputes, the Supreme Court of India has ruled that a wife is exempt from paying stamp duty on the registration of a property transferred to her as part of a divorce settlement.
The case of Arun Rameshchand Arya v. Parul Singh (2025) highlights the application of constitutional powers under Article 142 to dissolve marriages by mutual consent while ensuring fair property distribution without additional financial burdens. This decision not only promotes settlements in family matters but also clarifies exemptions under registration laws, setting a precedent for similar cases.
Brief Facts
The petitioner, Arun Rameshchand Arya (husband), filed a transfer petition before the Supreme Court seeking to shift the divorce proceedings initiated by the respondent, Parul Singh (wife), from the Family Court in Bandra, Mumbai, to a competent court in Delhi. The couple, both highly qualified professionals, had been embroiled in disputes over their marital assets.
During mediation, the parties reached a mutual agreement. The central asset in question was a jointly owned flat in Kalyan, Maharashtra. Initially, there were contentions regarding the source of funds used to purchase the property. However, as part of the settlement, the husband agreed to relinquish all his rights, title, and interest in the flat, transferring absolute ownership to the wife in return, the wife consented to the dissolution of their marriage without claiming any alimony or additional financial support from the husband. This compromise was formalized through applications filed under Article 142 of the Constitution, seeking divorce by mutual consent.
Explanation of Law
The key legal framework in this case revolves around the Registration Act, 1908, particularly Section 17(2)(vi), which provides exemptions from compulsory registration (and consequently stamp duty) for certain decrees or orders of courts. This provision states that nothing in the Act applies to any decree or order of a Court except a decree or order expressed to be made on a compromise and comprising immovable property other than that which is the subject-matter of the suit or proceeding.
Article 142 of the Constitution empowers the Supreme Court to pass any decree or order necessary for doing complete justice in any cause or matter pending before it. This includes dissolving marriages by mutual consent in exceptional circumstances, even if statutory requirements under the Hindu Marriage Act, 1955 (such as the one-year waiting period), are not strictly met.
The Court also drew from its precedent in Mukesh v.State of Madhya Pradesh & Anr (2024), clarified that a compromise decree affirming pre-existing rights does not require registration or stamp duty under the Registration Act and Indian Stamp Act. However, if unrelated properties are included in the compromise, registration and stamp duty may apply.
What is Stamp paper?
Stamp paper, also known as non-judicial stamp paper or e-stamp, is a special type of paper that bears a pre-printed revenue stamp issued by the government. It is used to pay stamp duty—a tax levied by the state governments in India under the Indian Stamp Act, 1899—on legal documents to make them legally valid and admissible in court. It is used to legally document agreements, contracts, affidavits and other transactions to make them enforceable in a court of law.It is available in denominations( e.g.; ₹10, ₹100, ₹500, ₹1,000, etc.).
Why is Stamp Paper Important?
It is mandatory for many legal agreements to be executed on stamp paper of adequate value. It is important for making the documents legally valid, required for registration, admissible as evidence in court, avoid heavy penalties, prevent fraud and ensure revenue.
Stamp Duty Rates Across Major States (2025)
| State | Property Registration (Men) | Women Buyer Discount | Lease (>1 yr) |
| Maharashtra | 6% (+1% Metro cess in Mumbai) | 1% less | 5% of avg. annual rent |
| Karnataka | 5% (up to ₹45L: 3–5%) | Same rate | 1–10% of rent |
| Delhi | 4% (women), 6% (men) | 2% less | 2–5% of avg. rent |
| Uttar Pradesh | 7% | 1% less | 2% of 2x annual rent |
| Tamil Nadu | 7% + 4% registration | Same | 1% of total rent |
Legal Issues
The primary legal issues addressed were:-
1. whether the transfer of the flat to the wife, pursuant to compromise in a divorce settlement, could be exempted from the stamp duty under the registration.
2. Scope of Article 142 in Matrimonial Settlements: Could the Supreme Court invoke its extraordinary powers to dissolve the marriage by mutual consent and enforce the property transfer without imposing additional financial obligations?
Court’s Decision
A bench comprising Justices Vikram Nath and Sandeep Mehta delivered the judgment, allowing the applications under Article 142 and dissolving the marriage by mutual consent. The Court directed that absolute ownership of the flat vest solely in the wife’s name, free from any encumbrances, and that the husband would have no further rights or claims over it.
Crucially, the bench ruled that the registration of the flat in the wife’s name is exempt from stamp duty. Relying on Section 17(2)(vi) of the Registration Act.
Conclusion
The Arun Rameshchand Arya v. Parul Singh judgment marks a compassionate and practical approach by the Supreme Court towards divorce settlements, exempting wives from stamp duty on properties received as permanent alimony. By invoking Article 142 and clarifying exemptions under the Registration Act, the decision reduces financial hurdles in matrimonial resolutions, encouraging more couples to opt for amicable separations.
This precedent is likely to influence future cases, promoting gender-neutral but context-sensitive interpretations of property rights in divorces.
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