A bench headed by justice S Muralidhar said this while allowing the plea of S E Investments, which challenged the direction of the Registrar of Companies (ROC) seeking stamp duty on increased amount in authorised share capital.
"In the absence of a specific provision that permits the levy of stamp duty on the increase in authorised share capital, it would not be open to the Respondents (ROC) to insist upon S E Investments having to pay stamp duty for the increased authorised share capital," the court said.
S E Investments, a public limited company, was incorporated on March 5, 1992 with an authorised share capital of 3.5 crore. In 2010, it increased its capital to 125 crore.
The company sought the opinion of ROC and contended that there is no provision in the Delhi Stamp Act to pay the duty on increase in the authorised share capital.
However, the ROC directed the company to pay 25 lakh as stamp duty, prompting S E Investments to move the court.
"It is directed that the ROC will now proceed to accept the petitioner's Form 5 and record the increased authorised share capital without insisting on the petitioner paying stamp duty thereon," the court added.
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