IMPORTANT POINT
The sale by tender does not constitute a public auction under Article 18 of the Indian Stamp Act, allowing the Collector to reassess market value and stamp duty under Section 47-A.

JUDGMENT :

Hon'ble Saral Srivastava, J.

1. Heard Sri Shashi Nandan, learned Senior Counsel assisted by Sri Sanjay Goswami and Sri Shreyas Srivastava, learned counsel for the petitioner and Sri M.C. Chaturvedi, learned Additional Advocate General assisted by Sri Chandan Kumar, learned counsel for the respondents.

2. The petitioner in the instant writ petition has assailed two orders dated 17.08.2022 and 02.08.2017 passed by the District Magistrate/Collector (Stamp), Agra (hereinafter referred to as ‘respondent no.2’) in Stamp Case No.94 of 2013-14. Respondent no.2 by order dated 02.08.2017 decided the issue no.1 formulated by the Chief Controlling Revenue Authority vide order dated 16.12.2011, and by order dated 17.08.2022, he determined the deficiency in stamp duty to the tune of Rs.1,45,35,270/-

3. The brief facts of the case are that the petitioner is a partnership firm having its registered office in Agra and is primarily dealing in the export of shoes.

4. As per the petition, one M/s. Wasan Shoes Limited was the owner of Khasra No.191 (old) having an area of 2 Bigha, 5 Biswa, and 16 Biswansi, and Khasra No.192 (old) having an area of 3 Bigha, 11 Biswa, and 8 Biswansi situated at Mauja Mangtai, Bodhla, Bichpuri Road, Tehsil and District Agra (hereinafter referred to as 'property').

5. The aforesaid properties are bounded on the North by Nala/Bichpuri Road, and on the South, East, and West by agricultural land. M/s Wasan Shoes Limited was running a factory over the aforesaid properties. It had taken financial assistance from the Canara Bank, Overseas Branch Sanjay Place, Agra to run the factory. The aforesaid property and one other property had been mortgaged by M/s. Wasan Shoes Limited with the Canara Bank as a security for the financial assistance. M/s. Wasan Shoes Limited defaulted in repayment of the loan amount of Rs.4,57,04,195.24/-. Consequently, a proceeding under Section 13 and Rules 8 and 9 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'SARFAESI Act, 2002') and the SARFAESI Security Interest (Enforcement) Rules, 2002 (hereinafter referred to as 'Rules, 2002') was drawn against M/s. Wasan Shoes Limited by the Canara Bank (hereinafter referred to as ‘Bank’) for the default in repayment of the loan amount. Accordingly, the Bank took possession of the aforesaid property. The Bank published a notice of possession in two daily newspapers namely, Dainik Jagran and I-Next on 21-12-2008.

6. Before proceeding with the auction of the property, the Bank had obtained a valuation report from a Government Approved Valuer as mandated under Rule 8(5) of the Rules, 2002. Further case of the petitioner is that as per the report of the valuer, the realisable value of the property was ascertained at Rs.1,95,00,000/-. Accordingly, the Bank kept the reserved price of the mortgaged property at Rs.2,00,00,000/-(Rupees Two Crores) in the auction notice.

7. The Bank, thereafter, invited tenders for the sale of the property by publishing notice in two newspapers notifying the date of the auction of the property. It transpires from the record that there was only a single bid by the petitioner. According to the petitioner, the petitioner offered a bid of Rs.2,02,00,000/- which was accepted by the Bank, and after depositing the aforesaid amount, the sale was confirmed in favour of the petitioner. Consequently, a sale certificate was issued to the petitioner by the Bank in the exercise of power under Rule 9 (6) of the Rules, 2002.

8. It appears that an inspection of the property was conducted by the Additional District Magistrate (Finance & Revenue), Agra on 04.08.2009. On inspection, it was found that a factory is being run over the property, and construction over 4000 square meters has been raised on the property. The report further stated that the aforesaid property has been sold out for Rs.2,02,00,000/-, and the stamp duty has been paid as per Article 18 of Sched