Document Fragment View

Matching Fragments

(ii) The 1st respondent, taking into account of the surrounding values of the survey numbers and by personal inspection, classified the lands in question as Industrial Type II and fixed the value at Rs.500/- per sq.ft. by proceedings dated 12.07.2017. Even if the procedure adopted, the value as found in the the Guideline Register, it is the Registering Officer, who has the discretionary power under sub-section (1) of section 47-A of the Indian Stamp Act, 1899, to decide whether the value set-forth in the sale deed is in accordance with the open market value.
(i) AIR 1990 Madras 251 [M/s. Park View Enterprises and another v. State Of Tamil Nadu And Others] wherein the Division Bench of this Court held as follows:-
82. Section 3 of the Act is the charging section, which compels payment of stamp duty in respect of instruments, described in Schedule I to the Act. Section 17 states that all instruments chargeable with duty and executed by any person in India shall be stamped before or at the time of the execution. Sections 4, 5 and 6 deal with more than one instrument involved in a single transaction and relate to distinct matters and coming under several descriptions in Schedule I and as to what could be done under such circumstances Section 27 enjoins upon the parties to the instrument to disclose the consideration and the market value and all other facts and circumstances affecting the chargeability of the instrument with duty and that they shall be fully and truly set forth in the instrument. Section 47A introduced by Tamil Nadu Act 24 of 1967 and amended by T. N. Act 42 of 1981 Act, deals with certain kinds of documents, and if undervalued, how they are to be dealt with. The decisions referred to in the previous paragraphs are to the effect that it is not open to the Registering Authority to go behind the recitals and terms in the instrument produced for registration and find out as to what is the object of the transaction and whether the said transaction between the parties was something different from what the document discloses. Their power to fix the proper stamp duty on the document, does not go to the extent of discharging the functions of a Court, which could, by taking into account all the surrounding circumstances and the nature of document and the conduct of the parties and the terms agreed to between them, etc. could determine the intention of the parties under a document. This right is not conferred upon the Registering Authority. He could only find out, whether the executants who appear before him are the persons who have executed the document and on going through the document find out under what description in Schedule 1 it could be classified, and what proper stamp duty is payable thereon. As far as valuation is concerned, if it is a document which comes under Sec. 47A; and if he finds that the market value has not been properly set forth in the instrument, his first duty is to register the instrument and then refer such a document to the Collector for determining the correct market value and recover the proper duty payable thereon. In respect of any other instrument listed in Schedule I, Sec. 47A procedure cannot be followed.
21. In 1999 (2) L.W. 231 - M.Ponnusamy and others vs. The District Collector, Erode and others, the act of reference made to the Collector under Section 47-A(2) of the Indian Stamp Act after lapse of two years and retention of the sale deeds after completion of registration came up for consideration and it has been held as follows:-
"It is obvious that before registering the document, the Registering Officer has to come to a prima facie conclusion that in the instrument, the market value of the property has not been truly set forth and thereafter, complete registration and refer the same for determination of the market value. The language of Section 47-A of the Indian Stamp Act is very clear. The condition precedent for making a reference is, there must be reason for the Registering Authority to believe that the market value of the property has not been truly set forth in the document presented for registration. Hence, it follows that the reasons must be recorded, however short it may be. It is the duty of the Registering Authority to record reasons for his belief that true market value has not been set out in the document, complete registration and thereafter refer the matter to the Collector for determination of the market value of the property and the proper duty payable thereon.

22. In 2001(2) CTC 449 (DB) - The District Collector, Erode District, Erode vs. M.Ponnusamy, the said question once again came up for consideration and a Division Bench of this Court has taken into consideration the decision reported in S.P.Padmavathi vs. The State of Tamil Nadu, [1997(II) CTC 617 (DB)] (cited supra) and held that the documents presented for registration has to be registered if it sets forth market value and registering officer has power to find out whether the market value has been correctly furnished in instrument presented for registration. In the event of the Registering Officer not accepting the valuation, he shall register the document and thereafter, he can refer the same to the Collector for adjudication. In the absence of document or material produced to show that the documents in question have been undervalued, the Registering Officer cannot decide the same and apply provisions under Section 47-A of the Indian Stamp Act without forming an independent decision.