In CWP-10586-2021-PUNJ HC- Prescribed period for initiation of proceedings u/s 47-A(3) of Indian Stamp Act, 1899 is three years and no proceedings can be initiated after expiry of such period: P&H HC Justice Jaishree Thakur [02-08-2022]

Read Order: SURINDER SINGH V. STATE OF PUNJAB AND OTHERS

Monika Rahar

Chandigarh, August 3, 2022: Referring to Section 47-A (3) of the Indian Stamp Act, 1899, the High Court of Punjab and Haryana has held that the period prescribed for initiation of proceedings under such provision is three years and no proceedings can be initiated after the expiry of period of three years.

In brief, the facts are that a sale deed was executed and registered in the name of the petitioner for a total consideration of Rs. 8,75,000/-. The stamp duty of Rs 70,000/- was paid. The sale deed was registered by the Sub-Registrar, Moga and at that time, the sale deed was not impounded on account of inadequate stamp duty and was returned to the petitioner after registration. 

The office of the Deputy Controller (Finance and Accounts), Internal Audit Institute (Revenue), Ludhiana sent an audit memo to Tehsildar-cum-Sub Registrar, Moga pointing out that there was a loss of Rs. 1,73,250/- towards deficiency of stamp duty and registration fee on the sale deed in question. 

On the basis of the audit report, the Sub-Registrar-cum-Tehsildar made a reference to the Collector informing him that an amount of Rs. 1,73,250/- was to be recovered as deficient stamp duty. Thereafter, the Collector initiated the proceedings under Section 47-A of the Indian Stamp Act against the petitioner regarding the deficient stamp duty detected during audit, resulting in the impugned orders.

It was the case of the petitioner’s counsel that the impugned orders were unsustainable, as the Sub-Registrar, Moga while registering the instrument did not impound the sale deed nor was any reference made to the Collector at his own instance. The sale deed was handed

over to the petitioner after registration of the same, the Counsel adde while arguing that the proceedings were initiated by the Collector under Section 47-A(3) of the Indian

Stamp Act, 1899 asking for deficient stamp duty beyond the stipulated period of limitation.

After hearing the parties, the Bench of Justice Jaishree Thakur observed that the sale deed came to be registered on May 21, 2012 by the Sub-Registrar but at that point of time, he did not impound the same nor did he send a reference to the Collector as envisaged under Section 47-A (1) of the Indian Stamp Act, as applicable to the State of Punjab.

Further, after perusing the provisions of Section 47-A of the Indian Stamp Act, the Court observed that a plain reading of sub-section (3) of Section 47-A of the Indian Stamp Act, 1899 clearly shows that the period prescribed for initiation of proceedings under the said provision is three years and no proceedings can be initiated after the expiry of three years. 

Such being the situation, the proceedings initiated by the respondents in February 2017 were held by the Court to be unjustified. 

In view of the finding rendered above, the instant writ petition was allowed and the impugned orders were quashed.