Section 7

Chapter VIII: SUPPLEMENTAL PROVISIONS 73. Books, etc. to be open to inspection.— Every public officer having in his custody any registers, books, records, papers, documents or proceedings, the inspection whereof may tend to secure any duty, or to prove or lead to the discovery of any fraud or omission in relation to any duty, shall at all reasonable times permit any person authorised 'in writing by the Collector to inspect for such purpose the registers, books, papers, documents and proceedings, and to take such notes and extracts as they may deem necessary, without fee or charge. 74. Power to make rules relating to sale of stamps.—The State Government may make rules for regulating— (a) the supply and sale of stamps and stamped papers, (b) the persons by whom alone such sale is to be conducted, and (c) the duties and remuneration of such persons: Provided that such rules shall not restrict the sale of ten naye paise or five naye paise adhesive stamps. {S.O. 1367 dated the 11th October, 1982— In exercise of the powers conferred by clause (a) of sub-section (1) of Section 9 and Section 74 of the Indian Stamp Act, 1899 (Act no. 2 of 1899). the Governor of Bihar is ploased to make rules that the duties of Stamp vendors and duties of Katibs (Deed writers) must not be performed by the same individual, 2. In view of the cleanliness of the Administration and for checking forgery and defaications it is highly desirable that the duties of a stamp vendor and that of deed writer should not be performed by the same person or individual, 3. This notification will come in force at once. [There is another notification also | Section 7: Security bond or mortgage deed, 57. Security bond or mortgage deed, '("The same duty as Bond (No. 15) executed by way of security for the due execution of an office, or to account for money or other property received by virtue thereof or executed by a surety to secured the due performance of a contract. Exemptions: Bond or other instrument, when executed- (a) by any person for the purpose of guaranteeing that the local income for the amount secured subject to the maximum limit of Rs. 1000/- (Rupees One thousand)". Chapter IV: INSTRUMENTS NOT DULY STAMPED 33. Examination and impounding of instruments.—(1) Every person having, by law or consent of parties, authority to receive evidence, and every person in charge of public office, except an officer of police, before whom any instrument, chargeable, in his opinion, with duly is produced or comes in the performance of his functions, shall if it appears to him that such instrument is not duly stamped, impound the same. (2) For that purpose every such person shall examine every instrument so chargeable and so produced or coming before him, in order to ascertain whether itis stamped with a stamp of the value and descriptidn required by the law in force in India, when such instruments was executed or first executed: Provided that — (a) nothing herein contained shall be deemed to require any Magistrate or Judge of a Criminal Court to examine or impound, if he does not think fit so to do, any instrument coming before him in the course of any proceeding other than a proceeding under Chapter XII or Chapter XXXVI of the Code of Criminal Procedure, 1898 (V of 1898); (b) in the case of a Judge of a High Court, the duty of the examining and impounding any instrument under this section may be delegated to such officer as the Court appoints in this behalf. (3) For the purposes of this section, in cases of doubt— (a) the State Government may determine what offices shall be deemed to be public offices; and (b) the State Government may determine who shall be deemed to be persons in charge of public offices. Comments and Case-law [An arbitration award is required to be made on stamped paper by Article 12. This defect in the arbitration award is curable under section 33 and it cannot be said that section 35 of the Stamp Act imposes a permanent bar on the powers of the court to make such an arbitration award a rule of the court, even if the defect 1. Ins.by Bihar Act 6 of 1937 (from 14,1938) 2. See now the Code of Criminal Procedure, 1973 (2 of 1974) | Section 7: of the Constitution is a wide one. State Legislature must be held to have power to enact legislation covering the entire field of Stamp duty. Provisions of section 47A having been enacted in order to neutralise the effect of under-valuation of instruments, must be held to be valid and within the legislative competence of Bihar Legislature. Umesh Thakur vs. State of Bihar, 1994 (1) PLJR 727. The correctness and the correct market valuation of the instrument can be looked into by the Collector can be exercised into within two years of the date of registration of the instrument. The limitation will not apply if the proceeding has been initiated by the Sub Registrar for determining the market value of the instrument and not by the Collector suo motu. Chandra C. Adesara & others vs. State of Bihar & others 1997 (2) PLJR 16. Section 47A (inserted by Bihar Amendment Act, 1988)—provision for fixing rates for valuation of landed properties for the purpose of registration—section 47A— shall not be applicable to documents presented for registration in pursuance of a decree for specific performance of the contract executed prior to coming into force of section 47A of the Act. Md. Bashiruddin vs. State of Bihar 2004 (3) PLUR 629. Section 47A (as amended by Bihar Amendment Act 15 of 1988)—not applicable to document presented for registration pursuant to a decree for specific performance of an agreement executed prior to coming into force of the inserted provision of the Act—agreement to sale entered between the petitioner and his vendor here is prior to introduction of section 47A—order for additional stamp duty on revaluation, quashed—document to be registered on valuation as mentioned in agreement to sell. Baiju Singh vs. State of Bihar 2004 (2) PLJR 743. Sections 27, 40, 47A and 64—penalty imposed by the Collector for under— valuing the property un 'er registration—assailed on the ground that already a penal provision u/s 64 is prov.ded under