IMPORTANT POINT
The three-year limitation for initiating inquiries under Section 33-A of the Indian Stamp Act is mandatory, and any actions taken beyond this period are without jurisdiction.

JUDGMENT :

THE HON'BLE MR.SANJAY V.GANGAPURWALA, CHIEF JUSTICE

Prayer: Appeal filed under Clause 15 of the Letters Patent against the order dated 02.12.2021 made in W.P.No.17493 of 2012.

We have heard Mr.Haja Nazeerudeen, learned Additional Advocate General, assisted by Mr.P.Haribabu, learned Government Advocate for the appellants and Mr.Srinath Sridevan, learned Senior Counsel for Mr.M.S.Murali, learned counsel for the respondent.

2. These appeals are filed by the State against the order of the learned Single Judge thereby allowing the writ petitions filed by the respondent and setting aside the show cause notices issued, thereby reopening the issue of stamp duty paid by the respondent pursuant to the registered instrument.

3. Learned Additional Advocate General submits that the time period of three years provided under Section 33A of the Indian Stamp Act is directory in nature. The same cannot be held to be mandatory. Reliance is placed on the judgment of the Apex Court in the case of Inspector General of Registration, Tamil Nadu v. K.Baskaran [(2020) 14 SCC 345].

4. According to learned Additional Advocate General, the Apex Court interpreting Rule 7 of the Tamil Nadu Stamp (Prevention of Undervaluation of Instruments) Rules, 1968 and Section 47-A of the Indian Stamp Act, 1899 set aside the judgment of this Court holding that the said provision is mandatory.

5. Per contra, learned Senior Counsel for the respondent submits that the time limit of three years prescribed under Section 33-A of the Indian Stamp Act is mandatory.

6. Relying upon the same judgment of the Apex Court in the case of Inspector General of Registration, Tamil Nadu, supra, learned Senior Counsel submits that the Apex Court held that there are some limitations on the exercise of powers since no proceedings can be initiated against an order passed under Sub-sections (2) and (3) of Section 47-A of the Indian Stamp Act, if the time for preferring the appeal against that order has not expired or if more than five years have expired after passing of the order. It is further held that if the period of five years has expired, no suo motu powers can be exercised.

7. Upon hearing the respective counsel, the substratum of the matter is “whether the period of three years as provided under the second proviso to Section 33-A(1) of the Indian Stamp Act for initiation of an enquiry is mandatory or directory?”

8. For ready reference, we reproduce the dates of the execution/registration of the documents and issuance of show cause notices: