ADDL.DISTT.SUB-REGISTRAR SILIGURIversusPAWAN KUMAR VERMA AND OTHERS

                     [2013] 3 S.C.R. 163


          ADDL.DISTT.SUB-REGISTRAR SILIGURI                         A
                               V.
          PAWAN KUMAR VERMA AND OTHERS
             (Civil Appeal No. 4167 of 2013)
                         MAY 1, 2013
                                                                    B
        [G.S. SINGHVI AND KURIAN JOSEPH, JJ.]

     STAMP ACT, 1899:

   , s.2(168) read with s.47-A - 'Market value' - Registration      c
 on orders of court - Stamp duty - Held: The scheme for
 valuation for the purpose of registration would show that an
 instrument has to be valued in terms of market value at the
 time of execution of document -- Market value for the
·purpose of Stamp Act is not same as suit valuation for the         D
 purpose of jurisdiction and court fees - Where registering
 authority has any difference of opinion as to assessment on
 stamp duty of instrument presented for registration on orders
 of court, it will only be appropriate that Registrar makes a
 back reference to court concerned and court undertakes a           E
 fresh exercise after affording an opportunity of hearing to
 registering authority with regard to proper value of instrument
 for registration - Registering authority cannot be compelled
 to follow invariably the value fixed by court for the purpose of
 suit valuation - Orders of courts below are set aside - Trial
 court shall consider the matter afresh after affording an          F
 opportunity hearing to appellant and pass appropriate orders
 with regard to stamp duty for the purpose of registration of
·partition deed - Suits Valuation Act, 1887 - Registration Act,
 1908 - West Bengal Stamp (Prevention of Undervaluation of·
 Instruments) Rules, 2001-- r.3.                                    G

    In a partition suit, the trial court directed the appellant
- Additional District Sub-Registrar, who was not a party
before the court, to complete the registration on the basis
                               163                                  H
    164      SUPREME COURT REPORTS           [2013] 3 S.C.R.


A of the stamps duty as per the suit valuation. When the
  decree was presented for registration, the appellant
  observed that there was no proper valuation for the
  purpose of registration. The plaintiff approached the trial
  court which held that once the value was fixed by the
B court, Registrar could not make an attempt to reassess
  the same. The appeal filed by the Registrar was dismissed
  by the High Court.

      In the instant appeal, the question for consideration
C before the Court was while registering an instrument of
  partition, whether the registering authority under the
  Registration Act, 1908 is bound by the assessment of
  stamp duty made by the court as per suit valuation.

          Allowing the appeal, the Court
D
       HELD: 1.1 The scheme for valuation for. the purpose
  of registration would show that an instrument has to be
  valued In terms of the market value at the time of execution
  of the document. Market value for the purpose of Stamp
E Act, 1899 Is not the same as suit valuation for the purpose
  of jurisdiction and court fee. The procedures are different
  for assessment of the stamp duty and for registration of
  an Instrument. The reference to the expression 'on the
  basis of any court decision after hearing the State
F Government' appearing In r. 3 of The West Bengal Stamp
  (Prevention of Undervaluation of Instruments) Rules,
  2001, would clearly show that the suit valuation cannot
  be automatically followed for the purpose of registration.
  [para 9 and 14] [171-E-F; 173-C-E]
G
         1.2 Once the court has made the exercise to fix tho
    market value of a property, the same can be reopened or
    altered only In a process known to law. That Is not the
    situation In the Instant case where a partition suit was
H
 ADDL.DISTI.SUB-REGISTRAR SILIGURI v. PAWAN             165
                KUMAR VERMA
filed in the year 1999, compromised in the year 2001,          A
stamp value assessed on the basis of suit valuation and
the decree presented for registration in the year 2007.
The Sheristadar made a mechanical assessment of stamp
duty on 1/4th share of the suit property as per the
compromise and fixed the stamp duty accordingly. That          B
does not meet the requirement under law. The trial court
has, thus, clearly erred in directing the registration to be
done on the basis of suit valuation. [para 13-14] [173-B-
C, E-F]
                                                               c
    Nitya Hari Kundu and Others vs. State of W.B. and
Others AIR 2001 Calcutta 76 - Distinguished.

