The 15-day time limit for referring documents under the Indian Stamp Act is mandatory, and failure to comply requires the return of the document to the petitioner.

ORDER :

The petitioner seeks issuance of a Writ of Mandamus to direct the second respondent to return the document registered in Document No.6601/2024 dated 13.06.2024 and for consequential orders.

2. The petitioner purchased a property situated at S.F.No.2269/5 to an extent of 586 sq.ft (Plot No.A), 841 sq.ft (Plot No.B) and 948 sq.ft (Plot No.C) located in Andankovil East, Rasi Nagar, Manmangalam Taluk, Karur District. The alienation was made on 13.06.2024 for sale consideration of Rs. 36,25,000/-. When the sale deed was presented for registration, the document was originally assigned a Pending Document No.56/2024 and thereafter, registered as Document No.6601/2024.

3. The petitioner received an intimation from the first respondent that the second respondent had asked him to fix the value of the land and he had fixed it at Rs.4000/- per square feet. Objecting to the said valuation, the petitioner sent his reply on 30.09.2024. Despite the fact that a reply has been given, the document had not been returned by the second respondent. Hence, the Writ Petition.

4. I heard Mr.N.Shanmuga Selvam for the petitioner and Mr.R.Suresh Kumar, learned Additional Government Pleader, who took notice for the respondents.

5. Mr.N.Shanmuga Selvam relies upon G.O.Ms.No.174, Commercial Taxes and Registration (J1) Department, dated 28.11.2017 and urges that as the Government had fixed a time limit of 15 days from the date of registration for reference to the Collector under Section 47-A (1) of the Indian Stamp Act of 1899, the petitioner is entitled to have the document returned to him.

6. Mr.R.Suresh Kumar argues that in terms of Rule 27 of the Registration Rules, the respondents are entitled to impound the documents and take action in terms of the Indian Stamp Act. He states that the second respondent has recommended the document for initiation of action under Section 47-A of the Indian Stamp Act on 27.02.2025. He adds the period of 15 days fixed under the Government Order is only directory and not mandatory. Hence, he urges that the second respondent is entitled to retain the documents.

7. I have carefully considered the submissions of both sides.

8. There can be no dispute that under Rule 27 of the Registration Rules, the Registering Officer can point out to the party that the document is deficiently stamped and can give him two options,

(i) either to make good the deficiency or,

(ii) impound the document in terms of the Stamp Act and refer the same for necessary action.

9. The issue as to whether a time limit can be fixed by the Court for return of the documents was a subject matter of discussion before the Division Bench of this Court in The Special Deputy Collector (Stamps), Palayamkottai, Tirunelveli District and another Vs. M.Alfred and others in W.A.(MD).Nos. 1176 to 1179 of 2017, etc., batch, dated 09.10.2017. While disposing of the appeals, the Division Bench passed the following order:

“(i) The Secretary, Government of Tamil Nadu, Commercial Taxes and Registration Department, Fort St. George, Chennai, is directed to consider appropriate amendment fixing a time limit for the registering authority to refer the instrument under Section 47-A of the Indian Stamp Act, 1899 .

(ii) The Secretary, Government of Tamil Nadu, Commercial Taxes and Registration Department, Fort St. George, Chennai, or the Inspector General of Registration and Controlling Revenue Authority shall issue appropriate circulars or directions to the Collector, to comply with rule 7(1) of Tamil Nadu State (Prevention of Undervaluation of Instruments) Rules, 1968.”

10. In pursuance to the directions given by the Division Bench, the Government of Tamil Nadu fixed a time limit of 15 days, after registration of an instrument by the Registering Officer, for referring to the Collector under Section 47-A(1) of the Indian Stamp Act. It further fixed a time limit of 15 days from the date receipt of the proposal from the Registering Officers for the Collectors to issue notices under Form-I. In ac