The main legal point established in the judgment is the determination of market valuation for stamp duty purposes at the time of execution and registration of the sale deed, as opposed to the time of property allotment.

K.Kannan, J.

1. I. Value on date of allotment or value on date of execution of registration-thats the question

The writ petition challenges the order determining the market valuation mentioned in a document which was a Transfer Deed of property allotted to the petitioner by the Punjab Urban Development Authority. It is not in doubt that the entire amount as determined for the property was as per the market valuation at the time when the property was allotted to the petitioner. The document was presented for registration on 11th September, 2008 when upon registration, the Registering Officer made a reference under Section 47-A for determination of valuation for the property on his reference that the property had been under valued and did not reflect the value of the property on the date when the document was presented for registration.

2. The Collector rejected the petitioners contention and the appeal confirmed the view of the Collector that the valuation for the property under the sale deed shall be the Collectors valuation on the date of execution and registration and not on the date when the property was offered to the petitioner through allotment.

II. Petitioners reliance on Rules-the basis shall be to take the price on allotment as "Collectors rate"

3. The contention in challenge of the orders passed by the Collector and the Appellate Authority is that the price charged for sale by a public authority namely the Development Authority ought to be taken as the market valuation and the counsel brings in support to his contention the explanation to Rule 3-A of the Punjab Stamp (Dealing of undervalued Instruments) Rules of 1983. The explanation reads as follows :-

Explanation: The consideration amount at the time of allotment of immovable property by any Government/Semi Government Organization shall be deemed to be Collectors rate and the stamp duty shall be charged for registration of document upon the consideration amount fixed by the Government/Semi Government Organization provided the document is got registered by the original allottee within three months from issue of this notification or within three months from payment of last regular installment as per schedule of payment of such allotment."

4. The time stipulated in the above explanation was a period of 3 months from the date of issue of notification or within 3 months from payment of last regular installment was paid. The notification was issued on 02.03.2009 and the document had been presented for registration even earlier before this explanation was brought into the Rules namely on 11th September, 2008. The contention on behalf of the petitioner is that the explanation is invariably in the nature of clarification of existing rule and it ought to be always therefore understood as retrospective.

III. In the context of agreement to sell and sale-Date of sale alone is relevant for purpose of valuation (a) Supreme Courts view

5. To the above contention of the petitioner, the response on behalf of the State would be that for the purpose of stamps to be used for a conveyance, the valuation as on the date of execution of the sale and registration alone shall be relevant the criterion. The value of the property as on the date of allotment, would not be material. This issue has come about slightly in a different situation before the Honble Supreme Court in State of Rajasthan v. Khandaka Jain Jewellers, 2008(1) RCR(Civil) 91 : 2007(6) R.A.J. 332 : 2007 (14) SCC 339, where the Honble Supreme Court was dealing with the valuation as mentioned in an agreement which was the subject of a suit for specific enforcement. By the time when the document was brought before a Registering Officer in execution of the decree, several years had passed and there the Honble Supreme Court held that the valuation must be only with reference to value at the time when the sale deed was executed and presented for registration. It reasoned that an agreement of sale and sale referred to two diff