Sheeraj Projects Private Limited & Ors vs Administration Of The Union Territory Of Andaman And Nicobar Islands & Ors

Krishna Rao, J

The petitioners have filed the present writ application challenging the final reminder dated 31st March, 2026 wherein the respondent authorities have directed the petitioner to remit the applicable stamp duty and registration charges and complete the execution of the agreement on or before 10th April, 2026 and if the petitioners fail to pay the stamp duty, the letter of award issued in favour of the petitioners shall be cancelled.

The main issue raised by the petitioners in the present application that the petitioners have participated in the tender process initiated by the respondents for the purpose of development of 5-Star Eco-Tourism Resort at Megapode & Shaheed Dweep on PPP Mode and the petitioners have participated in the said tender process and awarded with the contract.

After the award of the contract, the respondent authorities have issued a notice to the petitioners on 13th February, 2026 directing the petitioners to deposit Rs. 6,78,81,348/- being the stamp duty and registration fees of Rs. 1,13,573/- of Megapode resort. In the said notice it was also informed to the petitioners that the petitioners has to pay the stamp duty of Rs. 5,51,72,145/- and Rs. 91,95,373/- being registration fees with respect to Shaheed Dweep.

The petitioners have sent a reply to the said notice drawing the attention of Clause 3.1.2(a) of the Article 3 of the Concession Agreement and submits that as per the said clause right of way, access and lease rights to use the project site for the purpose of developing the project to the extent conferred by the provisions of this agreement will not cover to pay the stamp duty.

The respondent authorities again issued the impugned notice by threating the petitioners that if the petitioners will not pay the stamp duty, the letter of award issued in favour of the petitioners shall be cancelled.

In the present writ application the question whether the Concession Agreement requires a payment of stamp duty as directed by the respondents. This Court is of the view that this matter is required to be adjudicated only after exchange of affidavit. Though the petitioners have relied upon a judgment in the case of M/S Rewa Tollway P. Ltd. –Vs.- The State of Madhya Pradesh & Ors. passed in Civil Appeal No. 8985 of 2013 dated 19th July, 2024 wherein the Hon’ble Supreme Court has held that the definition of lease as given under the Indian Stamp Act clearly covers any instrument by which tolls of any description are left and also under Section 105 of the Transfer of Property Act, all ingredients of the lease are fulfilled.

Mr. S. N. Mookherjee, learned senior advocate appearing for the petitioners distinguished the said judgment and submits that the facts of the said case is distinguishable from the facts of the present case.

Considering the above this Court finds that the issue whether the Concession Agreement is required to pay the stamp duty is to be decided only after hearing the parties after exchange of affidavits. In view of the above during pendency of the writ application the petitioners are directed to pay the stamp duty as well as the registration charges of the Concession Agreement by way of bank guarantee in the name of Sub-Registrar, South Andaman on or before 16th April, 2026. If the petitioner shall deposit the said bank guarantee in the name of Sub-Registrar, South Andaman, the Sub-Registrar shall keep the said bank guarantee in the safe custody till the disposal of the present case and the Sub-Registrar shall registrar the Concession Agreement subject to outcome of the result of the writ petition.

It is further made clear that if the petitioners fail to succeed in the writ application, the bank guarantee submitted by the petitioners with regard to the stamp duty and the registration charges shall be used by the Sub-Registrar for stamp duty and registration charges of the Concession Agreement and in case the petitioners succeed in the writ petition, the said bank guarantee shall be returned to the petitioners.

The respondents are directed to file affidavit-in-opposition within three weeks, reply, if any, thereto be filed within two weeks thereafter.

This matter is connected with the Circuit Bench at Port Blair. The department is directed to send the records of this case to the Circuit Bench at Port Blair immediately.

It is made clear on or before 16th April, 2026 if the petitioners fail to submit bank guarantee with respect to stamp duty and the registration fees, the authorities shall be at liberty to take appropriate steps in accordance with law. Once the bank guarantee is submitted by the petitioners, the petitioners shall continue to renew the said bank guarantee from time to time till the disposal of the writ application.