FAIZAL BABU Vs. STATE OF KERALA

JUDGEMENT

(1.) The petitioner entered into a sale agreement with the owner of a land. The sale agreement was not fructified. The petitioner approached the civil court. The civil court granted a decree of specific performance. Consequent to the passing of the decree, the document was executed through the court. There is difference between the consideration and the fair value of the land. Stamp duty paid was based on the consideration as shown in the sale agreement. The registering authority registered the document and proceeded against the petitioner under Sec. 45A of the Kerala Stamp Act, 1959 (hereinafter referred to as the "Act"). Noting that the petitioner had not paid stamp duty in accordance with the fair value, the petitioner was directed to pay deficit stamp duty by Exhibit P2 order. The petitioner appealed against that order before the District Collector. The District Collector affirmed that order. It is challenging that order, the petitioner approached this court. The short issue falls under a narrow compass with respect to the fair value fixed. The petitioner objects the fair value fixed in the appeal filed before the District Collector in terms of Sections 45A(4) and 45A(5) of the Act.

(2.) There are two modes of challenge in fixation of the fair value of the land; one is in terms of Sec. 28A of the Act, which has to be done in a time bound manner and; the other is an inbuilt mechanism as referred under Sec. 45A of the Act. It is to be noted that there may be a situation where at the time of notification under Sec. 28A, the person like the petitioner may not have the interest to object the fixation of the fair value of the land. The interest of such persons is protected in terms of Sec. 45A. This is so clear from Sec. 45A(5). It is referred that the Collector shall hear and dispose of the appeal in such a manner as prescribed under the Act and the Rules framed thereunder. It is to be noted that under Sec. 45A, in fact, particularly refers to the deficiency of stamp duty in comparison with the fair value of the land. Sec. 45A, therefore, deals with instruments not bearing stamp based on the fair value of the land. It is quite different from Sec. 45B. Sec. 45B refers to the instrument undervalued by not showing the actual consideration.

(3.) Rule 7 of the Kerala Stamp (Fixation of Fair Value of Land) Rules, 1995 prescribes the procedures to file an appeal under Sec. 45A of Kerala Stamp Act. Rule 8 of the above Rule concerns the manner in which the appeal has to be considered by the Collector. Rule 8 spells that the Collector has every power to vary the fair value fixed. The cause of action to file an appeal under Sec. 45A(4) would arise only at the time of registration of an instrument. However, the cause of action to challenge the fair value under Sec. 28A would arise based on the publication of the fair value by the Revenue Divisional Officer.