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TMI Blog2016 (11) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... reciated 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. - WP No.1224 of 2015 - - - Dated:- 5-10-2016 - JUSTICE BISWANATH SOMADDER For the Petitioners : Mr. Ashok Kumar Banerjee, Senior Advocate, Mr. Aniruddha Mitra, Advocate, Ms. Swati Bhattacharyya, Advocate, Mr. Aditya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the office of the B.L and L.R.O. Separate application is required to be made with the concerned office of the B.L and L.R.O seeking permission for such conversion. Granting of such conversion is based on several rules, regulations and bye-laws which may or may not be granted by the office of the B.L and L.R.O depending on the prevailing circumstances. Moreover, the B.L and L.R.O also charges conversion fees, as applicable. The writ petitioners have further stated that ascertainment of market value and stamp duty payable is being done on anticipation and apprehension of happening of a future event. The same is, therefore, bad in law. Being taxed at a higher rate upon anticipation of a future event is against the basic structure of Indian laws. The respondents are illegally and arbitrarily determining the market value of an immovable property based on proposed land use and fixing stamp duty payable accordingly. The West Bengal Stamp (Prevention of Undervaluation of Instruments) Rules, 2001 (hereinafter referred to as the 2001 Rules ) do not take into consideration the proposed land use while preparing annual statement of market value of immovable property. Further, at the time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Indian Stamp Act, 1899 and the 2001 Rules and the 2001 Rules provide for classification of land after taking into account the use of land for the purpose of preparation of annual statement of rates of land. Therefore, nature of use of land is one of the factors to be considered for preparing the annual statement of rates of immovable property. The petitioners have not challenged the relevant provisions of the 2001 Rules or the West Bengal Registration Rules, 1962. The said Rules empowered the Registering Officer to demand disclosure of proposed land use before registering the document. Hence, the writ petitioner has not made out any case for interference by this Court sitting in its high prerogative writ jurisdiction. The 2001 Rules provide for determination of valuation of a land for preparation of an annual statement of rates of market value of an immovable property on the basis of proposed use of land. If the proposed use of land is mentioned as Shali , the Registering Authority does not refuse to register it and asks the applicant to change the proposed use to either Bastu or Industrial . The ascertainment of market value and stamp duty are not being done based on antic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d harassing and is liable to be dismissed with exemplary cost. In order to buttress his submission based on the stand taken by the State in its two affidavits, as summarized above, the following judgments were referred to by the learned Advocate General appearing on behalf of the State respondents: Raghubans Narain Singh v. Uttar Pradesh Government through Collector of Binjor reported in AIR 1967 SC 465. Dadu Yogendra Nath Singh and Ors. v. The Collector, Seoni reported in 1977 (2) SCC 1. Prithvi Raj Taneja v. The State of Madhya Pradesh and another, reported in 1977 (1) SCC 684. Atma Singh (Dead) Through Lrs. Others v. State of Haryana Another, reported in 2008 (2) SCC 568. Digamber Others v. State of Maharashtra Others, reported in 2013 (14) SCC 406. P.Ram Reddy and others v. Land Acquisition Officer, Hyderabad Urban Development Authority, Hyderabad and others reported in 1995 (2) SCC 305. Sabhia Mohammed Yusuf Abdul Hamid Mulla (dead) by Lrs. And Ors. v. Special Land Acquisition Officer and Others reported in 2012 (7) SCC 595. Census Commissioner and Ors v. R. Krishnamurthy, reported in 2015 (2) SCC 796. In reply, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... potential value as espoused in N.B. Jeejabhoy v. The District Collector, Thana, Civil Appeals Nos. 313 to 315 of 1965, D/-30-8-1965 (SC) was quoted as under: A vendor willing to sell his land at the market value will take into consideration a particular potentiality or special adaptability of the land in fixing the price. It is not the fancy or the obsession of the vendor that enters the market value, but the objective factor namely, whether the said potentiality can be turned to account within a reasonably near future. The question therefore turns upon the facts of each case. In the context of building potentiality many questions will have to be asked and answered, whether there is pressure on the land for building activity, whether the acquired land is suitable for building purposes, whether the extension of the said activity is towards the land acquired, what is the pace of the progress and how far the said activity has extended and within what time, whether buildings have been put up on lands purchased for building purposes, what is the distance between