High Court Punjab-Haryana High Court

C.R. No.4719 Of 2004 (O&M) – vs Commissioner on 10 August, 2009

Punjab-Haryana High Court
C.R. No.4719 Of 2004 (O&M) – vs Commissioner on 10 August, 2009
C.R. No.4719 of 2004 (O&M)                                  -1-

 IN THE HIGH COURT FOR THE STATES OF PUNJAB AND
             HARYANA AT CHANDIGARH

                             C.R. No.4719 of 2004 (O&M)
                             Date of Decision: 10.08.2009

2.       C.R. No.4720 of 2004 (O&M)

Jagmal Singh Thakran and another                    .....Petitioners

                               Versus

Commissioner, Gurgaon Division, Gurgaon and another
                                                  ....Respondents

Present: Mr. Vishal Aggarwal, Advocate
for Mr. Lokesh Sinhal, Advocate
for the petitioners.

Mr. D.S. Nalwa, Addl. A.G., Haryana.

CORAM:HON’BLE MR. JUSTICE K. KANNAN

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?

-.-

K. KANNAN J. (ORAL)

1. The orders in challenge are two consecutive orders passed

by the Collector, Gurgaon and in appeal, by the Commissioner,

Gurgaon Division. The order of the Collector purported to have been

passed under Section 47-A of the Indian Stamp Act and the relevant

rules framed thereunder. By the impugned orders, the stamp duty paid

on the document of sale, which was produced for registration on

06.07.2001, was found to be deficient in value and the Collector had

ordered an additional stamp duty of Rs.1,45,500/- to be paid, which

was affirmed in appeal.

2. The impugned orders make reference to the justification for

the finding that the property had been undervalued by reference to the
C.R. No.4719 of 2004 (O&M) -2-

Rates Committee that had fixed the value of the property in South City

as Rs.6,000/- per square yard and by such a reckoning of valuation,

the payable value of the land purchased came to Rs.30,13,930/-

against the stated consideration of Rs.18,50,000/-.

3. The adjudication under Section 47-A under the Indian

Stamp Act shall be only with reference to the market value and the

value fixed by Rates Committee is invariably provisional and merely a

guideline. If ever, there is a dispute about the valuation as an

instrument valuable for duty, it shall be the duty of the Collector to

examine the market value of the property and not adopt the guideline

value itself as governing a conclusive proof of the valuation of the

property. A Division Bench of this Hon’ble Court had an occasion to

consider the issue in Mulakh Raj Vs. State of Haryana and others

2001 (1) PLJ 364 that an order directing deficiency of alleged

undervaluation of an instrument could not be sustained if the

valuation as found by the Rates Committee alone as the basis for

determination of market value. The impugned orders of the Collector

as affirmed by the Commissioner are set aside and the matter remitted

to the Collector and the enquiry shall be undertaken by the Collector

giving an opportunity to the vendee to adduce evidence regarding the

market value of the property and pass appropriate orders in

accordance with law.

4. The civil revision, under the circumstances, is allowed but

there shall be no direction as to costs.

(K. KANNAN)
JUDGE
August 10, 2009
Pankaj*