TMI Blog2019 (11) TMI 1820X X X X Extracts X X X X X X X X Extracts X X X X ..... as well as the principles propounded by the Hon'ble Supreme Court in RAMESH CHAND BANSAL ORS. VERSUS DISTRICT MAGISTRATE/COLLECTOR GHAZIABAD ORS. [ 1999 (5) TMI 604 - SUPREME COURT] and RAVINDER NARAIN AND ANR. VERSUS UNION OF INDIA [ 2003 (2) TMI 515 - SUPREME COURT] determination of the value of the property. The mechanical approach of the Collector only to follow the circle rate is hereby deprecated. It was held in the case of Ramesh Chand Bansal Ors. vs. District Magistrate/Collector that the impugned circular and the notice to be valid. Notice has already been issued to the appellants and they have an opportunity to contest the valuation prima facie fixed under the said circular and to prove to the contrary in the proceedings before the Collector. It was held in the case of Ravinder Narain Anr. vs. UOI that on the basis of the instances pressed into service by the acquiring authority and the land owner-appellants, the average can be fixed @ ₹ 61.50/- for both the notifications in question by adopting the extent of plotted area as done by the High Court which appears to be appropriate in the circumstances of the case. Therefore, the rate per sq. yard can be fixed @Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uate at 66-A, Friends Colony (East), New Delhi-110065, a sale deed has been entered into between the respondent (original petitioner) and the purchaser for Rs. 36,00,00,000/-. The sale deed is dated 12th September, 2016 and the stamp duty paid by the respondent (original petitioner) is Rs. 2,16,00,000/-. The registering authority objected that there was under valuation in the transaction so far as payment of stamp duty under Indian Stamp Act, 1899 is concerned because prevailing circle rate is higher. The registering authority referred the matter to the Collector for fixing the market value under the provisions of the Indian Stamp Act, 1899 especially, under Section 47A thereof [as amended by the Indian Stamp (Delhi Second Amendment) Act, 2001]. Collector vide order dated 22nd July, 2017 has passed an order on the basis of the circle rate. No sale deeds of the surrounding properties were ever produced by the Collector and no copies of the same were given to the respondent (original petitioner). The documents and the sale deeds which were relied upon by the Collector, were never given to the respondent (original petitioner) and the market value was decided for the purpose of determi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ination of valuation to determine stamp duty. Unless this presumption of determination of value of property on the basis of the circle rate is dislodged by the respondent (original petitioner), the valuation on the basis of circle rate is binding upon the respondent. This aspect of the matter has not been properly appreciated by the learned Single Judge and hence the judgment and order dated 14th March, 2019 passed by the learned Single Judge in W.P. (C) 3587/2018 deserves to be quashed and set aside. (iv) It is also submitted by the counsel for appellant that the respondent (original petitioner) has failed to give any evidence that why the determination of value on the basis of circle rate should not be followed in the present case. In the absence of any evidence given by the respondent, the determination of valuation on the basis of circle rate is binding upon the respondent. 4. Arguments canvassed by respondent: (i) Per contra, the counsel appearing for the respondent submitted that no error has been committed by the learned Single Judge while deciding W.P. (C) 3587/2018 and remanding the matter to the Collector for considering the issue afresh. (ii) The main contention advanced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ors. vs. LAQ (1995) 2 SCC 305; Kausalya Devi Bugro Ors. v. LAQ, Aurangabad Anr. (1984) 2 SCC 324; Special Land Acquisition Officers Anr. vs. R.K. Rafiq Saheb (2011) 7 SCC 714; Ravinder Narain Anr. vs. UOI (2003) 4 SCC 481. (vii) On the basis of the aforesaid decisions, it has been submitted by the counsel for respondent that the valuation of the property depends on verities of factors like- (a) the width of the road upon which the property is situated; (b) the nature and use of the adjacent property; (c) the use of the property in question; (d) the area, locality and location of the property in question; (e) the price agreed upon by the parties; (f) whether it was a distress sale; and (g) whether local prices had escalated or reduced. (viii) The counsel further submits that market rate depends upon the existing factors, whereas, the circle rates are always older in point of time. The circle rates are prescribed in one condition, whereas, exact market rate (and therefore the market value) depends upon the permutation and combination of varieties of myriad factors including those stated hereinabove and therefore whenever any dispute arises about the determination of value, the same o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registering any instrument transferring any property, has reason to believe that the value of' the property or the consideration, as the case may be, has not been truly set forth in the instrument, he may, after registering such instrument, refer the same to the Collector for determination of the value or consideration, as the case may be, and the proper duty payable thereon. (2) On receipt of a reference under sub-section (1), the Collector shall, after giving the parties a reasonable opportunity of being heard and after holding an enquiry in such manner as may be prescribed by rules made under this Act, by order, determine the value of the property or the consideration and the duty aforesaid, and the deficient amount of duty, if any, shall be payable by the person liable to pay the duty and, on the payment of such duty, the Collector shall endorse a certificate of such payment on the instrument under his seal and signature. (3) The Collector may, suo motu within two years from the date of registration of any instrument not already referred to him under sub-section (1), call for and examine the instrument for the purpose of satisfying himself as to the correctness of its valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot