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IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.S. Sundar, P. Dhanabal, JJ
State of Tamil Nadu rep.by its Secretary Commercial Taxes & Registration Department – Appellant
Versus
R.K.Jalan – Respondent
JUDGMENT
S.S. SUNDAR, J.
(1) This appeal is directed against the order of the learned Single Judge dated 15.04.2024 in WP.No.9123/2024 allowing the writ petition filed by the respondents to quash the proceedings of the 3rd appellant, who had refused to register the Sale Deed dated 09.11.2023 and to direct the 3rd appellant to register the Deed of Conveyance pursuant to the decree obtained for specific performance by the Civil Courts.
(2) Brief facts that are necessary for the disposal of this appeal are as follows:-
(3) Pursuant to a decree in the suit in OS.No.6686/1996 for specific performance and the Sale Deed executed by the Court in execution of decree, the writ petitioners presented the document for registration. However, the same was refused on the ground that the stamp duty has not been paid on the basis of market value for the property as on the date when the document was presented for registration. However, the learned Judge allowed the writ petition after referring the judgment of this Court made in CMA.Nos.168 and 169 of 2016 dated 22.08.2017 in G.Mary Chellathal and Another Vs. Tamil Nadu Inspector General of Registration & Principal Revenue Authority and others. As agains
Stamp duty on a Sale Deed must be based on the market value at the time of registration, not the consideration mentioned in the document.
Stamp duty on sale deeds executed under court decrees for specific performance must reflect the original sale agreement value, not the current market value at registration.
Stamp duty is assessed based on the market rate prevailing at the time of execution of the sale deed, not at the time of agreement to sell.
The Registering Authority must refer matters for market value determination before registration; post-registration references are invalid under Section 47-A(1) of the Indian Stamp Act, 1899.
The court ruled that a registration officer cannot refer a property valuation issue after the registration of a deed, as per Section 47(A)(1) of the Indian Stamp Act.
Point of law: Once certificate under section 31 was issued by the respondents, they should not be allowed to reopen their own valuation after four years to say that valuation of the property is highe....
Post-registration assessment of deficit stamp duty is invalid if conducted beyond statutory time limits, confirming jurisdictional authority restrictions under the Indian Stamp Act.
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