HADIBANDHU SAHOO Vs. ADDL DISTRICT MAGISTRATE GANJAM

JUDGEMENT

(1.) The short question that arises for consideration in this writ application is whether the vendor in a sale deed is entitled to be noticed by the Collector when the said Collector receives a reference under sub-section (1) of Section 47-A of the Indian Stamp -Act (hereinafter referred to as the "Act") and proceeds with an enquiry to determine the value or consideration and the duty payable by the person liable to pay the duty.

(2.) The petitioners sold Ac. O. 024 decimals of land under a registered sale deed dated 16-5-1923 for a consideration of Rs. 3,000 / - to opposite party No. 3. The Sub-Registrar after registering the instrument and having reasons to believe that the value of the property has not been truly set forth in the instrument made a reference to the Collector for determination of the value and the proper duty payable thereon in exercise of his power under Section 47-A of the Act. On receipt of such reference, the Collector issued notice to the vendee to have an enquiry for determining the value of the property in question and the duty payable thereon. Even in spite of receipt of notice the vendee did not appear. Thereafter the Collector considered the report of the Sub-Registrar together with the sale statistics of the locality and on that basis determined the consideration of the land to be Rs. 7,200/- and accordingly called upon the vendee to pay the deficit stamp duty. It is this order of the Collector which is being assailed in the writ application by the vendors.

(3.) Mr. B. B. Mohanty, the learned counsel for the petitioners, raises the sale contention that in the enquiry held by the Collector under sub-section (2) of Section 47-A of the Act, the vendors are entitled to be noticed particularly when Form No. I issued under Rule 24 of the Orissa Stamp Rules clearly indicates that notice has to be given to the vendor. Learned Additional Standing Counsel, on the other hand, contends that the liability to pay the duty in case of a conveyance is on the vendee and, therefore, it is the vendee who is required to be noticed and since title passes on registering the instrument, the vendor has no liability and, therefore, is not required to be noticed. The rival contentions require a careful examination of the relevant provisions of the Act and -the Rules made and an interpretation of those provisions.