Reasonable time not to be viewed as one that has deprived rights of parties.

S. Palanivelu, J.

1. The question posed before this Full Bench for determination is, as under:

Whether the reference of a document to the Special Deputy Collector (Stamps) under Section 47-A

(1) of the Indian Stamp Act is valid, if made after 21 days of registration of the document ?

2. A learned Single Judge of this Court in W.P. (MD) No.2731 of 2004, after going through the decisions of this Court on the subject, has raised the following questions:

(i) Whether the Court, in exercising the power of judicial review, can fix a limitation for the exercise of a statutory duty under Section 47-A(1) of the Act ?

(ii) Even if any guideline is introduced by a judgment, whether that can operate as a valid rule so as to nullify any order made within a reasonable period by the authorities, on allegations of undervaluation ?

3. The learned Single Judge, while opining, that in such matters, when a reference was pending for proper valuation by the Special Deputy Collector, the Court could only direct return of the registered document with proper endorsement, leaving the matter of undervaluation by proper adjudication by the Collector (stamps), referred the matter to a Division Bench.

4. Accordingly, when the matter was taken up by the Division Bench, it referred the matter to a Lager Bench. Hence, the matter is before this Full Bench.

5. In order to have a meticulous analysis of the matter, extraction of Section 47-A of the Act is indispensable, which reads as follows:

“ 47-A Instruments of conveyance, etc., under-valued how to be dealt with. — (1) If the Registering Officer appointed under the India Registration Act, 1908 (Central Act XVI of 1908) while registering any instrument of conveyance, exchange, gift, release of benami right or settlement, has reason to believe that the market value of the property which is the subject matter of conveyance, exchange, gift, release of benami right or settlement, has not been truly set forth in the instrument, he may, after registering such instrument, refer the same to the Collector for determination of the market value of such property and the proper duty payable thereon.

(2) On receipt of a reference under sub-section (1), the Collector shall, after giving the parties a reasonable opportunity of being heard and after holding an enquiry in such manner as may be prescribed by rules made under this Act, determine the market value of the property which is the subject matter of conveyance, exchange, gift, release of benami right or settlement and the duty as aforesaid. The difference if any, in the amount of duty, shall be payable by the person liable to pay the duty.

(3) The Collector may, suo motu or otherwise, within five years from the date of registration of any instrument of conveyance, exchange, gift, release of benami right or settlement not already referred to him under sub-section (1), call for and examine the instrument for the purpose of satisfying himself as to the correctness of the market value of the property which is the subject matter of conveyance, exchange, gift, release of benami right or settlement and the duty payable thereon and if after such examination, he has reason to b elieve that the market value of the property has not been truly set forth in the instrument, he may determine the market value of such property and the duty as aforesaid in accordance with the procedure provided for in sub-section (2). The difference, if any in the amount of duty, shall be payable by the person liable to pay the duty.”

6. A careful reading of the above provision would show that if the Registering Officer has reason to believe that the market value of the property, which is the subject of conveyance, has not been truly set forth, he may, after registering such instrument, refer the same to the Collector for determination of proper market value of the property. The rationale behind the said Section is to neutralise the effect of undervaluation of the property, with a view to avoid evading