     1.3 The Suits Valuation Act, 1887 and Stamp Act, 1899
operate in different fields. tiowever, going by the scheme
                                                               0
of the Act and Rules as amended by West Bengal, this
Court is of the view that where the registering authority
has any difference of opinion as to assessment on the
stamp duty of the instrument presented for registration
on the orders of the court, it will only be appropriate that   E
Registrar makes a back reference to the court concerned
and the court undertakes a fresh exercise after affording
an opportunity of hearing to the registering authority with
regard to the proper value of the instrument for
registration. The registering authority cannot be              F
compelled to follow invariably the value fixed by the court
for the purpose of suit valuation. [para 15] .[173-G-Hi 174-
A-B]

    1.4 Accordingly, the impugned order dated
02.09.2010 of the High Court and the orders dated              G
30.03.2001 and 27.08.2007 passed by the Civil Judge
(Senior Division), are set aside. The trial court shall
consider afresh the matter after affording an opportunity
hearing to the appellant and pass appropriate orders with
regard to the stamp duty for the purpose of registration       H
    166        SUPREME COURT REPORTS                [2013] 3 S.C.R.


A of the partition deed. [para 16] [174-B-0]
                           Case Law Reference:
          AIR 2001 Calcutta 76       Distinguished          para 4
B       CIVIL APPELLATE JURISDICTION : Civil Appeal No.
    4167 of 2013.
        From the Judgment & Order dated 02.09.201 Oof the High
    Court of Calcutta in Co. No. 689 of 2008.
c         Joydep Mazumar, Avijit Bhattacharjee for the Appellant.
          V.N. Raghupathy for the Respondents.
          The Judgment of the Court was delivered by
          KURIAN, J. 1. Leave granted.
D
         2. While registering an instrument of partition, whether the
    registering authority under the Registration Act, 1908 is bound
    by the assessment of stamp duty made by the court as per suit
    valuation, is the question arising for consideration in this case.
E
        3. Petitioner is aggrieved by the order dated 02.09.2010
  of the High Court of Calcutta passed on a petition filed by the
  petitioner challenging the order passed by the Civil Judge
  (Senior Division) at Siliguri on 22.08.2007. Respondents are
F parties to a partition suit filed by the 1st Respondent herein
  before the Civil Judge (Senior Division) at Siliguri in T.S.
  (Partition) No. 70 of 1999. The Trial Court had directed the
  petitioner, who was not a party before the court, to complete
  the registration on the basis of the stamp duty as per the suit
  valuation. The suit was valued at Rs.SO lakhs for1he purpose
G of suit valuation. During the pendency of the suit, dispute was
  compromised and, accordingly, Annexure P3 - Order dated
  30.03.2001 was passed ordering:
               ''that the suit be and the same is decreed in final form
H         on compromise in terms of the joint compromise petition
     ADDL.DISTT.SUB-REGISTRAR SILIGURI v. PAWAN                 167
              Kl:JMAR VERMA [KURIAN, J.]
       dated 15.11.2000 which do form part of the decree. The          A
       parties do bear their respective costs. Parties are directed
       to file Stamp Papers as would be assessed by the
       Sheristadar for engrossing the Final Decree and for
       registration of the same. Sheristadar is directed to assess
       the amount of Stamp Paper over the valuation of the suit        B
       property at once .... "

                                             {Emphasis supplied)

       4. Subsequently, some clerical corrections were carried
 out in the order, on 12.02.2007. When the decree was                  C
 presented for registration, the same was objected to by the
 petitioner observing that there is no proper valuation for the
 purpose of registration. Aggrieved, the plaintiff took up the
 matter before the Civil Judge (Senior Division) at Siliguri
 leading to Annexure P6- Order. The learned Civil Judge (Senior        D
 Division) took the view that once the value has been fixed by
 the court, Registrar cannot make an attempt to reassess the
 same. Aggrieved, the Additional District Sub-Registrar, Siliguri,
 approached the High Court. Placing reliance on its,earlier
,decision on Nitya Hari Kundu and Others vs. State of WB.              E
 and Others 1, the High Court dismissed the petition and, hence,
 the Special Leave Petition.

    5. In order to analyse disputes in proper perspective, it is
necessary to refer to the statutory provisions governing the           F
issue. Indian Stamp Act, 1899, as amended by the West
Bengal, has defined 'market value' at Section 2 (168), which
reads as follows:
       "{16B)"market value" means, in relation to any property
       which is the subject-matter of an instrument, the price which   G
       such property would have fetched or would fetch if sold in
       open market on the date of execution of such instrument
       as determined in such manner and by such authority as

1.    AIR 2001 Calcutta 76.                                            H
    168        SUPREME COURT REPORTS                    [2013) 3 S.C.R.

A         may be prescribed by rules made under this Act or the
          consideration stated in the instrument, whichever is higher;"
                                                    (Emphasis supplied)

       6. Section 2(12) of Indian Stamp Act, 1899, as amended
B by the West Bengal, has also defined 'execution' with reference
  to an instrument to mean "signed" and "signatµre".

         7. Section 47A of Indian Stamp Act, 1899, as amended
    by the West Bengal, provided for the procedure for dealing with
c   undervaluation. To the extent relevant, the provision reads as
    follows: -
                "47A. Instruments of conveyance, etc., under-
          valued, how to be dealt with.- (1) Where the registering
          officer appointed under the Registration Act, 1908 (16 of
D         1908), has, while registering any instrument of-
          (a) agreement or memorandum of any agreement relating
          to a sale or lease-cum-sale of immovable property,

E         (b)conveyance,
          (c) exchange of property,

          (d) gift,
F         (e) partition,
          (f) power-of-attorney-
                      (i) when given for consideration to sell any
                      immovable property, or
G
                      (ii) in such other cases referred to in article 48 of
                      Schedule IA,
                  where proper stamp duty is payable on the basis
                  of market value,
H
ADDL.DISTI.SUB-REGISTRAR SILIGURI v. PAWAN                   169
         KUMAR VERMA [KURIAN, J.]
  {g) settlement,                                                    A
  {h) transfer of lease by way of assignment,
  reason to believe that the market value of the property
  which is the subject-matter of any such instrument has not
  been truly set forth in the instrument presented for               B
  registration. he may. after receiving such instrument.
  ascertain the market value of the property which is the
  subject-matter of such instrument in the manner prescribed
  and compute the proper stamp duty chargeable on the
  market value so ascertained and thereafter he shall,               C
  notwithstanding anything to the contrary contained in the
  Registration Act, 1908, in so far as it relates to registration,
  keep registration of such instrument in abeyance till the
  condition referred to in sub-section (2) or sub-section (7),
  as the case may be, is fulfilled by the concerned person.          D
   (2) Where the market value of the property which is the
   subject-matter of an instrument has been ascertained and
   the proper duty chargeable thereon has been computed
   under sub-section (1), the registering officer shall, in the      E
   manner prescribed, send to the concerned person a notice
   calling upon him to make payment of the deficit amount of
   stamp duty within such time as may be prescribed, and if
   such person makes payment of such deficit amount of
   stamp duty in the prescribed manner, the registering officer      F
 . shall register the instrument.
   (3) Where the concerned person does not make payment
   of the stamp duty as required under sub-section (2) within
   the time specified in the notice issued. under that sub-
 . section, the registering authority shall refer the matter to G
   such authority and in such manner as may be prescribed
   for determination of the market value of the property which
   is the subject~matter of such instrument and the proper
   stamp duty payable thereon:
                                                                H
    170        SUPREME COURT REPORTS                 [2013] 3 S.C.R.

