ORDER

% 06.02.2024

1. The Petitioner has approached this Court challenging the Order dated 07.11.2022 passed by the Respondent/Collector of Stamps assessing the value of the property bearing No.66-A, Friends Colony, New Delhi-110065 (admeasuring 1100 sq. yds.) (hereinafter referred to as “property in question”) only on the basis of circle rate and without taking into account any other factors.

2. The facts, in brief, are that the property in question was purchased by the Petitioner for a sum of Rs.36,00,00,000/- by way of a Sale Deed. The Sale Deed was registered on 12.09.2016 and a stamp duty for a sum of Rs.2,16,00,000/- was paid by the Petitioner. The registering authority The Order is downloaded from the DHC Server on 02/03/2024 at 23:39:43 objected that there was under valuation in the transaction as the prevailing circle rate is higher. The registering authority, thereafter, referred the matter to the Collector for fixing the market value of the property in question under Section 47A of the Indian Stamp Act, 1899. The Collector vide Order dated 22.07.2017 passed an Order on the basis of the circle rate. The Collector in that round did not compare the Sale Deeds of surrounding properties for the reason that it was not supplied by the Petitioner. The Petitioner, thereafter, preferred an appeal before the Additional District Judge which was dismissed vide Order dated 16.03.2018. Being aggrieved by the Order dated 22.07.2017 passed by the Collector and the Order dated 16.03.2018 passed by the Additional District Judge, the Petitioner preferred a writ petition being W.P.(C) 3587/2018 before this Court. A Co-ordinate Bench of this Court allowed the said writ petition vide Judgment dated 14.03.2019. The learned Single Judge held that the circle rate alone cannot be the only measure to calculate the value of the property for fixing the stamp duty to be paid. The leaned Single Judge held that the circle rate can only be one of the factors to calculate the stamp duty. The learned Single Judge, after analysing the law, observed as under:

“41. This Court is of the view that the aforesaid approach is erroneous. There may be cases where the parties may not wish to contest the levy of stamp duty on the basis of values of circle rates. It may not be worthwhile for a party to contest the same if the difference of the value is not significant. However, that does not mean that the transaction value is less than the market value of the property. The five sale deeds produced by the petitioner and three of the five sale deeds relied upon by the Collector clearly indicate that the transaction values of the properties were less than the circle rates. Clearly, the said material could not be The Order is downloaded from the DHC Server on 02/03/2024 at 23:39:43 brushed aside only for the reason that the concerned parties had not contested the levy of stamp duty in excess of that which was payable on the consideration as set forth in the documents.

the impugned order cannot be sustained. The impugned order as well as the order dated 22.07.2017 passed by the Collector are set aside and the matter is remanded to the Collector to consider afresh in accordance with law. The Collector shall issue a fresh notice to the petitioner in accordance with Rule 7(1) of the Rules and decide afresh after affording the petitioner an opportunity to be heard.”

3. The aforesaid Judgment was challenged by the Respondent by filing an appeal being LPA No.278/2019. The Division Bench of this Court vide Judgment dated 15.11.2019 upheld the Order passed by the learned Single Judge and held that the circle rate alone cannot be the only measure to calculate the stamp duty and that the valuation of the property depends upon the several factors like area of the plot in question, use of the property in question, nature of property in question whether it is a new property or old property, the width of the road upon which the property is situated, the nature of t