2016 (11) TMI 81 - HC - Indian Laws

Determination of the Market Value of an immovable property based on Proposed Land Use - whether information obtained by the Registering Officer on the basis of the details provided by the applicant in the appropriate form mentioned in Appendix V of the West Bengal Registration Rules, can mandatorily include such information required to be provided under the column specifically relating to Proposed Land Use ? - Held that - The rate per square feet of market value of any flat or structure for residential use shall be determined on the basis of the highest rate on which such flat or structure of similar nature in the same locality or a comparable locality has been transacted during the five consecutive years immediately preceding the year of preparation of annual statement of rate of such flat or structure. While determining the rate per square feet of market value of any flat or structure for commercial use or semi-commercial use, the rate per square feet of market value of flat or structure for residential use in the same locality shall be appreciated following the same methodology as elucidated in clause (13) under Rule 3B. Thus, following the scheme of the Rules as introduced by the 2010 amendment of the West Bengal Stamp (Prevention of Undervaluation of Instruments) Rules, 2001, this Court is of the view that there cannot be an indefinite period of time attached to the details as required to be filled-up under the column Proposed Land Use and it is imperative to attach a time frame to the details to be filled-up under the said column. Such time frame should be in sync with the scheme of Rules 3A, 3B, 3C, 3D and 3E and ideally, five years. The concerned authority of the State of West Bengal is directed to incorporate such time frame in the column, Proposed Land Use , accordingly. Such incorporation shall be carried out as expeditiously as possible, preferably within a period of eight weeks, but not later than twelve weeks from date of communication of a photostat certified copy of the order.

Issues Involved:
1. Legality of determining "Market Value" based on "Proposed Land Use".
2. Compliance with the West Bengal Stamp (Prevention of Undervaluation of Instruments) Rules, 2001.
3. Alleged arbitrary and illegal determination of market value and stamp duty.
4. Introduction of "Proposed Land Use" column in West Bengal Registration Rules, 1962.
5. Jurisdiction and authority of the Registering Officer.
6. Violation of constitutional rights and principles of natural justice.

Issue-Wise Detailed Analysis:

1. Legality of Determining "Market Value" Based on "Proposed Land Use":
The petitioners argued that determining the market value of immovable property based on "Proposed Land Use" is illegal and contrary to the West Bengal Stamp (Prevention of Undervaluation of Instruments) Rules, 2001. The court examined various judicial pronouncements and statutory definitions, concluding that "Market Value" includes potential value, which encompasses future use. The court held that the column "Proposed Land Use" is necessary for determining the potential value and is not illegal or contrary to the rules.

2. Compliance with the West Bengal Stamp (Prevention of Undervaluation of Instruments) Rules, 2001:
The petitioners contended that the determination of market value based on "Proposed Land Use" violates the 2001 Rules. The court noted that the 2001 Rules, especially after the 2010 amendments, provide a complete mechanism for determining market value, including the use of the CORD software. The court found that the rules mandate obtaining information regarding the proposed land use for accurate market value determination, thus complying with the 2001 Rules.

3. Alleged Arbitrary and Illegal Determination of Market Value and Stamp Duty:
The petitioners claimed that the respondents were arbitrarily determining market value and stamp duty based on anticipated future events. The court, referencing statutory provisions and judicial precedents, found that the determination of market value based on potential future use is lawful and not arbitrary. The court emphasized that the statutory definition of market value includes potential value, justifying the current practice.

4. Introduction of "Proposed Land Use" Column in West Bengal Registration Rules, 1962:
The petitioners challenged the introduction of the "Proposed Land Use" column in the registration forms, arguing it was illegal. The court examined the amendments made to the West Bengal Registration Rules, 1962, and the 2001 Rules, concluding that the introduction of this column was in line with the statutory requirements for determining market value. The court held that the column is essential for assessing potential value and is legally valid.

5. Jurisdiction and Authority of the Registering Officer:
The petitioners argued that the Registering Officer exceeded their jurisdiction by requiring disclosure of proposed land use. The court found that the Registering Officer is mandated by the 2001 Rules and the West Bengal Registration Rules, 1962, to obtain such information for determining market value. The court held that the officer's actions were within their statutory authority.

6. Violation of Constitutional Rights and Principles of Natural Justice:
The petitioners claimed that their constitutional rights under Articles 14, 19, and 300A were violated and that the actions of the respondents were against the principles of natural justice. The court, after examining the statutory framework and judicial precedents, concluded that the determination of market value based on proposed land use is lawful and does not violate constitutional rights or principles of natural justice.

Conclusion:
The court dismissed the writ petition, upholding the legality of determining market value based on proposed land use. The court directed the State of West Bengal to incorporate a time frame for the "Proposed Land Use" column, ideally five years, in line with the scheme of the rules. The judgment also applied to W.P.no. 1268 of 2015, which was disposed of accordingly.

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