Stamp duty for property allotment by a government authority should be based on the sale consideration stipulated in the deed, not the guideline value.

1. The petitioner had approached this Court by filing the present writ petition for a Mandamus directing the second respondent to receive and register the sale deed executed by the first respondent in her favour without insisting on stamp duty on the guideline value and accept the stamp duty paid on the actual sale consideration stipulated in the sale deed relating to the property at Plot No.11 in LIG Block No.10, Gudalur, Maramalai Nagar – 603 209.

2. The case of the petitioner is that the property in question was allotted to her under Low Income Group, on hire purchase scheme for a sum of Rs.1,17,110/- and she had to pay the same in monthly installments. After paying the entire sale consideration, the petitioner requested the first respondent to hand over the said plot and execute the sale deed. The first respondent had also executed a draft sale in her favour. But, the second respondent insisted upon payment of the stamp duty as per the guideline value for registering the same. Hence, the petitioner had approached this Court for the relief set out earlier.

3. Learned counsel appearing for the petitioner submitted that when the first respondent, the Government body allotted the property in question to the petitioner by receiving the total sale consideration of Rs.1,17,110/- and executed a draft sale deed in her favour, the second respondent cannot insist the petitioner to pay the stamp duty as per the guideline value for registering the same.

4. Mr.D.Veerasekaran, learned counsel appearing for the first respondent submitted that since the first respondent has allotted the plot in question to the petitioner after receiving the total sale consideration of Rs.1,17,110/-, the petitioner has to pay stamp duty only on the said amount and not as per the market value prevailing on the date of registration of the same.

5. Per contra, learned Additional Government Pleader appearing for the second respondent contended that the petitioner has to pay the stamp duty as per the guideline value as on the date of registration of the sale deed and he has also relied on the judgment of the Honble Apex Court reported in 2008 (1) CTC 60 – State of Rajasthan & others v. Khandaka Jain Jewellers, wherein the Honble Apex Court, according to the learned Additional Government Pleader, held that the stamp duty has to be payable as per the guideline value prevailing on the date of registration of the document.

6. I have considered the submissions made by the learned counsel appearing for the petitioner, learned counsel appearing for the first respondent and the learned Additional Government Pleader, appearing for the second respondent.

7. It is not in dispute that the property in question had been allotted to the petitioner by the first respondent vide his communication dated 28.09.1998 on hire purchase scheme for a sum of Rs.1,17,110/- which was payable in monthly instalments. It is also not in dispute that the petitioner has paid the entire sale consideration and the first respondent has executed a draft sale deed in her favour and the second respondent insisted upon the payment of the stamp duty as per the market value of the property. This question came in for consideration before this Court and the same is reported in 1997 (2) C.T.C. 617- S.P.Padmavathi v. State of Tamilnadu, wherein this Court has held that in case one of the parties being a Government authority, the presumption should be that there is no concealment of actual sale consideration and the stamp duty should be payable on the basis of the sale consideration stipulated in the deed and the Registration Authorities shall not insist on stamp duty on the guideline value at the time of registration. The said decision had been followed in another case reported in 2002 (2) C.T.C. 329 – Sugumaran v. State of Tamilnadu. In fact, this Court in W.P.No.33861 of 2007 by order dated 011. 2007 had upheld the contention now raised by the petitioner.

8. The Learned Additional Governmen