Chavobiro Foods and Feeds Pvt. Ltd. vs State of Bihar

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2024 Supreme(Pat) 470

IN THE HIGH COURT OF JUDICATURE AT PATNA
SANDEEP KUMAR, J.
CWJC No.14735 of 2023
(19.7.2024)
M/s Chavobiro Foods and Feeds Pvt. Ltd. ... Petitioner
vs.
State of Bihar & Ors. ... Respondents

Advocates:
For the Petitioner: M/s Nikhil Kumar Agrawal, Aditi Hansaria, Yash Sahay.
For the Respondents: Mr. Vikash Kumar (SC-11).

Headnote:
Stamp Act, 1899 – Section 47-A(4) – Registration of sale deed – Deficit stamp duty – Once documents which were referred to Collector by Registering Authority under Section 47(A)(I) of Act was referred and Collector has acted upon reference and has ascertained stamp duty and same has been paid by person liable to pay the stamp duty, Registering authority becomes functus officio and ceases to have any power to act further so far as document in question is concerned – In present case also document in question was referred by Sub-Registrar to A.I.G. considering nature of land as commercial – Enquiry was conducted by A.I.G. Registration under Section 47(A) (ii) and same was ordered to be paid by A.I.G. as ascertained by A.I.G. Registration and sale deed was registered – After payment of stamp duty, Sub-Registrar had become functus officio and he has no power to proceed any further with regard to document in question – Once basis of a proceeding goes, all consequential acts, actions, orders would fall on the ground automatically – Entire proceeding initiated by Registering Authority under Section 47-A(4) of Stamp Act after registration of sale deed quashed – Application allowed. (Paras 28, 40, 41 and 42)
Stamp Act, 1899 – Section 47-A(ii) – Power to file appeal – Sub-registrar is a person aggrieved who can be allowed to prefer appeal against order of Collector (A.I.G. Registration herein) – Sub-Registrar, on behalf of State can maintain appeal even though pre-requisites deposit for filing appeal is not applicable to State – There is no provision in Stamp Act which provides for condonation of delay by Commissioner in filing appeal – In present case, though appeal was maintainable, limitation could not have been condoned by Commissioner as there is no provision of condonation of delay in Stamp Act – Appeal is barred by limitation. (Paras 30, 31, 33 and 35)

Sandeep Kumar, J.—The present writ petition has been filed by the petitioner for seeking the following reliefs:—

(i) To issue an appropriate writ/order/direction in the nature of certiorari quashing and setting aside the entire proceeding initiated by the registering authority under Section 47-A(4) of the Stamp Act after registration of the sale deed dated 14.07.2016 with respect to the land in question being Thana No. 131, Tauzi no. 482, Khata Nos. 144 etc, KhesraNo. 6668, 7086, 8895, 109, situated at Mauza - Semra and Mauza Chakbana, Village Semra, Thana Chakiya, District Champaran measuring 1450 decimal; East.

(ii) For setting aside the Order dated 31.01.2022 [Anx- P/3] passed by the Learned Commissioner, Tirhut Division, in Stamp Appeal Case No. 25/19 whereby and whereunder the order dated 07.12.2016 passed by the AIG Registration, Tirhut Division, was set aside and the matter was remanded back with direction to reassess the Stamp Duty

(iii) For setting aside the Order dated 02.08.2022 [Anx- P/4] passed by the Respondent No. 4 in Stamp Case No. 29/16- 17 whereby and whereunder the value of the land in question was recalculated and the deficit stamp duty was assessed as Rs. 3,24,99,040/- and also quash the consequential demand notice dated 05.08.2022.

(iv) For setting aside the Order dated 08.05.2023 [Anx- P/7] passed by the Commissioner, Tirhut Division, Muzaffarpur in Stamp Appeal No. 237/2022.

2. The brief facts of the case is that the Petitioner had paid the deficit Stamp Duty to the tune of Rs. 2,28,560/- as assessed by the A.I.G. (Registration), Tirhut Division, Muzaffarpur vide Order dated 07.12.2016, whereafter the Sale Deed was registered on 23.12.2016. However, the Sub- Registrar, Chakia challenged the said Order dated 07.12.2016, passed by the A.I.G. by filing the Stamp Appeal No. 25 of 2019 (i.e. after a delay of more than two years), which was allowed by the Learned Commissioner, Tirhut Division, Muzaffarpur vide Order dated 31.01.2022 and the matter was remanded back to the A.I.G. leading to passing of the Order dated 02.08.2022, by the A.I.G. whereby deficit stamp duty to the tune of Rs. 3,57,48,944/- has been assessed, which was challenged by the Petitioner by filing Stamp Appeal No. 37 of 2022, however the same was dismissed vide Order dated 08.05.2023 passed by the Commissioner.

3. The issue pertains to the interpretation and proper implementation of Section 47-A of the Stamp Act.

Arguments advanced by the petitioner.

I. Lack of jurisdiction

4. The power of registering authority to ascertain deficit stamp duty has been provided under Section 47A(1) of the Stamp Act. Reference can be made with regard to determination of classification of the property, only before registration of sale deed in question and not thereafter. Reliance is placed on the decision of Shahnaz Begam vs. The State of Bihar & Ors; CWJC No. 19517 of 2016.

5. After registration of an instrument, the only proceeding that can be initiated is under Section 47A(3) of the Act which provides power to the Collector to initiate the said proceeding, suo-moto, within a period of two years from the date of the registration of such instrument. However, such suomoto power can be exercised by the Collector with respect to only those instruments which have not been referred to by the Registering Authority under Section 47A(1) of the Act.

6. Once the deficit stamp duty has been ascertained by the Collector under reference from the Sub-Registrar under Section 47-A(1) of the Act and the same has been paid by the person liable to pay the duty, the said Registering Authority becomes functuous officio and ceases to have any power under the Act so far as the registered document is concerned.

7. After the sale deed was presented for registration, the same was referred by the Sub-Registrar to the A.I.G., Registration under Section 47-A(1) considering the nature of the land as commercial. The A.I.G., Registration, after conducting a spot inquiry as stipulated under Section 47