List of Current Affairs

Source: Madras High Court 

Why in News? 

A full bench of the Madras High Court comprising Justice SM Subramaniam, Justice Bharatha Chakravarthy and Justice C Kumarappan, in the case of V. Shiva v. The Inspector General of Registration and Others (2026), held that the term "Family" under the Indian Stamp Act, 1899 does not include grandparents, and any settlement executed by grandchildren in favour of a grandparent would be chargeable as per the appropriate stamp duty provisions and not at the concessional rate under Article 58(a)(i). 

What was the Background of V. Shiva v. The Inspector General of Registration and Others (2026) Case? 

• A reference was made to the full bench on the specific question of whether "grandparents" fall within the definition of "Family" as provided under the Indian Stamp Act, 1899, for the purpose of stamp duty on settlement deeds. 
• Under Section 3 of the Act, duty is charged on every instrument mentioned in Schedule I. Article 59 of the Schedule deals with settlements and was further amended by the Indian Stamp (Tamil Nadu Amendment) Act, 1981. 
• As per the amended provisions, a settlement in favour of a member or members of a "family" is chargeable at the concessional rate of one rupee for every Rs. 100 of the market value of the property under settlement. 
• The explanation to the provision defines "family" to mean father, mother, husband, wife, son, daughter, grandchild, brother, or sister. Where personal law permits adoption, adoptive relations are also included within the respective categories. 
• The question arose because while "grandchild" is expressly included in the definition, "grandparent" is conspicuously absent, leading to a dispute on whether the definition could be read expansively to include grandparents as well. 

What were the Court's Observations? 

• The full bench answered the reference in the negative, holding that grandparents are not included within the definition of "Family" under the Act.  
• The court held that since the Indian Stamp Act is a fiscal and revenue generation law, it must be interpreted literally and cannot be given a restrictive or expansive meaning beyond what the statute itself provides. 
• On the nature of the definition clause, the court noted that the explanation uses the word "means," making the definition exhaustive. When a definition clause employs "means," no additional meaning — whether narrower or broader — can be assigned to the defined term. 
• The court also addressed the underlying rationale of the concessional rate, observing that it was introduced to extend relief for settlements made out of love and affection. While a grandfather settling property in favour of a grandchild is clearly motivated by love and affection, the reverse scenario — a grandchild settling property in favour of a grandparent — carries a greater risk of being used as a device to pass property to distant relatives and avoid higher stamp duty, with the grandparent acting merely as a conduit for further transfer. 
• The court therefore concluded that excluding grandparents from the definition of "family" is neither illegal nor illogical, and that any settlement by a grandchild in favour of a grandparent would be chargeable at the full applicable rate. 

What is the Indian Stamp Act, 1899?  

About:  

• A central fiscal legislation enacted during British rule to regulate the imposition and collection of stamp duty on legal and financial instruments across India. 
• Its primary objective is to generate revenue for the government while ensuring that documents are legally valid and admissible as evidence in courts. 
• Stamp duty under the Act is essentially a tax paid to the government in exchange for the legal recognition of a document. 

Applicability and Scope: 

• Applies to a wide range of instruments including bills of exchange, promissory notes, bonds, debentures, insurance policies, conveyances, and property transfer documents. 
• Covers both movable and immovable property transactions. 
• Applies across India, though state governments have the power to modify rates for certain instruments within their jurisdiction. 

Key Provisions: 

• Section 3 — The charging section; imposes stamp duty on every instrument specified in Schedule I of the Act. 
• Section 9 — Empowers the Central and State Governments to reduce, remit, or compound stamp duties in specified circumstances. 
• Section 17 — Instruments must be stamped at the time of execution, not after. 
• Section 35 — An instrument that is not duly stamped is inadmissible in evidence and cannot be acted upon by any public officer or court. 
• Section 33 — Empowers courts and authorized officers to impound instruments that appear to be insufficiently stamped. 
• Section 40 — Provides the procedure for dealing with impounded documents, including collection of penalty. 
• Schedule I — Lists all instruments chargeable with duty along with the applicable rates.

