The main legal point established in the judgment is the significance of circle rates as an indicator for proper stamp duty and the role of the Collector in determining the value and duty payable on property transactions.

CM No.3100/2016 (of petitioner for modification/clarification of the judgment dated 23rd December, 2015).

1. We heard the senior counsel for the petitioner/applicant, counsel for the respondents Govt. of NCT of Delhi (GNCTD) and counsel for the respondent Municipal Corporation of Delhi (MCD) and reserved order on 19th February, 2016 with liberty to the counsels to file written submissions within one week. No written submission has been filed.

2. The senior counsel for the petitioner/applicant:

(i) contended that the direction contained in para 22 (A) & (B) of the final judgment dated 23rd December, 2015 to the Registrar / Sub-Registrar entrusted with the responsibility of registration of the document to “notify the parties presenting the instrument/document for registration that the consideration set forth in the instrument and the stamp duty computed on the basis thereof is less than the valuation as per the circle rates” and to “give them an opportunity to amend the document/instrument, to bring the valuation thereof for the purpose of payment of stamp duty, in consonance with the circle rates and make up deficiency in stamp duty” is not sanctioned by Section 47-A of the Indian Stamp Act, 1899 or by any other law. It is contended that circle rates being in public domain are known to each and every person and the directions contained in para 22(A) & (B) will delay and complicate the process of the parties presenting the instrument / document for registration and also add to the administrative burden of the Registering Officer who would be required to give “notice” in all cases of deemed undervaluation;

(ii) contended that the directions contained in para 22(C) of the judgment dated 23rd December, 2015 directing the Registering Officers, to in all cases of deemed undervaluation, after registering the document, forward the same to the Collector of Stamps for determination of value and the proper stamp duty, takes away the discretion conferred by Section 47-A of the Act in the Registering Officers;

(iii) suggested that instead of forwarding the document/instrument in original to the Collector of Stamps, it be directed that the original would be returned to the parties for securing home loans on the basis thereof and/or for creating equitable mortgage and the adjudication of stamp duty be done by the Collector of Stamps on the basis of a copy of the document / instrument;

(iv) seeks clarification that the procedure prescribed in Section 47-A of the Act is applicable only qua the stamp duty and not qua the transfer duty under the Municipal Corporation of Delhi Act, 1957 (MCD Act) which is payable only on the amount or value of the consideration for sale as set forth in the instrument.

Modifications/clarifications to the aforesaid effect are sought.

3. As far as the aspect of, ‘notifying’ the parties presenting the instrument/document for registration of the stamp duty paid/computed thereon being not in consonance with the circle rates is concerned, we have not directed any notice in writing to be given by the Registering Officer to the parties in this regard. All that we have observed is that the parties, before the Registering Officer proceeds on the premise that proper stamp duty has not been paid thereon, would be given an opportunity to make up the deficiency in stamp duty, so that the procedure prescribed for computation of the correct stamp duty is not commenced without the parties having an opportunity to make up the said deficiency. We therefore do not feel the need for any clarification as is sought in this respect.

4. As far as the contention, that our directions take away the power of the Registering Officer to satisfy himself whether the document is properly stamped, is concerned:

(A) We may record that though Section 47-A of the Stamp Act as applicable to Delhi empowers the Registering Officer, if has reason to believe that the value of the property or the consideration has not been truly set forth in the instrument/docu