S.47-A(3) Of Indian Stamp Act Permits Collector To Issue Suo Motu Notice Within 3 Yrs From Date Of Registration Of Instrument: Punjab & Haryana HC

If the Collector has reason to believe that proper duty had not been paid, he may give the person concerned reasonable opportunity of being heard and hold an enquiry as provided under sub-section (2) and if it is found that the instrument has not been properly valued, such person shall be liable to pay the duty...Collector may suo motu or on receipt of reference from the Inspector General of Registration or Registrar of a District or on the receipt of a report of audit by the Comptroller and Auditor General of India or by any other authority authorized by the State Government in this behalf or otherwise, within a period of three years from the date of the registration of the instrument, call for and examine said instrument for the purposes of satisfying himself as to the correctness of the value of the property.

The observation was made while dealing with a petition challenging order of the Additional Deputy Commissioner-cum Collector directing petitioners to pay additional Rs. 4,35,000/- with 12% interest towards deficient stamp duty and registration fee.

The court noted that as per Section 47-A, if the Registering Officer, while registering any instrument relating to the transfer of property, has reason to believe that such property has been under-valued, he may refer the same to the Collector for determination of value, on receipt of which the Collector shall give reasonable opportunity to the parties to be heard and after holding an enquiry determine the value and make deficient payable.

As per Section 47-A (3), the Collector may suo motu or on reference from an authority authorized by the State Government, satisfy himself regarding instrument being properly valued within three years from the date of its the registration.

The court relied on the judgement of Abhinav Kumar Vs. State of Haryana 2001 (1) RCR (Civil) 91, and held that the Sub-Registrar would become functus officio after registration of the sale deed and reference, if any, has to be done immediately after registration.

In a catena of judgments it has been held that the Sub-Registrar would become functus officio after registration of the sale deed and in case he is to make reference, it has to be done immediately after registration of the instrument, as has been held in the case of Abhinav Kumar's case (supra).

In the instant case, the court held that the reference was made by the Sub-Registrar to the Collector on receipt of the audit report on 03.05.2016. Pursuant to which the petitioners were called upon to appear in proceedings before the Additional Deputy Commissioner-cum-Collector, and that notice was beyond three years which is impermissible under the act.

Even if Section 47-A (3) of the Indian Stamp Act permits Collector to issue notice suo motu, it has to be done within a period of three years from the date of registration of the instrument.

Accordingly, the impugned order by the Collector and the Commissioner was quashed and the writ petition was allowed.

Case Title: SATPAL AND OTHERS VERSUS STATE OF PUNJAB AND OTHERS 

Citation: 2022 LiveLaw (PH) 146

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