State Amendments: 

• While the Act is a central legislation, stamp duty is a state subject under the Constitution (Entry 63, List II). 
• States like Tamil Nadu, Maharashtra, Karnataka, and others have enacted amendments to modify duty rates and introduce additional categories of instruments. 
• The Indian Stamp (Tamil Nadu Amendment) Act, 1981, for instance, introduced concessional rates for family settlements, which was recently interpreted by the Madras High Court. 

Limitations of the 1899 Act: 

• Being a colonial-era legislation, it is largely outdated and does not adequately address modern financial instruments and digital transactions. 
• Lacks express provisions for electronic stamping (e-stamping), digital documents, and online financial instruments. 
• Inconsistencies exist between Central and State provisions, leading to disputes and litigation. 
• The multiplicity of state amendments has created a fragmented and complex stamp duty regime across India. 

Proposed Reforms: 

• The Ministry of Finance introduced the Indian Stamp Bill, 2023 to repeal and replace the 1899 Act with a modernized framework. 
• The proposed Bill aims to streamline stamp duty provisions, incorporate e-stamping mechanisms, reduce litigation, and create a uniform national framework for stamp duty administration. 

Source: Madhya Pradesh High Court 

Why in News? 

Justice Deepak Khot of the Madhya Pradesh High Court, in the case of Ekta Vaish v. Deepak Kuchbandiya (2026), held that the convenience of the wife is no longer the paramount consideration for deciding transfer petitions in matrimonial disputes. The Court observed that viable modern alternatives, including video conferencing facilities and compensation of travel expenses, adequately address concerns of inconvenience without necessitating a transfer of proceedings. 

What was the Background of Ekta Vaish v. Deepak Kuchbandiya (2026)? 

• The wife filed a petition under Section 24 of the Civil Procedure Code, 1908 seeking the transfer of a restitution of conjugal rights case filed by her husband before the Family Court of Narsinghpur. 
• The counsel for the wife contended that the distance between Harda and Narsinghpur exceeded 300 kilometres, making travel difficult and unsafe for her. 
• The Court relied on several Supreme Court judgments and concluded that transfer petitions should not be routinely allowed merely on the ground of inconvenience to the wife. 
• Notably, the wife herself had filed two FIRs against the husband in Narsinghpur and had previously travelled there in connection with those proceedings, which the Court considered relevant to its assessment. 

What were the Court's Observations? 

• The bench observed that the parties are not required to appear at every hearing, and that counsels may represent them at most stages of the proceedings. 
• The Court noted that the personal presence of parties is generally required only at the stage of conciliation and evidence, and that modern facilities such as video conferencing provide an effective alternative to physical transfer of proceedings. 
• The Court directed that the applicant may appear before the Family Court, District Narsinghpur through video conferencing, and that for her examination, travel, lodging, and boarding expenses would be borne by the respondent. 
• The Family Court, Narsinghpur was directed to fix a date for examination of the applicant and accordingly direct the respondent to make payment of such expenses. 
• The bench emphasized that the availability of technology and cost-compensation mechanisms renders routine transfers in matrimonial disputes unnecessary and unwarranted. 

What is Section 24 of CPC?  

• This Section deals with the general power of transfer and withdrawal.   
• Who can transfer: High Court or District Court, either on application by a party or suo motu (on its own motion). 
• What can be transferred: Any suit, appeal, or other proceeding (including execution proceedings) at any stage. 
• Powers available: 
  • Transfer a pending case to any competent subordinate court. 
  • Withdraw a case from a subordinate court and either try it themselves, transfer it to another subordinate court, or retransfer it to the original court. 
• After transfer: The receiving court may either retry the case from scratch or continue from the point at which it was transferred or withdrawn. 
• Subordination clarification: Courts of Additional and Assistant Judges are deemed subordinate to the District Court for this purpose. 
• Small Causes Court cases: A court trying a transferred Small Causes suit is deemed to be a Court of Small Causes for that suit's purposes. 
• Jurisdiction exception: A case may even be transferred from a court that has no jurisdiction to try it. 
• Notice requirement: Notice must be given to parties and they must be heard if they wish, except when the court acts suo motu.