THE BOMBAY STAMP ACT, 1958 - Igrmaharashtra.gov.in

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in favour of the Petitioner. It appears that the building in questionbelonged to Priyadarshani Co-operative Housing Society Limitedand the Owenership thereof vested in the said society and M/s.Century Enterprises were the Developers.3. The Court has construed several clauses of the said agreement.While construing the same the court has observed that theagreement was entered into only on 8 th October, 1987 andpossession was to be handed over by 30 th November, 1987, a veryshort time.4. The Court in para 19 of the judgement has observed that afterconsidering the submissions in the opinion of the court onconstruction of the agreement in question it must be held thatalthough it has been described as an agreement to sell in effect andfor all purposes it is a conveyance falling under section 2(g) of theAct inasmuch as the right title and interest in the flat standstransferred in favour of the Purchaser on payment of installmentprovided therein.5. The Court has further observed that on careful scrutiny of thedocument in question it is difficult to hold that it is a mereagreement of sale and does not create any right title and interest inthe petitioner. The Court further held that therefore, and saidagreement in question is a conveyance and whether the possessionis given on that date or not is not the relevant and decisive factor.The Court therefore, held that such a document is liable to stampduty under Article 25 in Schedule I of the Act. Thus according tothe court the agreement itself is a conveyance and not a deemedconveyance. It may be pointed out the court has not specified whatright title and interest by the said agreement is created in favour ofthe petitioner.Market Value1. Supreme Court has given an important judgement on ready reckoner/ guideline issued by the Stamp Authorities viz. Jawajee Nagnathamv. Revenue Divisional Office, Adilabad and Others (1994) 4 SCC595. The state of Andra Pradesh has enacted Section 47A of theIndian Stamp Act. Similarly many states have also enacted Section47A (which is like Section 32A of Bombay Stamp Act) of the IndiaStamp Act. Such Section 47 A provides as to how the instrumentwhich is undervalued should be dealth with. Almost all States havemade provisions for dealing with the instruments which according tothe Registering Officers undervalued after registering suchinstruments and not before registering the same as is the case withMaharashtra.2. Many States while providing Rules for deciding the market valueprovided that if any broad guideline that may be contained in the listprepared by the State Government falls within any of the principles
eferred to in Section 47A and Rules, the same may be considered.Such guidelines therefore, were follows by most of the stampauthorities. Such guidelines were challenged in many States andsome of the Courts had held that such guideline had no force of lawand should be treated only as guideline. The state of Andra Pradeshhad prepared the guidelines which is known as “basic valuationregister” in order to enable the registering office to verify whetherthe true market value was truly reflected in the instrument for thepurpose of stamp duty.3. The mater arose before the Supreme Court from the judgement andorder dated 29 th October 1982 of the Andra Pradesh High Court. TheHigh Court found that the basic valuation register had no evidentialvalue, and that it had no statutory basis. According to the SupremeCourt Section 47A clearly shows that the exercise of powerthereunder is with reference to a broad line covered by theinstrument brought for registration and that Section 47A conferred toexpress power to the Government to determine the market value ofthe lands prevailing in a broad area, village, block, district or theregion and to maintain basic valuation register for levy for stampduty for registration of an instrument etc. After considering variousjudgement and provisions of Section 47A as enacted by variousStates, the Supreme Court held that the basic valuation Register hasno statutory base.4. Thus according to the Supreme Court the basic value register orhuideline or ready reckoner by whatever name called has nostatutory force and value of each immovable property comprised inthe instrument has to be decided according to the Rules governingtrue market value.5. The Valuation departments has to make valuation of each individualproperty according to the Rules prescribed under the Stamp Act.The Principles to determine fair market value of the property arelaid down in various decisions of the Supreme Court. Theseprinciples are adopted while determining the compensation payablein respect of property under the Land Acquisition Act.The price has to be determined on the basis what a hypotheticalpurchaser willing to purchase land from the open market andprepared to pay reasonable price would offer. Assumption is that thevendor is willing to sell the land at a reasonable prince. Normally,authority takes into account genuine instances. The most comparableinstances out of the genuine instances have to be identified on theconsideration of proximity from time angle and from situs angle.After identifying the instances which provide the index of marketvalue, the price reflected therein, may be taken as a norm and thevalue of in question may be deduced by making suitable adjustmentsfor the plus and minus factors vis-a-vus land under consideration by
Page 2 and 3: Constitutional Position -Law relate
Page 4 and 5: to values of property especially in
Page 6 and 7: If the documents creates an obligat
Page 8: Notification - Addition Officers fo
Page 11 and 12: Agreements entered into before 10 t
Page 13 and 14: 3. The Court was constructed severa
Page 15 and 16: and the value of in question may be
Page 17: considering the correspondence that
Page 21 and 22: includes an instrument by which a p
Page 23 and 24: 5. Instrument relating to several d
Page 26 and 27: (d)with Securities and Exchange Boa
Page 28 and 29: 2. These words were substituted for
Page 30 and 31: 3 [Provided that the clearance list
Page 32 and 33: 1 [25. How transfer in consideratio
Page 34 and 35: Provided also that, where proceedin
Page 36 and 37: (E) -Duty by whom payable30 . Dutie
Page 39 and 40: Subjective satisfaction to be on ob
Page 41 and 42: 1 [(2) (a) If any officer registeri
Page 43 and 44: 1 [Provided further that, in respec
Page 45 and 46: NotesThe section applies to eight t
Page 47 and 48: he thinks just and proper; and the
Page 49 and 50: instrument from the party and, afte
Page 51 and 52: Government or where it bears the ce
Page 53 and 54: 37. Instruments impounded how dealt
Page 55 and 56: Subjective satisfaction to be on ob
Page 57 and 58: executed, some other person was bou
Page 59 and 60: (a) the stamp on any paper inadvert
Page 61 and 62: 50. Allowance for misused stamps.(1
Page 63 and 64: (2) The Chief Controlling Revenue A
Page 65 and 66: Under sub-section (2) if the Collec
Page 67 and 68: 1 [(4) Without prejudice to the pro
Page 69:
1 [59A. No prosecution und~ section
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THE BOMBAY STAMP ACT, 1958 - Igrmaharashtra.gov.in

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