Value of property fixed by the court in court auction is the true value of property for determining stamp duty.

This writ petition has been filed challenging the proceedings of the third respondent dated 02.04.2007 seeking to quash the same as illegal, invalid and without jurisdiction and against the principles of natural justice.

2. It is the case of the petitioner that a company by name M/s.Telematics Systems Limited was ordered to be wound up by this Court in C.P.No.239 of 1997 vide order dated 18.07.2001. Pursuant to the same, the Official Liquidator took possession of the entire movable and immovable assets of the company. The petitioner company has offered Rs.13,55,00,000/-. The petitioner was accepted as a highest bidder and this Court by order dated 011. 2006 in Application No.834 of 2006 permitted the Official Liquidator to sell the entire property. Pursuant to the same, the petitioner company also remitted the entire sale consideration of Rs.13.55 crores in two instalments. Thereafter, the petitioner presented the document for registration.

3. The further case of the petitioner is that the value fixed by this Court in Court auction has to be taken into consideration and the respondent has to register the document and act on it. On the contrary, the third respondent, vide order dated 02.04.2007, proceeded to refer the matter under Section 47A of the Stamp Act stating that the amount fixed in the document of Official Liquidator and the prevailing market value in and around the places of the property in question are varying from Rs.1,000/- to Rs.1,200/-and the guideline value of Rs.15,24,60,000/-has to be taken into account and the same has been challenged by the petitioner in this writ petition.

4. The respondent has filed counter and it is contended that the date of execution of Document No.1198 of 2007 is 28.03.2007 and as per sub-section (6) of Section 2 read with the explanation to Section 47(A) of the Indian Stamp Act, the stamp duty has to be collected based on the market value as per guidelines on the date of the execution of the document; the value fixed by the Guideline Value Fixation Committee on 01.04.2003 for Mount Poondamallee Road was Rs.549/-per square foot and the value has been revised by the same Committee on 112. 2004 for the same property vide Chennai Zones Deputy Inspector General of Registration in his order No.9359/v/2004 dated 012. 2004 based on the order of the Inspector General of Registration and G.O. Ms.No.249/95 dated 17.07.1996 as Rs.1,000/-per sq. ft. from 112. 2004; further higher value document at Rs.1,200/-per sq. ft. was also registered in document no.3456 of 2006 on 010. 2006 and therefore, the value fixed by the petitioner for his document is very low and it is against the guidelines.

5. Heard Mr.K.Moorthy, learned counsel for the petitioner and Mr.Hasan Fizal, learned Government Advocate for the respondents.

6. The learned counsel for the petitioner assailed the order of the third respondent on the ground that if the property is purchased in Court auction sale, the value fixed by the Court has to be taken into account and there cannot be any differing value prevailing in the surrounding areas to be taken into note. Learned counsel for the petitioner relied on an unreported decision of this Court in W.P.No.24520 of 2004 dated 28.09.2004 and the relevant paragraph reads as follows:

"Only after accepting the highest offer, this Court has issued directions to the Official Liquidator to execute the sale deed. Accordingly, a sale deed was executed by the Official Liquidator in respect of the land and building, in consideration of Rs.3.00 crores on 07.04.2004. Under such circumstances, there cannot be insistence by the department stating that the stamp duty has got to be paid either for the guideline value or for the higher value, since the machinery forms part of the building. A reading of the sale deed in question would clearly indicate that the assets namely land and building were sold by the Official Liquidator under the sale deed only in consideration of Rs.3.00 crores and he