Indian Kanoon - Search engine for Indian Law

1. This revision arises out of proceedings under the Stamp Act, 1899,for under-valuation of an instrument of conveyance for purposes of stamp duty. The conveyance was executed under an instrument dated 24-9-1976. The vendor is a public limited company by name Nonsuch Tea Estates Ltd., Coonoor (hereinafter called 'Nonsuch'). The purchaser is a private limited company, by name, Mahavir Plantations Pte, Ltd., (hereinafter called 'Mahavir'). The subject matter of the conveyance comprised three tea estates by name Prospect Estate, Liddledale Estate and - Seaforth Estate. Although the transaction covered the entire plantations in all the three estates, as going concerns, the document was executed only in respect of the lands as such and other items of immovable property. The lands conveyed under the instrument were of the total extent of 6029-76-1/2 acres. Of this extent, Prospect and Liddledale estates covered 3508.83-1/2 acres; the Seaforth estate covered 2520.93 acres. The total consideration set forth in the instrument, and that was also claimed to be the market value, for the three estates of the aggregate extent of 6029.76-1/2 acres was Rs. 1,05,47,955. A stamp duty of Rs. 10,18,407-30 was duly paid on the instrument. The conveyance was registered by the Joint Sub-Registrar, Coimbatore as document No. 2561/76 dated 25-9-1976. After registration, the Joint Sub Registrar, however, sent the document to the Collector of Nilgiris for determination of the market value of the properties conveyed and the proper duty payable thereon, apparently in the view that the market value on which stamp duty was paid had not been truly set forth in the instrument. On receipt of the reference, the Collector initiated an inquiry. The Collector first drew up a provisional determination of market value and, after giving an opportunity to the claimant, Mahavir, the Collector passed a final order. Under this order, the Collector determined the market value at Rs. 5,64,11,500, and determined the stamp duty at Rupees 57,21,795.31. The determination of the deficit stamp duty thus came to Rupees 47,03,307-60. The Collector directed that the amount should be paid within 10 days of his order. The claimants, Mahavir, thereupon appealed from the Collector's order to the Appellate Authority, namely, the Subordinate Judge, Nilgiris. The Appellate Authority allowed the appeal on grounds which I shall presently state. This revision has been brought before this Court by the Collector of Nilgiris against the order of the Appellate Authority.