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1989 DIGILAW 61 (KAR)

SANJAY KUMAR v. SUB REGISTRAR

1989-02-17

M.RAMA JOIS

body1989
RAMA JOIS, J. ( 1 ) THE petitioner has presented this petition questioning the legality of the reference made under Section 45. A of the karnataka Stamp Act. ( 2 ) THE facts of the case, in brief, are as follow: The Karnataka. . State Road transport Corporation Employees' House building Co-operative Society has formed a layout at Nainappasetty Palya in Bangalore south Taluk. The society allotted a site in favour of one. Narasamma for a sum of Rs. 14. 240-00 in the year 1980. Narasamma sold the site to one Govindaraju for a sum of rs. 41,000-00. Govindaraju in turn sold the site to one Ashwathanarayana for a sum of rs. 49,000-00 and the petitioner purchased the said site from Ashwathanarayana for a sum of Rs. 1,75,000-00. The site measures 60'x65. The document was presented for registration before ' the Sub-Registrar, jayanagar. According, to the petitioner, instead of returning the document after registration, to. the petitioner, the sub-Registrar has made a reference to the deputy Commissioner on the ground that the real market value of the site has not been reflected in the sale deed. Questioning the legality of the said reference, the petitioner has presented this writ petition. ( 3 ) THE learned counsel for the petitioner contended that there was no valid reference at all to the Deputy Commissioner. In support of his contention, he relied on section 45a ( 1) of the Karnataka Stamp Act 1957. It reads:"45 A INSTRUMENT OF conveyance, ETC. , UNDER value HOW TO BE DEALT WITH: (1) the registering officer appointed under the Registration Act 1908 (Central Act XVI of 1908) while registering any instrument of conveyance, exchange or gift has reason to believe that the market value of the property which is the subject matter of conveyance, exchange or gift has not been truly set forth in the instrument, he may; after registering such instrument, refer the same to the Deputy commissioner lor determination ot the market value of such property and the proper duty payable thereon. "the learned counsel pointed out that the condition precedent for making a reference to the Deputy Commissioner was that the sub-Registrar must have reasons to believe that the market value of the property, which is the subject matter of conveyance, exchange or gift does not show the real market value of the property. "the learned counsel pointed out that the condition precedent for making a reference to the Deputy Commissioner was that the sub-Registrar must have reasons to believe that the market value of the property, which is the subject matter of conveyance, exchange or gift does not show the real market value of the property. ( 4 ) THE learned counsel for the respondents submitted that the reference was made only after noticing the valuation of the other sites in the locality and registered in the same Sub-Registrar's qffice. He also produced the records. In the records there is a sheet for ascertaining the market value with various columns. In the said Form, the Sub-Registrar has calculated the market value of the site in question at Rs. 2,16,500-00. There is no order of reference made by the Sub-Registrar. ( 5 ) THE language of Section 45. A is very clear. The condition precedent for making a reference is, there must be reasons for the sub-Registrar to believe that the market value of the property has not been truly set out in. the document presented for registration. From this it follows that the reasons must be recorded. However brief it may be, it is the duty of the Sub-Registrar to record reasons for his belief that the true market value has not been set out in the document and thereafter refer the matter to the Deputy Commissioner for adjudicating the real market value of the property, under sub-section (2) of Section 45a of the Act. The Sub-Registrar cannot simply record the market value of the property according to him in a sheet and send the documents to the deputy Commissioner. The documents, must be sent as enclosure to the order of reference. It is also open to the sub-Registrar to make an inquiry as contemplated in Rule 3 of the Karnataka stamp (Prevention of Under Valuation of instruments) Rules 1977. This Rule also supports the view that an order of reference must contain reasons and the documents should be sent along with the reasons recorded by the Sub Registrar. As this procedure has not been followed, it should be held that there is no valid reference at all. ( 6 ) THE learned counsel next contended that whatever may be the power of the sub-Registrar to make a reference under section 45 A of the Act. As this procedure has not been followed, it should be held that there is no valid reference at all. ( 6 ) THE learned counsel next contended that whatever may be the power of the sub-Registrar to make a reference under section 45 A of the Act. he had no power to withhold the documents and he is bound to return the same to the person who had presented it for registration. I am unable to accept this contention. Section 45a of the act uses the words "refer the same to the deputy Commissioner''. This clearly means that the Sub Registrar has the power to send the document registered by him to the deputy Commissioner along with his reasons for making a reference. Sub-section (2) of Section 45a of the Act prescribes the procedure to be followed by the Deputy commissioner on such reference. He is required to give a reasonable opportunity of hearing to the person concerned and has to pass orders regarding the market value of the property. If the Deputy Commissioner finds that the valuation furnished in the documents is correct, he is bound to return the document to the party along with his order. If he finds that the stamp paid is insufficient, he has the power to direct the party concerned to pay the difference and direct that the document be returned to the party after the deficiency is made up. Sub-section (5) of Section 45a also provides for right of appeal to the District judge. ( 7 ) FOR the a fore said reasons, 1 make the following order: (1) The writ petition is allowed; ii) The respondents are directed to return the documents to the petitioner within a period of two months, unless a reference in terms of sub-section (1) of Section 45a of the Act is made by the Sub-Registrar to the Deputy Commissioner; iii) If a reference in terms of Section 45a (1) of the Act is made by the sub-Registrar to the Deputy commissioner, further action shall be taken in accordance with sub-sec. (2) of Section 45. A of the Act and the return of the documents to the petitioner shall be in terms of the order of the Deputy Commissioner. (2) of Section 45. A of the Act and the return of the documents to the petitioner shall be in terms of the order of the Deputy Commissioner. iv) If a reference is made by the sub-Registrar to the Deputy commissioner, which he is at liberty to make only within a period of two months from today, the deputy Commissioner is directed to dispose of the matter within three months thereafter. Writ petition is allowed --- *** --- .