B. P. JEEVAN REDDY, J.

( 1 ) THE grievance put forward in this writ petition Is of a genera! nature. lndeed,it involves a matter of daily occurrence all over the State,

( 2 ) UNDER-VALUING the documents relating to Transfer of Property with a vi. ew to reduce the incidence of stamp- duty and registration charges, is a matter of common knowledge in this counter, and more so in the rural areas. Part of the explanation lies in the very high incidence of stamp-duty. The STAMP ACT, 1899 was initially conceived as a Revenue, -raising enactment but, in course of time, other sources of Revenue, far more extensive and yielding for greater revenues than this, have come into being with the result that the income yielded by this source is too insignificant and constitutes a very negligible percentage of the revenues of the State. However, the Government does not appear to have lost interest in this source of revenue.

( 3 ) WITH a view to defeat attempts of the parties to under-value their documents (with a view to avoid stamp-duty - and registration charges) the Government and the Inspector-General of Registration and Stamps have been issuing instructions from time to time to the subordinate registering authorities, indicating the value of lands in several areas of the State, these a r e meant as a guidance to the registering authorities. But, according to the petitioner, what the registering authorities are doing is to refuse to admit a document for registration unless the document states the value of the land as per the value fixed in the government s instructions. In other words, if for lands in a particular area, the rate is fixed in the Government s instructions at, say, Rs10/-per Sq yard the registering authorities are said to be refusing even to admit the document for registration unless tha document shows the value of the land at least at Rs. 10/- per sq. yard. This, the petitioner says, is, illegal and incompetent, and is said to be causing grave and unwarranted prejudice to the parties.

( 4 ) COMING to the facts of the present case, it is stated that the lands which are sought to be sold by the petitioner are situated in village Vattinagula- palli, in Rajendranagar Taluk. Rangareddy District. The value of the land in this village was fixed at Re1/-per sq yard, as per the instructions in-vogue prior to- 1982. In that, year, it was raised to rs. 3 per sq. yard. Again in the recent instructions issued in 1985, effective from 1-5-1985, it has been raised still further to Rs 15/ per sq. yard. The petitioner says that the fixation of value at the said rate is totally arbitrary and unrelated to the realities of the situation. The petitioner says that he is prepared to sell all the land, which he is authorised to sell, to the Government at the said rate. Indeed, he has offered that the government may acquire all the said land at one-fourth of the said rate, viz. , at the rate of Rs 3. 75 Ps. , per sq. yard. He says, he would be very happy if the Government does so. According to him, the present market value of the said land is only 0-50 Paise per sq. yard. His submission is that, in view of the Government s instructions to the Inspector General of Registration and Stamps to raise the value of lands with a view to raise more income, arbitrary enhancements have been made in values of lands all overthe state.

( 5 ) I gave notice of this matter to sri N Subba Reddy, the learned Government Pleader, and have also heard him. A counter-affidavit has also been filed on behalf of the respondents.

( 6 ) SECTION 29 of the Indian stamp ACT, 1899 specifies the person who is liable to provide the proper stamp. The said provision, however, is subject to an agreement to the contrary between the parties. Section 29 categorizes the documents into several classes and makes a particular party to the document liable in each case. So far as sale-deed is concerned, it is provided for in clause (c) of Section 29. It reads thus :"s. 29 Duty by whom payable: in the

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