Court emphasized that suspicion of under-valuation without evidence cannot invoke S.47A of the Indian Stamp Act.

1. Leave granted.

2. Challenge in this appeal is to the order passed by a Division Bench of the Madras High Court in appeal filed under S.47A of the Indian Stamp Act, 1899 (in short the 'Act'). The appeal was filed against the order passed by Chief Revenue Control Officer cum Inspector General of Registration, Chennai in proceedings Pa.Mu.No.22947/NI/2005 dated 8.2.2006 confirming the order of the District Revenue Officer (Stamps), Office of the District Collector, Chennai in proceedings Na. K.C. Pa.244/2004/A4 dated 11.4.2005.

3. The controversy lies within a very narrow compass. According to the appellant, an extent of 60.86 acres of land comprised in S. Nos. 330, 338, 473, 552 etc. situate at Ambattur Taluk, Tiruvallur District, which was previously owned by Dunlop India Limited, a Public Limited Company. The said Company became a sick industry and was declared so under the Provisions of Sick Industrial Companies (Special Provisions) Act, 1985 (in short '1985 Act') Consequent to such declaration, for the purpose of rehabilitation, surplus properties and assets belonging to the said company were sought to be disposed of by the statutory authorities under the said Act such as Board For Industrial and Financial Reconstruction (BIFR) and Appellate Authority for industrial and Financial Reconstruction (AIFR) by forming an Asset Sales Committee (ASC) consisting of members such as representatives of IDBI, Debenture Holders, Government of West Bengal and Special Director of BIFR.

4. In compliance with the guidelines issued by the statutory authorities (BIFR & AIFR), the ASC made publications in Newspapers about its proposal to sell the above mentioned 60.86 acres of lands and invited tenders in sealed covers from interested persons. The appellant submitted his tender along with others and his offer of Rs. 24,34,40,000/-, at the rate of Rs. 40 lakh per acre, was the highest. Accordingly, his tender was accepted by the ASC as well as by the statutory authorities. The company was granted permission to execute the sale deed in favour of the appellant.

5. It is the further case of the appellant that on receipt of the entire sale consideration of Rs. 24,34,40,000/- from him, the said company executed a sale deed dated 17.06.2004, registered as Document. No. 6939/2004 on the file of the Sub Registrar, Ambattur. The sale is not in between two private individuals, on the other hand, it is a sale in consonance with the conditions laid down under the 1985 Act. In such circumstances, one could visualize that there could be no question of any possibility of under valuation of the property warranting the proceedings under S.47A of the Act. Further, the sale was found to be valid in WP No. 25962 of 2004 filed by the Dunlop Factory Employee's Union.

6. A reference was made by the Sub Registrar, Ambattur, to the second respondent District Revenue Officer (DRO) in respect of the sale transaction, based on which, the second respondent initiated proceedings under S.47A of the Act resulting in issuance of notice dated 18.08.2004 in Form No. 1 of R.4 of the Tamil Nadu Stamp (Prevention of Undervaluation of Instruments) Rules, 1968 (in short 'Rules'), calling upon the appellant to state his objections with regard to fixation of the market value of the property at Rs. 154,69,88,168/- as against the sum of Rs. 24,34,40 000/- for which sum, the property was purchased; and to show cause as to why he should not be called upon to pay the balance stamp duty of a sum of Rs. 10,42,83,856/-.

7. Apart from explaining and setting out the circumstances under which he purchased the property, the appellant also questioned the jurisdiction of the authorities to invoke S.47A of the Act. It