Bombay HC Orders Registration Of Kalpataru’s 999-Year Lease Deed, Waives Delay Penalty

Mumbai, September 30, 2026: The Bombay High Court has held that citizens cannot be penalised for delays caused by government authorities in completing statutory processes, directing the registration of a 999-year lease deed executed by Kalpataru Gardens Ltd nearly nine years ago.

A bench of Chief Justice MC Tripathi and Justice Advait Sethna set aside orders rejecting registration of the deed and directed the revenue authorities to register it without imposing any penalty for delay.

Lease Deed Pending Since 2017

The dispute concerned a 1,050-square-metre plot in Bhandup for which Kalpataru Gardens executed the lease deed in July 2017. The company submitted the instrument to the Collector of Stamps in August 2017 for adjudication of stamp duty. However, the process continued for several years amid appeals, revaluation proceedings and disruptions caused by the Covid-19 pandemic.

The company eventually opted for the state's Amnesty Scheme in 2024 and paid revised stamp duty of Rs 22.25 lakh in March 2025. When it thereafter approached the authorities for registration, the Collector of Stamps and the Joint Sub-Registrar rejected its application, citing the four-month limitation under Section 23 of the Registration Act, 1908.

Company Challenges Registration Delay

Senior Advocate Surel Shah, appearing for Kalpataru, argued that the company had diligently pursued the matter throughout and could not be blamed for the delay. Since the document remained under adjudication before the Collector of Stamps, it was not possible for the company to complete the registration process within the prescribed period, he submitted.

Additional Government Pleader Prashant Kamble opposed the plea, contending that the statutory time limit was mandatory and that it was the responsibility of the parties to present an instrument for registration within four months of its execution.

Court Rejects State’s Contention

Rejecting the State's contention, the bench held that the period consumed by the stamp duty adjudication process could not be counted against the company when calculating the limitation period for registration.

"The delay in presenting the document for registration was purely attributable to Respondent No. 3 [Collector of Stamps]... This delay cannot be held as detrimental to the Petitioners who, without any fault attributable to them, have been diligently pursuing the proceedings," the court observed.

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The bench further held that "mere delay cannot defeat substantive justice" and directed the authorities to exclude the period from August 2017 to April 2025, during which the stamp duty proceedings remained pending, while computing the limitation for registration.

The court accordingly directed registration of the lease deed without levying any penalty on Kalpataru for the delay.

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