PALS INDUSTRIES LIMITED BANGALORE Vs. DISTRICT REGISTRAR DETECTION OF UNDERVALUATION OF STAMPS BANGALORE

JUDGEMENT

(1.) SRI N. K. Ramesh, learned Additional Government Advocate is directed to take notice for respondent.

(2.) THE Karnataka Industrial Areas Development Board ('kiadb' for short) a statutory Body executed a deed of sale dated 29-8-1996 (Annexure-B) in favour of the petitioner in regard to a plot of land allotted to the petitioner as per terms and conditions contained in the lease-cumsale agreement dated 4-6-1985 (Annexure-A ). The petitioner presented the said deed for registration before the Jurisdictional Sub-Registrar. The Sub- Registrar having registered the document, being of the opinion that the property was undervalued, made a reference to the respondent under Section 45-A of the Karnataka Stamp Act, 1957 ('act' for short ). In pursuance of it, the respondent (District Registrar) has initiated proceedings under Section 45-A for determination of market value and has passed a provisional order dated 29-4-1997 (Annexure-D) proposing to determine the market value as Rs. 61,53,671/-, as against the sale price of Rs. 4,07,018/ -.

(3.) THE petitioner contends that as the sale deed is executed by a statutory authority, the question of suppression of true price or undervaluation, does not arise and therefore, initiation of undervaluation proceedings in regard to such a sale is without jurisdiction. The second contention is based on Section 43 of the Karnataka Industrial Areas development Act, 1966 ('kiad Act' for short), which reads as follows: