High Court · 2007

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED 26-11-2007CORAM:THE HONOURABLE MR.JUSTICE P.JYOTHIMANIW.P.No.35034 of 2007 M/s.Cottage Industries Exposition Limited,No.118, Nungambakkam High Road,Chennai 600 034,Rep. by its Financial Manager,Mr.Farooq Ahmed Quazi.. . Petitioner Vs.1.The Chief Controlling Revenue Authority, (Inspector General of Registrations) No.20, Santhome High Road, Chennai 600 004.2.The District Revenue Officer (Stamps) Collectorate, Singaravelar Maligai, Rajaji Salai, Chennai 600 001.3.The Sub Registrar, Anna Nagar, Chennai 600 040.. . RespondentsThe writ petition filed under Article 226 of the Constitution ofIndia to issue a writ of Mandamus directing the first respondent totransfer the records in Appeal No.18573/N1/03, to the thirdrespondent and direct the third respondent to declare that thepetitioner is entitled to the benefits of the Samadhan Scheme underG.O.Ms.No.95/2007 dated 23.04.2007 and G.O.Ms.No.142/2007 dated30.07.2007 and consequently to release the document No.350/2002 tothe petitioner on compliance of the requirements of the GovernmentOrders.For Petitioner : Mrs.Meera Gupta for M/s.Surana & SuranaFor Respondents : Mr.K.Balu AGP https://hcservices.ecourts.gov.in/hcservices/ ORDERHeard the learned counsel appearing for the petitioner as wellas the learned Additional Government Pleader who has taken notice onbehalf of the respondents.2. It is the case of the petitioner that the property located atPlot No.1429, 17th Main Road, Anna Nagar, Chennai originallybelonged to one Mrs.Gokila Ramakrishnan under whom the petitionerwas a lessee from 1987 onwards. Subsequently, an agreement of salewas entered on 22.03.1995 between Mrs.Gokila Ramakrishnan andCottage Industries Exposition Limited, the petitioner herein fixingthe sale consideration at Rs.26,50,000/-. A sum of Rs.10,00,000/-was paid as an advance and the balance sum of Rs.16,50,000/- has tobe paid at the time of execution of the sale deed. 3. Since the amount is more than Rs.10,00,000/- it requires noobjection certificate from the Income Tax department. When thepetitioner as well as their vendor approached the Income Taxdepartment, the department found fault with the sale considerationas agreed between the parties as much lower than the market valueand an order was passed under Section 269 UD(1) of the Income TaxAct. Against which, the petitioner has filed W.P.No.9062 of 1995.The said writ petition was partly allowed upholding the pre-emptivevesting of the said property in the Central Government with effectfrom the date of the order i.e. on 26.06.1995. However, in respectof the portion of the order directing delivery of possession of theproperty and consequential action of taking forcible possession wasquashed. 4. By invoking Section 269 UE(2), the department directed thepetitioner and its vendor to deliver vacant possession of theproperty. Against which, the petitioner has moved another writpetition in W.P.No.15711 of 1995 to quash the impugned direction andalso for a direction that the petitioner is entitled to continue inpossession. The vendor of the petitioner also filed a writ petitionin W.P.No.2258 of 1996 questioning the action of the Income Taxdepartment initiating under Section 269 UH(1) of the Income Tax Act.Writ Appeals were filed in respect of the portion regarding preemptive vesting of the said property in W.A.Nos.107 of 1996 and 1347of 1995. Writ Petition and Writ Appeals were heard together and acommon judgment was passed on 12.12.2000 directing the appropriateauthority to issue direction in terms of Section 269 UH(2) of IncomeTax Act. Pursuant to the said direction of the Division Bench, theappropriate authorities issued "no objection certificate" permittingthe vendor to sell the property in question to the petitioner for asale consideration of Rs.26,50,000/-. Subsequently, the sale deedcame to be registered on 04.02.2002 as Document No.350 of 2002 in https://hcservices.ecourts.gov.in/hcservices/ the office of the Sub Registrar, Anna Nagar, namely the thirdrespondent herein subject to Section 47(A) Reference. The matter wasreferred to Stamp Collector under Section 47(A)(1)Stamp Act. Thesecond respondent, who is the authority to decide the valuationafter hearing the objections of either parties, by order dated13.02.2003, fixed the value of the property at Rs.97,67,232/- andafter deducting the stamp duty already paid, the Stamp Collectordirected the petitioner herein to pay a sum of Rs.9,25,249/- beingthe deficit stamp duty. It was as against