High Court Punjab-Haryana High Court

Satish Chand And Others vs State Of Haryana on 23 November, 2009

Punjab-Haryana High Court
Satish Chand And Others vs State Of Haryana on 23 November, 2009
Civil Revision No. 1941 of 2003                                [1]

     IN THE HIGH COURT OF PUNJAB AND HARYANA AT
                     CHANDIGARH

                                        Civil Revision No. 1941 of 2003
                                        Date of Decision: 23.11.2009

Satish Chand and others                                 ......Appellant

              Versus

State of Haryana                                        .......Respondents

CORAM: HON’BLE MR. JUSTICE HEMANT GUPTA.

1. Whether Reporters of local papers may be allowed to see the
judgment?

2. To be referred to the Reporters or not?

3. Whether the judgment should be reported in the Digest?

Present: Shri C.B. Goel, Advocate, for the petitioner.

Shri Lokesh Sinhal, Additional AG, Haryana.

HEMANT GUPTA, J. (Oral).

Challenge in the present revision petition is to the order

passed by the learned Collector on 28.2.2002 and the order in appeal

dated 7.11.2002 passed by the Commissioner, in the proceedings under

Section 47-A of the Indian Stamp Act, 1899 [ for short `the Act’ ].

The present petitioner, on the basis of an instrument of sale

dated 27.9.2001, purchased land measuring 61 kanals 11 marlas at the

stated value of Rs.1,70,000/- per acre, total amounting to

Rs.13,08,000/-. The petitioner was served with a show cause notice on

the ground that the instrument of sale is undervalued for the purpose of

stamp duty as the market price of the land is Rs.5 lacs per acre upto the
Civil Revision No. 1941 of 2003 [2]

depth of one killa beyond the road, as per the Collector’s rate fixed. On

the basis of the said fact, the Collector found that the value of the

property sold by the instrument of sale Rs.24,19,375/- and that the

petitioner is to make up the deficiency on the stamp duty amounting to

Rs.1,38,925/-. The said order was affirmed in appeal by the

Commissioner. It is the said orders, which are under challenge in the

present petition.

Learned counsel for the petitioner has argued that the

Collector has found the instrument of sale undervalued relying upon

the Collector’s rate. Still further, it was found that the sale deed has

been executed on the basis of an agreement to sell allegedly of the year

1998. Therefore, the price agreed in the aforesaid agreement cannot be

made basis of the sale consideration of the sale deed executed in the

year 2001.

The Hon’ble Supreme Court in State of Punjab and others

v. Mohabir Singh and others, (1996)1 Supreme Court Cases 609 and

this Court in Gauri Singla v. State of Haryana and others, 2008(4) PLR

524, have held that the Collector’s rate cannot be made basis for

determining the sale consideration recited in an instrument of sale. It

was held that such Collector’s rate has no statutory recognition and,

therefore, determination of the market value on the basis of Collector’s

rate is not sustainable.

In view of the aforesaid judgments, the orders passed by the

Authorities under the Act, holding that the instrument of sale is
Civil Revision No. 1941 of 2003 [3]

undervalued for the purposes of stamp duty, are clearly not sustainable.

There is no other evidence of the market value of the land conveyed in

the year 2001.

Hence, the present revision petition is allowed. The

impugned orders are set aside. The matter is remitted back to the

Collector for re-determination of the deficient stamp duty, if any, on

the basis of the market value of the land subject matter of instrument of

sale.

Parties, through their counsel, are directed to appear before

the learned Collector on 21.12.2009, for further proceedings, in

accordance with law.

[ HEMANT GUPTA ]
JUDGE
23-11-2009
ds