Quasi-judicial authorities must adhere to fair procedure, including holding enquiries, giving opportunities of hearing, and recording reasons for their decisions.

In this petition, the petitioners have prayed for quashing notice dated 7.2.2001 (Annexure P-1) issued by District Revenue Officer-cum-Collector, Yamuna Nagar (respondent No. 2) under Rule 5(1) of the Haryana Stamp (Prevention of Undervaluation of Instruments) Rules, 1978 (for short, the Rules) and orders dated 4.9.2002 (Annexure P-3) and 25.2.2003 (Annexure P-5) passed by respondent No. 2 and Commissioner, Ambala Division, Ambala (hereinafter described as the Commissioner), respectively under Section 47-A of the Indian Stamp Act, 1899 (for short, the Act).

2. The petitioners purchased five acres of agricultural land situated within the revenue estate of village Radaur, Sub-tehsil Raduar, District Yamuna Nagar vide sale deed No. 57 dated 9.4.1999 for a consideration of Rs. 4,00,000/- (Rs. 80,000/- per acre). They presented the sale deed for registration before Sub Registrar, Yamuna Nagar and paid stamp duty of Rs. 50,000/-. The officer concerned registered the document on that very day without raising any objection, but after a gap of about two years, respondent No. 2 issued notice Annexure P-1 to the petitioners and asked them to produce evidence in regard to value of the property. They filed reply to contest the notice by asserting that respondent No. 2 did not have the jurisdiction to re-assess the value of the property and that the price specified in the sale deed was based on the actual market value. Thereafter, respondent No. 2 passed order Annexure P-3 vide which he determined the value of the property at the rate of Rs. 2,50,000/- per acre and directed the petitioners to deposit additional stamp duty of Rs. 1,06,250/-. The appeal filed by the petitioners under Section 47- A(4) of the Act was dismissed by the Commissioner vide order Annexure P-5.

3. The petitioners have challenged the impugned notice and the orders mainly on the ground of violation of the provisions contained in Section 47-A(2) of the Act and Rule 4 of the Rules. They have averred that no evidence was produced before respondent No. 2 on the issue of market value of the land and he arbitrarily determined the same to be Rs. 2,50,000/- per acre as against Rs. 80,000/- per acre specified in the sale deed. They have further averred that order Annexure P-5 passed by the Commissioner is vitiated due to violation of one of the facets of the rules of natural justice which enjoins every quasi judicial authority to pass a speaking order.

4. In the written statement filed on behalf of respondent Nos. 1 and 2, it has been averred that the determination of the value made by respondent No. 2 is correct and the petitioners do not have the right to challenge the rate fixed by him for the purpose of levy of stamp duty.

5. We have heard learned counsel for the parties. For the purpose of determining the legality of the impugned orders, it will be useful to refer to Section 47-A(1) to (4) of the Act and Rule 4 of the Rules. The same read as under :-

"Section 47-A(1) to (4) of the Act

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 Registra