Cwp No. 255 of 2023 · Punjab And Haryana High Court · 2026

Judgment

#1. Through the instant petition mandamus is sought to be passed upon the Sub Registrar to register the conveyance deed as per pre-revised collector rates.

#2. Adverting to the chronological sequence of events culminating

in the execution of the conveyance deed, learned counsel for the petitioners submits that the attendant delay is solely attributable to respondent No.2 Greater Mohali Area Development Authority (GMADA). It is contended that the subsequent upward revision of the collector rate during this period of delay constitutes a supervening circumstance for which the petitioners CWP-255-2023 (O&M) 2 cannot be penalized or made to suffer.

#3. The Coordinate Bench of this Court while drawing order dated

09.01.2023 passed an interim direction upon the Sub Registrar to register the conveyance deed at the rates as were prevalent before the revision of the stamp duty vide notification dated 01.07.2022, however subject to petitioners' furnishing an undertaking that in case of their ultimately being unsuccessful in this writ petition, they will deposit/pay the difference amount within a period of four weeks thereafter. The order dated 09.1.2023 is extracted hereinafter : “Learned counsel for the petitioners inter alia would contend that the petitioners herein cannot be penalized and asked to deposit a higher stamp duty on account of lapse of GMADA. The allotment letter is dated 14.03.2019 and the stamp papers for executing the conveyance deed were purchased on 09.06.2022 and the draft conveyance deed and other relevant documents duly signed by the petitioners had been submitted with GMADA on 14.06.2022, however, the conveyance deed was not approved at the level of GMADA within prescribed time of 15 days. Subsequently, there has been a revision in the Collector's rate and on the revised rates, the petitioners are now being asked to buy enhanced stamp papers. For the delay on the part of GMADA, the petitioners cannot be penalized. He would rely upon the judgment rendered by the Supreme Court in M/s Residents Welfare Association, Noida versus State of UP and others, 2009 (14) SCC 716 and a judgment rendered by this Court in CWP No.3099 of 2018, titled as Krishan Kumar Sharma versus State of Punjab and others, decided on 16.05.2022, in support of his arguments. Notice of motion. CWP-255-2023 (O&M) 3 Mr. Deepanjay Sharma, DAG, Punjab, who is present in Court, accepts notice on behalf of the respondents-State and seeks time to file reply. Adjourned to 29.04.2023. In the meantime, let the conveyance deed executed in favour of the petitioners by GMADA be registered by respondent No.5 at the rates as were prevalent before the revision of the stamp duty vide notification dated 01.07.2022, subject to petitioners' furnishing an undertaking that in case of their ultimately being unsuccessful in this writ petition, they will deposit/pay the difference amount within a period of four weeks thereafter.”

#4. In deference to the abovesaid direction, the GMADA got the conveyance deed registered, and the petitioners paid the stamp duty on the basis of prevalent collector rate. Consequent thereupon, the core issue that falls for consideration before this Court, is whether the petitioners are liable to pay stamp duty computed on the basis of the revised collector rates, the actual sale consideration or the market value of the property. A harmonious construction of the statutory scheme under the Registration Act, 1908 and the Indian Stamp Act, 1899 (for short ‘the Act’) unequivocally establishes that the registering authority is vested with the power to examine the instrument at the time of registration to form an opinion, as to the sufficiency of the stamp duty affixed thereon. In the event that the appropriate stamp duty is found to be deficient, the registering officer is empowered to withhold/impound the sale deed, and subsequently make a reference to the Collector concerned under Section 47-A of the Act.

#5. At this juncture, it would be expedient to have a glance at Section 47-A of the Act:- CWP-255-2023 (O&M) 4 “Section 47-A for Punjab [47-A. Instruments under-valued how to be dealt with.- [(1) If the market value of any property, which is the subject of any instrument on which duty is chargeable on market value as set forth in such instrument, is less than even the minimum value as determined in accordance with the rules made under this Act, the Registering Officer appointed under the Registration Act, 1908, shall, after registering the instrument, refer the same to the Collector for determination of the market value of such property and the proper duty payable thereon; and] [(2) On receipt of reference under Sub-section (1), the Collector shall, after giving the parties reasonable opportunity of being heard and after holding an enquiry in such manner as may be prescribed by rules under this Act, determine the value or consideration and the duty as aforesaid, and the deficient amount of duty, if any, alongwith interest at the rate of twelve per cent per annum on such deficient amount, shall be payable by the person liable to pay the duty from the date of registration of the instrument relating to such property to the date of payment of deficient amount of the duty: Provided that a person shall also be liable to pay penal interest at the rate of three per cent per annum, if there was an intentional omission or lapse on his part in not setting forth the correct market value of such property.] [(3) The Collector may, suo motu, or on the receipt of a reference from the Inspector General of Registration or Registrar of a District appointed under the Registration Act, 1908 (Central Act No. 16 of 1908), in whose jurisdiction the property or any portion thereof which is the subject matter of the CWP-255-2023 (O&M) 5 instrument is situated or on the receipt of a report of audit by the Comptroller and Auditor General of India or by any other authority authorised by the State Government in this behalf or otherwise, within a period of three years from the date of the registration of an instrument, call for and examine any instrument for the purposes of satisfying himself as to the correctness of the value of the property or of the consideration disclosed and of all other facts and circumstances affecting the chargeability of the instrument or as to the true character and description thereof and the amount of the duty with which it was chargeable and if after such examination, he was reason to believe that proper duty has not been paid, he may, after giving the person concerned reasonable opportunity of being heard and after holding an enquiry in the manner provided under Sub-section (2), determine the value of the property or the consideration or the character or description of instrument and the duty with which it was chargeable and the deficient amount of duty [if any, alongwith interest at the rate of twelve per cent per annum on such deficient amount, would be payable by the person liable to pay the duty from the date of registration of the instrument relating to such property to the date of payment of deficient amount of the duty: Provided that a person shall also be liable to pay penal interest at the rate of three per cent per annum, if there was an intentional omission or lapse on his part in not setting the correct market value of such property.] (4) Any person aggrieved by an order of the Collector under sub-section (2) or sub-section (3) may, within thirty days from the date of that order, prefer an appeal before the [Commissioner] and all such appeals shall be heard and disposed of in such manner as may be prescribed by rules made under this Act. CWP-255-2023 (O&M) 6 Explanation. For the purpose of this section, value of any property shall be estimated to be the price which in the opinion of the Collector or the appellate authority, as the case may be, such property would have fetched, if sold in the open market on the date of execution of instrument relating transfer of such property.”

#6. The complete mechanism of evaluating the deficiency of stamp duty is prescribed under the relevant provisions. Therefore, this Court is of the view that a direction can be passed upon the petitioners to submit their conveyance deed with the Sub Registrar, for the latter to take decision in accordance with Section 47-A (ibid).

#7. In view of the above, the instant petition is disposed of, without commenting on the issue, as to whether petitioners are required to pay any deficient stamp duty leaving it for the appropriate authority to take a final decision, in accordance with above explained position of law. Accordingly, the petitioners are directed to appear before the Sub Registrar, Sub Tehsil Majri, District SAS Nagar (Mohali), along with the original conveyance deed within a period of 2 weeks from the receipt of a certified copy of this order. Thereupon, the authority concerned shall take a conclusive decision, in view of Section 47-A of the Act and other apposite statutory rules

#8. Pending application(s), if any, also stands disposed of.

16.07.2026 Satyawan/AK Sharma (KULDEEP TIWARI) JUDGE Whether speaking/reasoned : : Whether Reportable Yes/No Yes/No