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Allahabad High Court
Rajesh And Others vs State Of U.P. And Others on 1 July, 2010
Court No. - 33

Case :- WRIT - C No. - 1196 of 2010

Petitioner :- Rajesh And Others
Respondent :- State Of U.P. And Others
Petitioner Counsel :- A.K. Malviya,Rajesh Pachauri
Respondent Counsel :- C.S.C.

Hon'ble Pankaj Mithal,J.

In respect of the sale deed dated 9.9.2008 proceedings under Section 33/47A
of the India Stamp Act were initiated against the petitioners.

The Stamp Collector/District Magistrate vide order dated 21.2.2009
determined the market value by treating the land as non agricultural in nature
and by applying abadi rates and accordingly determined the deficiency of
stamp duty. The revision of the petitioners was also dismissed by the
Commissioner of the Division vide order dated 9.11.2009. The aforesaid two
orders have been assailed by the petitioners in the present writ petition.

Rejoinder affidavit filed today is taken on record.

Learned counsel for the parties agree for the final disposal of the writ petition
at the admission stage itself as the pleadings have been completed.

Learned counsel for the petitioners submitted that the inspection report of the
Stamp Collector dated 13.11.2008 clearly states that the land in dispute is in
the nature of pond surrounded on three sides by agricultural land on which
paddy crop is standing but even then the authorities have treated the land to be
non agricultural in nature. It is also submitted that there is no declaration
under Section 143 of the U.P.Z.A. and LR Act in respect of the above land.

Learned Standing counsel on the other hand has defended the impugned
orders on the ground that the land in dispute had been purchased for
residential purposes and since the matter has been referred for determination
of market value prior to registration of the sale deed, no error was committed
in applying the circle rate notified for abadi area.

It is true that where before registration of the sale deed matter is referred for
determination of market value, the authorities are required to follow the circle
rates notified for the purposes of payment of stamp duty in determining the
market value instead of general principles as are normally applicable for
determining the market value for the payment of compensation under the
Land Acquisition Act. However, before applying the circle rate it is equally
important to determine the nature of the land. Unless the nature of the land is
determined it would not be appropriate to apply either the circle rate of the
agricultural land or of the non agricultural land ie. abadi land for determining
the market value.

In the instant case the land in dispute is apparently agricultural in nature. The
report of the Stamp Collector dated 13.11.2008 is a clear piece of evidence in
this regard. There is no declaration under Section 143 of the U.P. Z.A. and LR
Act declaring the aforesaid land as non agricultural in nature, atlest no such
notification/declaration had been brought on record or has been referred to in
passing the impugned orders. Thus, in effect the land which was agricultural
in nature would continue to be as such and would be treated as agricultural for
the purposes of charging stamp duty.

In Aniruddha Kumar and Ashwini Kumar Vs. Chief Controlling Revenue
Authority U.P. Alld. and another 2000(3) AWC 2587 this Court has clearly
laid down that where in respect of agricultural land there is no declaration
under Section 143 of the U.P. Z.A.and LR Act its nature would not change
and its market value for the purposes of payment of stamp duty would be
determined on the basis of the agricultural character of the land not on the
future potentiality.

In M/s. Maya Food and Vanaspati Ltd. Co. Vs. Chief Controlling Revenue
Authority (Board of Revenue ) Allahabad, 1990 (90) RD 57 this Court also
land down that market value of the land for the purposes of payment of stamp
duty can not be determined with reference to its future use or the intended use
to which it is likely to be put by the purchaser.

In view of the aforesaid legal position and the facts and circumstances of the
case, as the land in dispute is of agricultural nature, in the absence of any
declaration under Section 143 of the U.P. Z.A. and LR Act coupled with the
fact that its potential use is of no relevance, the authorities below has
manifestly erred in law in treating it to be an abadi land and applying the
circle rate prescribed for abadi land for the area.

Accordingly, the impugned orders dated 21.2.2009 and 9.11.2009 are hereby
quashed and the matter is remitted to the Stamp Collector for determining the
market value in accordance with the observations made above and to answer
the reference so made by the Sub Registrar accordingly as expeditiously as
possible preferably within a period of 3 months from the date of production of
the certified copy of this order.

Order Date :- 1.7.2010
SKS


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