A         (4) to (7) xxx xxx xxx xxx xxx xxx xxx

          (8) (a) The authority referred to in sub-section (3) may, on
          receipt of any information or otherwise, suo motu within five
          years frE>m the date of registration of any instrument, where
B         such instrument was registered on the basis of the market
          value which was set forth in the instrument or which was
          ascertained by the registering officer referred to in sub-
          section (1), call for and examine any such instrument and
          any other document relating thereto for the purpose of
          satisfying himself as to the correctness of the market value
c         of the property which is the subject-matter of such
          instrument and which was set forth in the instrument or
          which was ascertained under sub-section (2) and the
          stamp duty payable thereon.
D                (b) If, after such examination, the authority referred
          to in clause (a) has reasons to believe that the market
          value of the property wh.ich is the subject-matter of such
          instrument has not been truly set forth in the instrument or
          correctly ascertained under sub-section (2), he may, after
E         giving the parties concerned ih the instrument a reasonable
          opportunity of being heard, determine the market value of
          the property which is the subject-matter of such instrument
          and the amount of stamp duty chargeable thereon in the
          manner referred to in sub-section (5), and the difference
F         in the amount of stamp duty, if any, between the stamp duty
          so determined by him and the stamp duty already paid by
          the concerned person shall be required to be paid by him
          in the prescribed manner :"
                                                (Emphasis supplied)
G
        8. Rule 3 of The West Bengal Stamp (Prevention of
    Undervaluation of Instruments) Rules, 2001 has provided for the
    procedure to be adopted when there is undervaluation. To the
    extent relevant, the procedure reads as follows:
H
 ADDL.DISTI.SUB-REGISTRAR SILIGURI v. PAWAN                 171
          KUMAR VERMA [KURIAN, J.]
    3. Manner of determination of market value and A
    turnishing of particulars relating to any property.- (1)
    The market value within the meaning of clause [16(B)] of
    section 2 in relation to any land or any land with building
    shall, after taking into consideration the particulars referred
    to in sub-rule (2), be determined on the basis of the highest B
    price for which sale of any land or any land with building,
    of similar nature and area and in the same locality or in a
    comparable locality, has been negotiated and settled
    during the five consecutive years immediately proceeding
    the date of execution of any instrument setting forth such      c
    market value, or on the basis of any court decision after
    hearing the State Government. or on the basis of
    information, report or record that may be available from
    any court or any officer or authority of the Central
    Government or the State Government or any local authority 0
    or local body, or on the basis of consideration stated in
    such instrument for such land or land with building,
    whichever is greater."

                                           (Emphasis supplied)
                                                                    E
      9. The scheme for valuation for the purpose of registration
would show that an instrument has to be valued in terms of the
market value at the time of execution of the document. In the
instan~ case, it appears that there was no such valuation in the
Civil Court. The learned Civil Judge, as per annexure P3-0rder      F
dated 30.03.2001, directed the Sheristadar to asses the
amount of stamp paper for the valuation of the suit property.
The suit was instituted in the year 1999. The same was
compromised in the year 2001. The plaintiff filed stamp papers
as per valuation of the Sheristadar in the suit on 03.08.2004       G
and the decree was presented for registration before the
Additional Registrar on 23.05.2007. In view of the objection
raised with regard to the assessment of market value for the
purpose of registration, the plaintiff sought for clarification
leading to annexure PG-Order.
                                                                    H
     172        SUPREME COURT REPORTS                 [2013] 3 S.C.R.

A       10. The High Court has placed reliance on a single bench
  decision in Nitya Hari Kundu's case (supra). It was a case
  where the court permitted an item of a trust property to be sold
  after fixing the market value. When the Registrar refused to
  accept the valuation made by the court, a writ petition was filed
B in the High Court where it was conceded by the Registrar that:

           "14 .... it is correct to say that a Court decision permitting
           a trust estate to sell a trust property for a particular
           consideration, must necessarily be accepted as a
           determination of the market value of the property in the
c          stamp rules."

