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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
M.S. KARNIK, ALOK ARADHE, C.J.
Collector of Stamps – Appellant
Versus
Pinak Bharat & Co. – Respondent
JUDGMENT :
M.S. Karnik, J.
1. These Appeals challenge the order dated 27th March 2019 passed by the learned Single Judge of this Court. The appellant-Pinak Bharat & Co. in Commercial Appeal (L) No.28626 of 2023 is aggrieved by that part of the impugned order which stipulates “if the sale price is at or below the valuation obtained, then the valuation will serve as the current market value” whereas the Appellant- the Collector of Stamps, Mumbai City in Commercial Appeal No.14 of 2024 challenges that part of the impugned order whereby it is held that the Collector of Stamps cannot determine true market value of a property sold in public auction conducted by Court and the valuation report obtained by the Court should be accepted. Since the common order is under challenge, the present appeals are disposed of by a common judgment and order.
2. We refer to the facts in Commercial Appeal (L) No.28626 of 2023. The Appellant No.1-Pinak Bharat & Co. (hereinafter referred to as “Pinak Bharat & Co.” for short) is a partnership firm and the Original Judgment Creditor. The Appellant No.2 is the partner of Appellant No.1 as well as the partner of M/s. Win Win Associates, a sister concern of Pinak Bh
A public auction conducted by the court is the most transparent method for determining market value, and the Collector of Stamps cannot reassess the value determined by the court.
A court-monitored public auction establishes the true market value of property, which cannot be reassessed by the Collector of Stamps.
Court auctions dictate the valid market value of properties, precluding stamp authorities from imposing differing assessments of duty.
Stamp duty – In case of a public auction monitored by court, discretion would not be available to Registering Authority under Section 47A of Indian Stamp Act, 1899.
The Collector of Stamps must adhere to previous valuations and cannot apply new ASR for determining market value in cases remanded for fresh adjudication.
Stamp duty must be based on the value in the Sale Certificate issued by a Government Undertaking, not on an independently assessed market value by Stamping Authorities.
Registration Authorities cannot question court-determined property valuations under Section 47-A of the Indian Stamp Act, as it undermines judicial authority.
The valuation of property fixed by a court is final and cannot be challenged by registration authorities under Section 47-A of the Indian Stamp Act, as it undermines judicial authority.
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