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Under challenge in this petition is Ext.P2 order passed by the learned Additional District Judge, Kottayam in CMA No.70 of 2008 filed by the respondent against the order of the second petitioner directing the respondent to pay Rs.1,04,650/- as deficit stamp duty and Rs.16,746/- as registration fees.

2. The respondent purchased 1.69 percent undivided interest in 19.36 Ares of property in Muttambalam Village with right to construct an apartment having a super built up area of 113.87 sq.metres along with one covered parking area. The value set forth in the instrument is Rs.1,61,645/-. For determination of deficit stamp duty, reference under Section 45B of the Kerala Stamp Act, 1959 (hereinafter referred to as the 'Act') was made by the third petitioner to the second petitioner. On  objection being taken to the sufficiency of stamp duty and registration fee, the second petitioner held that the value of the property covered by the instrument is Rs.10 lakhs and directed the respondent to pay deficit stamp duty and registration fee as above.

(2) Where on such verification, the registering officer is satisfied that the value of the land or the consideration set forth in the instrument is not less than the fair value of the land, he shall duly register the instrument.

(3) Where, on verification the registering officer finds that the value of the land or the consideration set forth in the instrument is less than the fair value of the land fixed under Section 28A, he shall, by order, direct the payment of proper stamp duty on the fair value of the land fixed under Section 28A within a period of seven days from the date of the order and on payment of the deficit stamp duty, the instrument shall be duly registered.

(5)An appeal under sub-section (4) shall be filed within thirty days of the date of the order sought to be appealed against.

(6)The District Court shall hear and dispose of the appeal in such manner as may be prescribed by rules made under this Act."

13. A combined reading of Section 45A and Section 45B would reveal that those two Sections deal with two  different situations. Under Section 45A, the registering authority, while registering an instrument, can verify whether the value of land or consideration set forth in the instrument is the fair value of the land or not. If the value of the land or the consideration set forth is not less than the fair value of the land fixed under Section 28A, he has no option but to register the instrument forthwith. However, if the registering authority finds that the value of the land or consideration set forth in the instrument is less than the fair value of the land fixed under Section 28A, he shall order payment of proper stamp duty on fair value and on payment of the deficit stamp duty he is bound to register the document.

14. However, circumstances are bound to occur where the actual consideration passed is higher than the fair value fixed under Section 28A. Section 45B states how such cases are to be dealt with. In such cases, if the registering officer has reason to believe that the value of the property or consideration has not been duly set forth, after  registering such instrument, he can refer the same to the Collector for determination of the value or consideration and proper duty payable. Section 45B(3) also empowers the Collector to initiate suo motu action within two years from the date of registration of an instrument which was not referred to him under Sub Section (1) of Sec.45B to call for and examine the correctness of the value or consideration set forth in the instrument and if he has reason to believe that the value or consideration has not been truly set forth in the instrument, to determine the value or consideration.