Stamp duty on sale deeds executed under court decrees for specific performance must reflect the original sale agreement value, not the current market value at registration.

ORDER

ORDER :

SURAJ GOVINDARAJ, J.

1. The Petitioners are before this Court seeking for the following reliefs:

i. Issue a writ of certiorari quashing the order passed by the R2 bearing No. DUS/VR/04/2007-08/488 dated 30.07.2016 as per Annexure-F

ii. To issue any other writ or direction that, this Hon’ble Court deems fit to grant in the circumstances of the case, in the interest of justice and equity.

2. Sri.Munikrishnappa the husband of petitioner No.1 and father of petitioners No.2 and 3 had entered into an agreement of sale with one Sri.Khader Mohiddin on 3.4.1994 of purchase of land measuring Survey No.110/5 measuring 2 Acers 20 Guntas situated at Vartu village, Vartu Hobli by total sale consideration of Rs.4 lakhs and as on the date of the agreement had paid a sum of Rs.3,50,000/- and the balance amount of Rs.50,000/- was payable at the time of execution of the absolute sale deed.

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3. The said Sri.Khader Mohiddin not having performed his part of the contract, Sri.Munikrishnappa had filed a suit in OS No.759 of 1995 for specific performance of the contract, during the pendency of the suit Sri.Munikrishnappa had expired, and as such, the petitioners were brought on record as his legal heirs in the said suit.

4. After contest, the suit came to be decreed on 12.09.2005 which was challenged by Sri.Khader Mohiddin in RFA No.1721 of 2005 which was dismissed on 01.08.2007.

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5. Having failed both in the suit and the appeal, Sri.Khader Mohiddin came forward to execute the absolute sale deed in favour of the petitioners, which was presented for registration before respondent No.3-Senior Sub-registrar, Vartur by making payment of the stamp duty and registration fee on the value mentioned in the agreement of sale.

6. Respondent No.3-the Senior Sub-registrar did not register sale deed on the ground that the valuation for the purpose of payment of stamp duty is not proper. The valuation had to be done as per the current market value as on the date of the presentation of the sale deed, and therefore, the document was kept pending for registration, and the matter was referred to respondent No.2-the, the District Commissioner and District Registrar.

7. The petitioner not having received any notices from respondent No.2-the District Commissioner and District Registrar could not attend the proceedings before respondent No.2 and in that background the market value of the property was determined at Rs.1,25,00,000/- per acre and total value of the property was assessed at Rs.3,12,50,000/- and on the basis that the differential in the market value of Rs.3,08,50,000/- taking into consideration the sum of Rs.4 lakhs to be the value under the agreement of sale. The stamp value at 8.48% was determined to be Rs. 26,16,080/-, and the registration fee was determined to be Rs. 3,08,500/-, totalling Rs. 29,24,580/- which the petitioners were called upon to make payment.

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8. The petitioners challenged the same vide WP No.18473 of 2012 a Co-ordinate Bench of this Court vide order dated 27.06.2012 in WP No.18473 of 2012 taking into account that no opportunity had been provided to the petitioners remanded the matter to respondent No.2 for fresh consideration.

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9. Upon fresh consideration, respondent No.2 has once again passed the very same order and called upon the petitioners to make payment of the very same amount as indicated supra. It is challenging the same, that the petitioners are before the Court seeking for the aforesaid reliefs.

10. During the pendency of the above matter, the petitioner No.1 mother having expired, petitioners No.2 and 3 have been treated as her legal heirs.

11. Sri.L.M.Ramaiah Gowda, learned counsel for the petitioner, would submit that;

11.1. What has been agreed upon between Sri.Munikrishnappa and Sri.Khader Mohiddin was sale and purchase of the property for Rs.4 lakhs. He submits that, if a sale deed had been executed in the year 1994 as required to be done, then the stamp duty was required to be paid on the aforesaid amount of Rs.4 lakhs. It i