Suresh Kumar and Others vs State of Punjab and Others

T.H.B. Chalapathi, J.—The petitioners obtained Industrial Plots on lease from the Punjab State Small Industries Corporation, Chandigarh. The said leasedeeds are for a period of 99 years. These lease deeds were executed and registered at the office of Sub Registrar, Bhatinda on 17.6.1978. Thereafter, the Naib Tehsildar served notices on the petitioners on 18.11.1980 demanding each of the petitioners, to pay a sum of Rs. 2922/- as stamp duty and Rs. 983/- as registration fee. Questioning the notices, issued by the Tehsildar cum Assistant Collector IInd Grade, Bhatinda u/s 68 of the Punjab Revenue Act, the petitioners filed this writ petition.

Learned counsel for the petitioners argued that once the lease deed is registered, there is no provisions in stamp Act, which enables the authorities to recover the deficit stamp duty and registration fee. He has further contended that is not a case where recovery was ordered by the Collector under the provisions of the Indian Stamp Act (for short ''the Act). Learned Assistant Advocate General, Punjab contended that during audit it was found that the lease deeds were not stamped according to the provisions of the Indian Stamps Act and, therefore, the notices have been issued to recover the requisite stamp duty and registration fee.

There is no dispute that the lease-deeds had been executed and registered by the Punjab State small Industries Corporation in favour of the petitioners on 17.6.1978 at the office of the Sub Registrar, Bhatinda case. Once the lease-deeds were registered, they can only be impounded, if they are found to be insufficiently stamped by the Collector u/s 40 of the Indian Stamp Act. There is no provisions in the Indian Stamp Act apart from Section 40, to recover deficit stamp duty. The registering authority is not empowered to call upon either the executant or beneficiary to pay the deficit stamp duty, subsequent to and long after the registration of the document. After registraration of the documents the Registering authority becomes functus officio. The provisions of Chapter (4) of the Indian Stamp Act will apply to the document not duly stamped. Under the provisions of Chapter (4) of the Stamp Act, if a document not properly stamped, is produced before any authority, the same may be received in evidence only after imposing of the penalty. Apart from the provisions of Chapter (4), there is no provision for recovery of deficit stamp Duty. Therefore, the notices issued to the petitioners u/s 68 of the Punjab Revenue Act for recovery of stamp duty and registration fee are not justified.

The writ petition is accordingly allowed and the notices issued under An-nexure P-1 are hereby quashed but this order will not come in the way of the Collector but this order will not come in the way of the Collector to impound the document under the provisions of the Indian Stamp Act.