the order of the secondrespondent, the petitioner has preferred an appeal to the firstrespondent under Section 47(A)(10) of the Stamp Act and the saidappeal was numbered as No.18573/NI/03.5. According to the petitioner, the first respondent heard theobjections raised by the petitioner on various grounds. Against theorder of the District Revenue Officer, namely the second respondent,appeal was heard as early as 2004 and according to the petitioner,the first respondent, the appellate authority, has not passed anyorder till date. In these circumstances, the petitioner has filedthe present writ petition for a direction against the firstrespondent to transfer the records in Appeal No.18573/N1/03 to thethird respondent and direct the third respondent to declare that thepetitioner is entitled to the benefits of the Samadhan Scheme underG.O.Ms.No.95/2007 dated 23.04.2007 and G.O.Ms.No.142/2007 dated30.07.2007 and consequently to release the document No.350/2002 tothe petitioner on compliance of the requirements of the GovernmentOrders.6.Mr.K.Balu, Additional Government Pleader, submits that basedon the appeal filed by the petitioner dated 16.04.2003 which is astatutory appeal filed under Section 47(A)(10) of the Stamp Act, thefirst respondent has passed an order dated 02.03.2004 inNo.18573/N1/03. Further the petitioner has categorically stated inthe affidavit filed in support of the petition that no such orderhas been passed and no such order has been communicated to thepetitioner by the first respondent, even though it is admitted thatin the year 2004 itself an enquiry was conducted. 7. Section 47(A)(10)of the Indian Stamp Act, 1899 reads asfollows;"Any person aggrieved by an order of theauthority prescribed under sub-section (5) or theChief Controlling Revenue Authority under sub-section (6) may, within such time and in suchmanner, as may be prescribed by rules made underthis Act, appeal to the High Court.Explanation;- For the purpose of this Act,market value of any property shall be estimatedto be the price which, in the opinion of the https://hcservices.ecourts.gov.in/hcservices/ Collector or the Chief Controlling RevenueAuthority 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 ofexecution of the instrument of conveyance,exchange, gift, release of benami right orsettlement."The Rules under Section (9)(5)(a) of the Tamil Nadu Stamp(Prevention of Undervaluation of Instruments) Rules provides appealagainst the order of the authority passed under Section 47-A (10) ofthe Act and that appeal has to be filed within a period of twomonths from the date of final order passed by the authority.8. The said rule provides various procedures to be followed forthe purpose of filing an appeal and Rule 10 provides the procedurefor disposal of the said appeal by the High Court. Even though thelearned Additional Government Pleader is able to produce the orderof the first respondent dated 02.03.2004, there is no evidence toshow that the said order has been communicated by the firstrespondent to the petitioner especially in the light of thecategorical stand taken by the petitioner in the affidavit filed insupport of this petition that no such appellate authorities orderhas been communicated to the petitioner. In view of the same, thelearned Additional Government Pleader would fairly submit that thefirst respondent would communicate the appeal order dated 02.03.2004to the petitioner within the specified time and thereafter thepetitioner may be directed to approach the appellate authority asper the provision of the Stamp Act especially 47(A)(10) of the Act.In view of the same, the writ petition is disposed of with adirection to the first respondent to communicate the order of thefirst respondent dated 02.03.2004 passed in No.18573/N1/03 underSection 47(A)(5) of the Indian Stamp Act to the petitioner within aperiod of two weeks from the date of receipt of a copy of thisorder. Thereafter, the petitioner is entitled to file an appeal ascontemplated under Section 47(A)(10) of the Indian Stamp Act withinthe time stipulated by the Rules. No costs. Sd/Asst.Registrar/true copy/Sub Asst.Registrar https://hcservices.ecourts.gov.in/hcservices/ jikrTo1.The Chief Controlling Revenue Authority, (Inspector General of Registrations) No.20, Santhome High Road, Chennai 600 004.2.The District Revenue Officer (Stamps) Collectorate, Singaravelar Maligai, Rajaji Salai, Chennai 600 001.3.The Sub Registrar, Anna Nagar, Chennai 600 040.+1cc to M/s.Surana & Surana, Advocates Sr 69962BK (CO)km/3.12.W.P.No.35034 of 2007