The main legal point established in the judgment is the interpretation of statutory provisions and the legislative intent regarding the registration of documents and the imposition of stamp duty under the Indian Stamp Act.

Judgment

BANERJEE, J.

( 1 ) THE State Government is in appeal against the judgment of the High Court wherein Article 5 (i) of the Indian Stamp Act stands challenged together with a circular being No. 67296/c1/88 dated 9th December, 1988: whereas the High Court has approved the validity of the statutory provisions but it has expressed its negation to the validity of the circular dated 9th December, 1988 and it is in that regard that the State has come up in appeal before this Court by the grant of special leave.

( 2 ) SINCE the challenge is restricted to the circular as noticed above the scope of the appeal also thus stands restricted and limited.

( 3 ) BEFORE, however, adverting to the rival contention, two basic canons of statutory interpretation ought to be noted : firstly avoidance of redundancy by the legislature and the second count pertains to the limitation of exercise of jurisdiction so far as the law court is concerned since the law court ought not to embark upon the Inquiry of legislative intent.

( 4 ) THE learned senior advocate Mr. Mohan appearing for the State Government in support of the appeal very strongly contended that by reason of the provisions of Section 27 read with Section 35, question of their being any embargo in the matter of issuance of circular directing the Inspector General of Registration to have an inspection of building prior to registration does not and cannot arise and there is existing appropriate legislative sanction in that regard. The submission on the first blush seems to be rather attractive and it is on this score that Sections 27 and 35 ought to be noticed for ascertaining the true scope and effect. The Sections read as below :"section 27 Facts affecting duty to be set forth in instrument:- The consideration (if any) and the market value and all other facts and circumstances affecting the charge- ability of any instrument with which it is chargeable shall be fully and truly set forth therein. ""section 35 Instrument not duly stamped inadmissible in evidence, etc. No instrument chargeable with duty shall be admitted in Evidence for any purpose by any person having by law or consent of parties authority to receive evidence, or shall be acted upon, registered or authenticated by any such person or by any public officer, unless such instrument is duly stamped: Provided that : -. . . . . . . . . . .

( 5 ) HAVING regard to the language of the Sections the learned senior Advocate contented that the expression used by the legislature is registered as such it is a step before registration and thus empowering the authority to refuse registration. On a close scrutiny of the statute, however, we record our inability to concur with the submissions, more so by reason of the provisions of Section 47a, read with Rule 4 of the Tamil Nadu Stamp (Prevention of Under-Valuation of Instruments) Rules, 1968 framed under Sections 47a and 75 of the Indian Stamp Act. Section 47a has been engrafted in the statute book for the State of Tamil Nadu only, obviously to meet the exigencies of the situation in the State, Section 47a reads as below:"section 47a: Instrument of conveyance etc. , under-valued how to be dealt with- (1) If the registering officer appointed under the Indian Registration Act, 1908 (Central Act XVI of 1908) while registering any instrument of conveyance, exchange, gift, release of benami right or settlement, has reason to believe that the market value of the property which is the subject matter of conveyance, ex- change, gift, release of benami right or settlement, has not been truly set forth in the instrument he may, after registering such instrument, refer the same to the collector for determination of the market value of such property and the property duty payable thereon. (Emphasised) (2) On receipt of a reference under sub- section (1), the collector shall, after giving the parties a reasonable opportunity of being heard and after holding an enquiry in such manner as may be pre- scribed by