          11. However, the High Court also considered the matter
    on merits and finally held in paragraph 13, which reads as
    follows: -
D
        "13. Therefore, in interpreting the statutes if I make
        harmonious construction of S. 47A read with the Rules
        made thereunder, it will be read that valuation made by the
        Court cannot be said to be done not truly set forth and there
        is any reason to disbelieve, otherwise. If any authority does
E
        so it will tantamount to exceeding the jurisdiction made
        under the law. The authority concerned cannot sit on appeal
        over a Court decision unless appeal is preferred from such
        order which is absent herein."

F        12. It appears that the learned Civil Judge and the High
    Court only referred to the headnote in Nitya Hari Kundu's case
    (supra), which reads as follows:
        "Stamp Act (2 of 1899), S.47-A-Valuation of duty under
G       S.47-A- Valuation made by Court and sale deed sent for
        Registration S.47A is not applicable- After determination
        of value by Court, it cannot be said that there is reason
        for Registrar to believe that valuation is not correctly made
        - Registrar is bound by that valuation and has to act upon
        it."
H
 ADDL.DISTI.SUB-REGISTRAR SILIGURI v. PAWAN                   173
          KUMAR VERMA [KURIAN, J.]
      13. The court had, in fact, fixed the market value of the       A
property in that case for permitting the Trust estate to put it to
sale. However, without reference to the court; it appears that
the Collector made an independent assessment and that was
what was struck down by the court. Once the court had made
the exercise to fix the market value of a property, the same can      B
be reopened or altered only in a process known to law. That is
not the situation in the instant case where a partition suit was
filed in the year 1999, compromised in the year 2001, stamp
value assessed on the basis', of suit valuation and the decree
presented for registration in t.he year 2007.                         c
     14. Market value forthe purpose of Indian Stamp Act, 1899
is not the same as suit valuation for the purpose of jurisdiction
and court fee. The procedures are different for assessment of
the stamp duty and for registration of an instrument. The
reference to the expression 'on the basis of any court decision.      D
after hearing the State Government' appearing in Rule 3 of The
West Bengal Stamp (Prevention of Undervaluation of
Instruments) Rules, 2001, would clearly show that the suit
valuation cannot be automatically followed for the purpose of
registration. The learned Civil Judge has, thus, clearly erred in     E
directing the registration to be done on the basis of suit
valuation. The Sheristadar made a mechanical assessment of
stamp duty on 1/4th share of the suit property as per the
compromise and fixed the stamp duty accordingly for
Rs.12,50,000/-. That does not meet the requirement under law.         F

     15. The Suits Valuation Act, 1887 and The Indian Stamp
Act, 1899 operate in different fields. However, going by the
scheme of the Act and Rules as amended by West Bengal, we
are of the view that it will only be appropriate that in such         G
situations where the registering authority has any difference of
opinion as to assessment on the stamp duty of the instrument
presented for registration on the orders of the court, it will only
be appropriate that Registrar makes a back reference to the
court concerned and the court undertakes a fresh exercise after
                                                                      H
    174        SUPREME COURT REPORTS               [2013] 3 S.C.R.

A affording an opportunity of hearing to the registering authority
  with regard to the proper value of the instrument for registration.
  The registering authority cannot be compelled to follow
  invariably the value fixed by the court for the purpose of suit
  valuation.
B
        16. Accordingly, we set aside 1he impugned order dated
  02.09.2010 of the High Court of Calcutta and order dated
  30.03.2001 of the learned Civil Judge, Siliguri and order dated
  27.08.2007 of Civil Judge (Senior Division), Siliguri. The court
C of the learned Civil Judge (Senior Division), Siliguri shall
  consider afresh the matter after affording an opportunity for
  hearing to the petitioner and pass appropriate orders with
  regard to the stamp duty for the purpose of registration of the
  partition deed. This exercise should be completed within a
  period of three months from the date of receipt of this order.
D Appeal is allowed.
          17. There is no order as to costs.
   R.P.                                            Appeal allowed.