The main legal point established is the procedural requirement of timely reference to the Collector under Section 47-A of the Indian Stamp Act and the Collector's authority to initiate action within a specified timeframe.

JUDGMENT

Jaishree Thakur, J. (Oral) - The instant writ petition has been filed for issuance of a writ in the nature of certiorari for setting aside the order dated 21.02.2019 (Annexure P-4) passed by respondent No.2 and further for setting aside the order dated 28.07.2020 (Annexure P-6) passed by respondent No.1.

2. In brief, the facts are that the petitioner purchased the agricultural land for the sale consideration of Rs.17,55,000/- in the year 2007 and stamp duty of Rs.1,58,000/- was paid. After the execution of the sale deed in the year 2007, in the year 2014, respondent No.3 issued a letter to respondent No.2 saying that the sale deed has not sufficiently been stamped and proceedings under Section 47-A of the Indian Stamp Act may be initiated. Thereafter, respondent No.2 issued the notice to the petitioner, which was duly replied by the petitioner by inter alia stating that the proceedings initiated have become time barred under Section 47-A of the Act, however, respondent No.2 came to pass the order dated 21.02.2019, ignoring the plea raised by the petitioner in his reply. Thereafter, the appeal filed by the petitioner, challenging the order passed by respondent No.2, also came to be dismissed on 28.07.2020. Both the said orders passed by respondents No.2 and 3 respectively have been assailed in the instant writ petition.

3. Learned counsel appearing on behalf of the petitioner herein would contend that the impugned orders are unsustainable, as the SubRegistrar while registering the instrument did not impound the sale deed nor was any reference made to the Collector at his own instance. The sale deed was handed over to the petitioner after registration of the same. It is also argued that there are judgments to the effect that the reference can be made by the Sub-Registrar to the Collector immediately after registration of an instrument or in the course of registration. It is submitted that in the judgment rendered in Abhinav Kumar Vs. State of Haryana 2001 (1) RCR (Civil) 91, a reference had been made by the Sub Registrar to the Collector after a period of 8 days and it was held to be not in accordance with law. It is also argued that in the case of Iqbal Singh and others Vs. State of Haryana and others 2011 (3) RCR (Civil) 365, it has been held that an audit party is not authorized under any provisions of the Indian Stamp Act to assess and determine the nature of any document or the stamp duty payable thereon.

4. Per contra, learned counsel appearing on behalf of the respondent-State submitted that on the basis of audit report, it had been found that there was deficient stamp duty affixed on the sale deed that was executed on 03.04.2007 and pursuant to that, notice was issued to the petitioner herein to pay the additional amount of Rs.10,97,550/- towards deficient stamp duty and registration charges.

5. I have heard learned counsel for the parties and have perused the pleadings of the case as well as the case laws cited. The facts are not in dispute. The sale deed came to be registered on 03.04.2007 by the Sub Registrar but at that point of time, he did not impound the sale deed nor did he send a reference to the Collector as envisaged under Section 47-A (1) of the Indian Stamp Act, as applicable to the State of Punjab. Section 47-A of the Indian Stamp Act is reproduced 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. instrument transferring any property has reason to believe that the value of 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 Collector for determination of the value or consideration, as the case may be; 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 en