The court affirmed that registration of a sale agreement can permit lower actual consideration than the fair value, conditioned on due payment of stamp duty based on fair value.

JUDGMENT

The petitioner, a private limited company, has approached this Court aggrieved by the non registration of Ext.P4 agreement for sale executed by it, in favour of one Mr. Aneesh for the sale of immovable property covered by Ext.P1 document.

2. The property covered by Ext.P1 belongs to the petitioner company. The petitioner company has decided to sell the said property. One Mr. Aneesh agreed to purchase the property for a total consideration of Rs.1,45,60,000/-. An agreement for sale has been executed between them which has been marked as Ext.P4. The consideration shown in the agreement for sale is less than the fair value. According to the petitioner, when it approached the 3^rd respondent to register the sale agreement, the 3^rd respondent insisted that the fair value of the property has to be shown as consideration in the sale agreement. It is in these circumstances, the petitioner has approached this Court.

3. I have heard Sri. Suvin R. Menon, the learned counsel for the petitioner and Smt. Deepa V., the learned Government Pleader.

4. The fair value fixed by the Government for the property covered by Ext.P1 would come to Rs.1,31,67,000/- (Rupees One crore thirty one lakh and sixty thousand only) per Are as evident from Ext.P5. The learned counsel for the petitioner submits that the actual consideration fixed between the parties is Rs.1,45,60,000/- for the entire extent of the property and the petitioner is prepared to pay the stamp duty and registration fee based on the fair value fixed in Ext.P5. The parties are free to fix the consideration less than the fair value. Section 45 A (3) of the Stamp Act permits the same. The learned Government Pleader on instructions submits that the 3^rd respondent is prepared to register Ext.P4 sale agreement as well as the sale deed provided the stamp duty and registration fee are paid based on the fair value at the rate of Rs.1,31,67,000/- per Are as shown in Ext.P5. Hence, this Writ Petition is disposed of directing the 3^rd respondent to register Ext.P4 sale agreement and also the sale deed pursuant to Ext.P4 thereafter on condition that the petitioner shall pay the stamp duty and the registration fee based on the fair value at the rate of Rs.1,31,67,000/- as shown in Ext.P5. It is submitted by the learned Government Pleader that in Ext.P4, a building has also been mentioned. Needless to say, the stamp duty shall be paid for the building as well in accordance with law.