The authorities have the power to initiate proceedings for deficient stamp duty within 3 years of registration of the document, and compliance with principles of natural justice is required in the proceedings.

Hemant Gupta, J. - The challenge in the present petition is to the order passed by the Commissioner, Gurgaon, dated 7.12.2006, whereby an appeal filed by the petitioner against the order of the Collector dated 9.1.2006 calling upon the petitioner to make up the deficiency in stamp duty amounting to Rs. 14,24,375/-, was dismissed.

2. The petitioner has got executed a sale deed of the land measuring 128 Kanals 9 Marlas on 23.12.2002 in village Bilaspur, for total sale consideration of Rs. 14,50,000/-. A show cause notice was issued to the petitioner in terms of Section 47-A of the Indian Stamp Act, 1899, as amended in the State of Haryana (hereinafter referred to as the Act), pointing out that the value of the land comes out to Rs. 1,28,45,000/- on which stamp duty payable is Rs. 16,05,625/-, but stamp duty of only Rs. 1,81,250/- has been paid, Therefore, there is deficiency of Rs. 14,24,375/- in paying the stamp duty.

3. The reasoning given by the petitioner to value the land at the price mentioned in the sale deed was that various civil suits are pending against the petitioner and even the petitioner is not in possession of the land.

4. The Commissioner has found that the sale deed itself contains a recital that the said land is free from all encumbrances and buyer would become absolute owner of the subject matter of the land. It has been further found that the purchased land is situated on Delhi-Jaipur Highway and the land situated in village Bilaspur is adjoining the road and can be used for commercial purposes. Thus, there is deficiency in the stamp duty.

5. Learned counsel for the petitioner has vehemently argued that the land was disputed and, therefore, the valuation mentioned in the sale deed was just valuation and the Collector rate cannot be taken into consideration. He has relied upon a judgment of this Court reported as Abhinav Kumar v. State of Haryana and others, (2001-1)127 PLR 598 to contend that reference has been made after registration of the sale deed and, therefore, such reference is not maintainable. Reliance is also placed on a Division Bench judgment of this Court reported as Lalita Devi and another v. The Commissioner, Gurgaon Division, Gurgaon and another,(2001-2)128 PLR 23, to contend that the petitioner was not granted any reasonable opportunity of hearing as contemplated under Section 47-A of the Act.

6. I do not find any merit in the arguments raised by learned counsel for the petitioner. Section 47-A of the Act empowers the Sub Registrar to initiate process if the document is found to be insufficiently stamped. Such process can be initiated after registration of the document and within 3 years of registration of the document. Section 47A of the Act reads as under :

"47-A. Instruments under valued, how to be dealt with - (1) If the Registering Officer appointed under the Registration Act, 1908, while registering any instrument transferring any property, has reason to believe that the value of the property or the consideration, as the case may be, 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 value or consideration, as the case may be, and the proper duty payable thereon.

(2) On receipt of 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 value or consideration and the duty as aforesaid and the deficient amount of duty, if any, shall be payable by the person liable to pay the duty.

(3) The Collector may suo motu, or on receipt of reference from the Inspector General of Registration or the Registrar of a district, in whose jurisdiction the property or any portion thereof which is the subject matter of the instrument is situate, appointed under the Registration Act, 1908, shall within three years from the date of regis