the built-in-land and the land acquired and similar other questions will have to be answered. It is the over-all picture d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e land whether for commercial purpose or not should be the relevant criteria for determining the market value while applying the principles laid down in Atma Singh (supra). In other words, for ascertaining the market value of the land, the potentiality of the acquired land should also be taken into consideration. In P.Ram Reddy and others v. Land Acquisition Officer, Hyderabad Urban Development Authority, Hyderabad and others reported in 1995 (2) SCC 305, it was held, inter alia, to the effect that building potentiality of acquired land is required to be taken into account while determining its market value with reference to the date envisaged under section 4(1) of the Land Acquisition Act. Such market value of the acquired land cannot only be its value with reference to the actual use to which it was put on the relevant date envisaged under of the Land Acquisition Act, but ought to be its value with reference to the better use to which it is reasonably capable of being put in the immediate or near future. Possibility of the acquired land put to certain use on the date envisaged under section 4(1) of the LA Act, becoming available for better use in the immediate or near futu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exercise of the power conferred under clause (16B) of section 2 read with sections 27, 47A and 75 of the Indian Stamp Act, 1899 and came into force from 15th March, 2001. Rule 3 of the 2001 Rules provides for the manner of determination of market value and furnishing of particulars relating to any property. In order to arrive at the correct market value and in order to eliminate undervaluation, the Registering Officer appointed under the Registration Act, 1908 after receiving the instruments of conveyance is required to ascertain the market value of the property, which is the subject matter of such instruments in the manner prescribed and compute the proper stamp duty chargeable on the market value so ascertained, in the event he has reasons to believe that the market value of the property which is the subject matter of the relevant instrument has not been truly set forth in that instrument presented for registration. In this context, one may take notice of section 47A of the Indian Stamp Act (introduced under the Indian Stamp (West Bengal) Amendment Act of 1998). If a person is aggrieved by an order determining the market value passed by the Registering Officer under su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... market value when using the CORD software. Rule 3A provides the manner in which market value is required to be determined when an instrument is registered through the system of CORD. Rules 3B to 3E are the statutory modalities prescribed by the State for the purpose of determination of the market value (as defined under clause 16(B) of section 2 of the Indian Stamp Act, 1899) in relation to any land or any land with building or any flat used for residential or commercial or semi commercial purpose when an instrument is registered through the system of CORD. It is noticed that Rule 3E which is in respect of forms for obtaining information regarding immovable property specifically provides that every Registering Officer shall obtain information in respect of any immovable property from the person in the appropriate form mentioned in Appendix V of the West Bengal Registration Rules. Sub-Rule (2) under Rule 3E further provides that every Registering Officer may call for production of any document for the purpose of verifying whether all the facts for determination of market value of the property, which is the subject matter of the instrument, has been truly set forth as mentioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atement of rates of immovable property, annually. The guidelines for preparation of annual statement of market value of immovable property and the principles for such determination of the market value has been clearly laid down under Rules 3B 3C. If one reads the guidelines and principles carefully, one would notice that preparation of market value of the concerned land and the rate per square feet of market value of any flat or structure for residential or commercial or semi-commercial use has to be determined in the manner laid down under the various clauses under Rule 3B. What appears to be noteworthy is the recurrence in some of the clauses of a period of five consecutive years immediately preceding the year of preparation of annual statement of market value of immovable property, taken as one of the methods of computation. While determining market value of the concerned land, whether such land has been transacted during the five consecutive years immediately preceding the year of preparation of annual statement of market value of immovable property, is required to be taken into consideration amongst other factors. Similarly, the rate per square feet of market value of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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