Indian Stamp Act, 1899 — S. 9A (Bihar Amendment) — Exemption for cooperative society transfers — Additional certification requirement — Ultra vires Held, Section 9A statutorily exempts instruments of transfer of premises executed by a registered cooperative society in favour of its members from stamp duty. Mandating an additional recommendation from Assistant Registrar, Cooperative Society, as a pre-condition for exemption is illegal and amounts to inserting an unwarranted barrier beyond the statute. (Paras 3, 11, 12, 14, 15)

1. Administrative Law — Judicial Review — Illegality — Irrelevant and Superfluous Considerations — Requirement of extra certification where statute already provides conclusive proof — Validity

Held, an administrative direction which insists upon performance of acts or submission of documents that have no relevance to statutory purpose or add no value to the integrity of the transaction constitutes an irrelevant consideration, rendering the action unlawful. (Paras 2, 2.1, 9, 12, 14)

2. Indian Stamp Act, 1899 — S. 9A (Bihar Amendment) — Exemption for cooperative society transfers — Additional certification requirement — Ultra vires

Held, Section 9A statutorily exempts instruments of transfer of premises executed by a registered cooperative society in favour of its members from stamp duty. Mandating an additional recommendation from Assistant Registrar, Cooperative Society, as a pre-condition for exemption is illegal and amounts to inserting an unwarranted barrier beyond the statute. (Paras 3, 11, 12, 14, 15)

3. Cooperative Societies — Registration — Certificate issued under Jharkhand Self-Supporting Cooperative Societies Act, 1996 — Conclusive evidence — No further verification permissible

Section 5(7) provides that the registration certificate issued by the Registrar is conclusive evidence of the society’s existence; State authorities are bound by this statutory declaration, and cannot insist upon additional verification for existence of a cooperative society. (Paras 2.2, 13, 14)

4. Registration Act, 1908 — Powers of Registering Authority — Scope — Cannot impose conditions alien to statute

Held, while the registering authority under S.34 may inquire into execution and stamping, it cannot superimpose conditions unrelated to statutory prerequisites nor require approval of another authority when statute itself grants conclusive proof. (Paras 6(ii), 9)

5. Good Governance — Simplicity in administration — Avoidance of redundant procedural burdens

Held, constitutional courts preserve simplicity and clarity in administrative processes. When a statute already provides conclusive proof, imposing extra verifications impairs efficiency, disturbs access to justice, and violates good governance principles. (Paras 2, 2.1, 9, 14)

6. Result

Impugned Memo No. 494 dated 20-02-2009 issued by Principal Secretary, Registration Department, Jharkhand mandating recommendation by Assistant Registrar, Cooperative Society is set aside as illegal. Appeal allowed; High Court judgment reversed. (Paras 15-16)

ANALYSIS OF FACTS AND REASONING  

A. Factual Matrix

• The appellant society was registered under the Jharkhand Self-Supporting Cooperative Societies Act, 1996.

• Section 9A of the Indian Stamp Act (Bihar Amendment) exempts stamp duty on instruments transferring premises by cooperative societies to their members.

• The Principal Secretary, by Memo dated 20-02-2009, required recommendation of Assistant Registrar before granting exemption.

• This Memo was challenged as an unauthorised imposition of an extraneous procedural layer.

B. High Court’s View (overturned)

The High Court sustained the Memo on the basis that verification was necessary to avoid misuse and purported simplification.

C. Supreme Court’s Legal Approach

1. Administrative Illegality Standard

   • If executive power is exercised based on irrelevant considerations or imposes burdens not relevant to statutory purpose, it is unlawful.

   • Courts must ensure powers are exercised in line with the object of statute and principles of rule of law.

2. Statutory Scheme

   • Cooperative societies become body corporate under Section 6 of 1996 Act.

   • Section 5(7) declares certificate of registration conclusive evidence of existence.

   • Therefore, society is officially recognised on statutory rolls; no further authentication required.

3. Finding on Memo

   • Additional verification adds nothing to legality, integrity, or genuineness of transfer.

   • The certificate itself satisfies statutory intent; another recommendation is redundant and obstructive.

   • Hence, requirement is superfluous, without statutory nexus, and illegal.

D. Holding

The Supreme Court allowed the appeal, held the Memo illegal, and set aside orders of Single and Division Benches of the High Court.