area of the respondent. (vi) Looking at the sale deeds upon which the sole reliance is placed by the Collector, it appears that even in those sale deeds, the sale consideration was lesser than the valuation arrived at on the basis of the circle rates. Moreover, for a smaller plot area, higher sale consideration can be fetched by the seller and, therefore, whenever any comparison is to be made for arriving at a value for the plot in question, as far as possible the sale deed of the plots having similar measurements should have been kept in mind. Looking at the sale deeds upon which the reliance is placed by the Collector, it appears that for a smaller plot (which is 10% of the plot in question), the valuation of the sale price, was at a rate lesser than the circle rate meaning thereby that for a bigger plot, sale consideration, could be further lesser, than the circle rate. (vii) The counsel for the appellant has contended that if the Collector had given the sale deeds upon which he was relying upon all these arguments could have been canvassed by the respondent (original petitioner), in detail, before the Collector and hence also the order passed by the Collector dated 22nd July ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lows: Explanation-The 'guidelines register' supplied to the officers is intended merely to assist them to ascertain prima facie, whether the market value has been truly set forth in the instruments. The entries made therein regarding the value of properties cannot be a substitute for market price. Such entries will not foreclose the enquiry of the Collector under Section 47-A of the Act or fetter the discretion of the authorities concerned to satisfy themselves on the reasonableness or otherwise of the value expressed in the documents. 23. This Explanation also will have to be read in conjunction with Explanation to Section 47-A of the Indian Stamp Act (as amended by T.N. Act 24 of 1967) which reads: Explanation.--For the purpose of this Act, market value of any property shall be estimated to be the price which, in the opinion of the Collector or the Chief Controlling Revenue Authority or the High Court, as the case may be, such property would have fetched or would fetch, if sold in the open market on the date of execution of the instrument of conveyance, exchange gift, release of benami right or settlement. 24. This scheme of the enactment and the Rules contemplate that gu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ature, then the sale consideration fetched is bound to be different and if the adjacent property is a public convenience constructed by the Government, then the sale consideration fetched by the property in question can be entirely different. The existing market factors varies time to time, whereas, the circle rates are usually prescribed on a much prior point of time. In the facts of the present case, the circle rates were prescribed by the Government on 23rd September, 2014 whereas the sale deed has been entered into in the year 2016. The urgency of the sale by the owner of the property and if it is a distress sale. The need of the purchase of the property as, e.g., if the adjacent property owner wants to purchase at any cost the neighbouring property, the price the owner will fetch will be higher. (h) Reference may be made to the decision in Thakur Kuldeep Singh v. Union of India, (2010) 3 SCC 794, relevant paragraphs whereof are reproduced hereunder: 21. We accept that in view of the purpose for which the circle rates have been notified by the Ministry of Urban Affairs and Employment, market value of a plot cannot be determined solely on the basis of the circle rates. On the ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout appreciating the varieties of the factors, which govern the market forces, and solely on the basis of the circle rates, the valuation to determine stamp duty has been arrived at by the Collector vide order dated 22nd July, 2017 as well as by the Additional District Judge--appellate Authority vide order dated 16th March, 2018 and hence, no error has been committed by the learned Single Judge while quashing and setting aside these orders and no error has been committed by the learned Single Judge in remanding the matter to the Collector for reconsideration of the issue of determination of the valuation of the property for the purpose of the Act. (ix) The judgments upon which the reliance has been placed by the counsel for appellant are of no help to the appellant mainly for the reasons that: (a) The facts, illustrated hereinabove, make the present case different from the facts of the case upon which reliance has been placed by the appellant, and hence are of no assistance to the case of the appellant. (b) The reliance of the counsel on State of Haryana v. Manoj Kumar (supra) is misconceived since the Supreme Court only propounded the jurisdiction of the High Court under Article ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in a nationalised bank, since the matter is being remanded to the Collector for fresh determination of the valuation, and if any additional stamp duty is required to be paid by this respondent (original petitioner), the amount of Rs. 1,06,87,791/- will be adjusted towards the same. If more amount is to be deposited by the original petitioner, the aforesaid amount will be adjusted. If lesser amount is to be paid by the original petitioner, rest of the amount will be returned to the original petitioner. 9. Appellant as well as original petitioner can move appropriate application for withdrawal of the amount in this Letters Patent Appeal. They are also permitted to move an application in this Letters Patent Appeal in case of any difficulty. 10. The Collector will determine value of the property in question, in accordance with law and keeping in mind the aforesaid decisions of the Hon'ble Supreme Court and will keep in mind the principles mentioned in this judgment for arriving at value of the property. 11. Both the parties are at liberty to adduce their evidences before the Collector in the proceedings under section 47-A(2) of the Act, 1899 to be read with other provisions of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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