The Registering Authority must refer matters for valuation before registration, and post-registration references for additional stamp duty are illegal under the Indian Stamp Act, 1899.

JUDGMENT :

1. The present writ petition has been filed for quashing the order dated 17.04.2018, passed by the Assistant Inspector General, Registration, Patna Division, Patna i.e. the respondent no.3, in Stamp Case No.183 of 2017, whereby and whereunder, he has directed the petitioner to pay a sum of Rs.1,24,680/- on the head of deficit stamp duty along with penalty charges amounting to a sum of Rs.12,468/-, totalling to a sum of Rs.1,37,148/-.

2. The brief facts of the case according to the petitioner are that the petitioner had purchased a piece of land appertaining to Khata No.56, Khesra No.488, situated at Mauza-Tetaria, Thana No.353, P.S. Udwantnagar, Circle-Udwantnagar, District-Ara and the sale deed thereof was registered by the Office of the District Sub-Registrar, Ara at Bhojpur i.e. the respondent no.5 on 09.03.2017, after payment of the requisite stamp duty and the registration charges, wherein the category of land has been shown as ‘Dhanhar’ (agricultural land). Subsequently, it appears that an inspection was conducted by the staff of the respondent no.5, whereupon it was found that the land in question falls under the developing category, hence matter was referred to the respondent no.3 by the respondent no.5, vide letter dated 02.04.2018, showing the land to be falling under the developing category. The respondent no.3 had then instituted Case No.183 of 2017, whereafter notice was issued to the petitioner and then the impugned order dated 17.04.2018 has been passed directing the petitioner to deposit a sum of Rs.1,37,148 on the head of deficit stamp duty and penalty charges.

3. The learned counsel for the petitioner has submitted that a bare perusal of the inquiry report submitted by the Upper Division Clerk, Office of the District Sub-Registrar, Bhojpur at Ara would show that wheat crops are existing in the land in question, apart from the fact that the adjacent land has also been found to be agricultural land, however, since one of the adjacent land had been found to be 400 metres from the Ara-Sasaram road, the land in question has illegally been labelled to be falling under the developing land category. Thus, it is submitted that even the inquiry made by the Office of the respondent no.5 shows the land in question is an agricultural land, hence labelling the same as a developing land is fallicious. The Ld. Counsel for the petitioner has further submitted that reference can be made by the Registering Officer for determination of the proper market value of the property in question, if he is satisfied that the classification of the property or the measurement of the structure contained in the property is wrong or the market value of the property has been set forth at a lower rate than the Guideline register of Estimated Minimum Value, only before registering the instrument in question, however, in the present case, the respondent no. 5 has referred the matter to the respondent no. 3, vide letter dated 02.04.2018, i.e. only after registration of the sale deed on 09.03.2017, hence the said reference itself is bad in law. The learned counsel for the petitioner has referred to Section 47(A)(1) of the Act, 1899, which is reproduced hereinbelow:-

"47-A (1) Where the registering officers appointed under the Registration Act, 1908 while registering any instrument of conveyance, exchange, gift, partition or settlement is satisfied that the classification of the property and/ or the measurement of the structure contained in the property which is subject matter of such instrument has been set forth wrongly or the market value of the property, which is subject matter of such instrument has been set forth at a lower rate than the Guideline Register of Estimated Minimum Value prepared under the rules framed under the provision of this Act, he shall refer such instrument before registering it to the Collector for determination of the proper market value of such property and the proper duty payable thereon.

Provided that where the ma