Registration Department officials cannot demand deficit stamp duty from those who present instruments of conveyance for registration merely on the basis of audit objections and without conducting an enquiry to render a finding on the market value of the immovable property concerned, the Madras High Court Bench here has ruled.
Order
set aside
Justice M. Venugopal passed the order while allowing a writ petition filed by one J. Jeyaraj and setting aside an order passed by Tirunelveli District Registrar on March 13, 2013 calling upon the writ petitioner to pay deficit stamp duty of Rs. 1.70 lakh as a pre-condition to release a rectification deed executed in his favour way back in November 2011.
“Find market value”
Referring to the provisions of the Indian Stamp Act, 1899 and the Tamil Nadu Stamp (Prevention of Undervaluation of Instruments) Rules, 1968, the judge said that the officials were “bound to cause an enquiry and render a finding on the market value of the property. A mere reference to an audit objection, which is no evidence of market value, would only show non-application of mind.”
He, further, stated that “in the instant case, no proceedings have been initiated in terms of Section 47A of the Indian Stamp Act. Per contra, straight away the order demanding deficit stamp duty has been passed…. which bristles with legal infirmities in the eye of law. Therefore, the District Registrar is directed to pass a fresh, reasoned and speaking order on merits and in accordance with law.”