the Act—Section 64 of the Act relates to criminal intention of a person who is producing document to the authority for its registration— even if the provisions of Section 64 of the Act are made applicable, a person who under values a document, can not escape the provision of Section 40(1)(b) and Section 47A of the Act—if a person wants to defraud the State Government by not giving proper valuation of the property then he may not be allowed to say that he is liable to pay a fine of Rs. 5000/- only and should be made scot free—Sections 64 and 47A of the Act are not mutually destructive but are supplemental to each other. M/s Nasco Steel Pvt. Ltd. vs. State of Bihar, 2004(4) PLUR 470. Section 47A—the provision is not retrospective—not correct to strain the person liable to pay stamp duty by requiring him to pay the same on the basis of current market value for circumstances beyond his control—value on the date of agreement alone is relevant for stamp duly and not the value on the date by the court merge lapse of time between the date ot agreement and the execution of the document will not be the determining factor that the document is under—valued and this by itself is not sufficient to invoke power u/s 47A. Brij Nandan Singh vs. State of Bihar, 2006(3) PLUR 538. For the purpose of valuation of stamp duly on pre-empted land, value as on the date of transaction as ordered by court would be taken into account, Baidya Nath Prasad Singh vs. State of Bihar, 2007(3) PLJR 393. Seventh Schedule of the Constitution is a wide one. State Legislature must be held to have power to enact legislation covering the entire field of Stamp duty. Provisions of section 47A having been enacted in order to neutralise the effect of under-valuation of instruments, must be held to be valid and within the legislative competence of Bihar Legislature. Umesh Thakur vs. State of Bihar, 1994 (1) PLJR 727. The correctness and the correct market valuation of the instrument can be looked into by the Collector can be exercised into within two years of the date of registration of the instrument. The limitation will not apply if the proceeding has been initiated by the Sub Registrar for determining the market value of the instrument and not by the Collector suo motu. Chandra C. Adesara & others vs. State of Bihar & others 1997 (2) PLJR 16. Section 47A (inserted by Bihar Amendment Act, 1988)—provision for fixing rates for valuation of landed properties for the purpose of registration—section 47A— shall not be applicable to documents presented for registration in pursuance of a decree for specific performance of the contract executed prior to coming into force of section 47A of the Act. Md. Bashiruddin vs. State of Bihar 2004 (3) PLUR 629. Section 47A (as amended by Bihar Amendment Act 15 of 1988)—not applicable to document presented for registration pursuant to a decree for specific performance of an agreement executed prior to coming into force of the inserted provision of the Act—agreement to sale entered between the petitioner and his vendor here is prior to introduction of section 47A—order for additional stamp duty on revaluation, quashed—document to be registered on valuation as mentioned in agreement to sell. Baiju Singh vs. State of Bihar 2004 (2) PLJR 743. Sections 27, 40, 47A and 64—penalty imposed by the Collector for under— valuing the property un 'er registration—assailed on the ground that already a penal provision u/s 64 is prov.ded under the Act—Section 64 of the Act relates to criminal intention of a person who is producing document to the authority for its registration— even if the provisions of Section 64 of the Act are made applicable, a person who under values a document, can not escape the provision of Section 40(1)(b) and Section 47A of the Act—if a person wants to defraud the State Government by not giving proper valuation of the property then he may not be allowed to say that he is liable to pay a fine of Rs. 5000/- only and should be made scot free—Sections 64 and 47A of the Act are not mutually destructive but are supplemental to each other. M/s Nasco Steel Pvt. Ltd. vs. State of Bihar, 2004(4) PLUR 470. Section 47A—the provision is not retrospective—not correct to strain the person liable to pay stamp duty by requiring him to pay the same on the basis of current market value for circumstances beyond his control—value on the date of agreement alone is relevant for stamp duly and not the value on the date by the court merge lapse of time between the date ot agreement and the execution of the document will not be the determining factor that the document is under—valued and this by itself is not sufficient to invoke power u/s 47A. Brij Nandan Singh vs. State of Bihar, 2006(3) PLUR 538. For the purpose of valuation of stamp duly on pre-empted land, value as on the date of transaction as ordered by court would be taken into account, Baidya Nath Prasad Singh vs. State of Bihar, 2007(3) PLJR 393. Chapter IV: INSTRUMENTS NOT DULY STAMPED 33. Examination and impounding of instruments.—(1) Every person having, by law or consent of parties, authority to receive evidence, and every person in charge of public office, except an officer of police, before whom any instrument, chargeable, in his opinion, with duly is produced or comes in the performance of his functions, shall if it appears to him that such instrument is not duly stamped, impound the same. (2) For that purpose every such person shall examine every instrument so chargeable and so produced or coming before him, in order to ascertain whether itis stamped with a stamp of the value and descriptidn required by the law in force in India, when such instruments was executed or first executed: Provided that — (a) nothing herein contained shall be deemed to require any Magistrate or Judge of a Criminal Court to examine or impound, if he does not think fit so to do, any instrument coming before him in the course of any proceeding other than a proceeding under Chapter XII or Chapter XXXVI of the Code of Criminal Procedure, 1898 (V of 1898); (b) in the case of a Judge of a High Court, the duty of the examining and impounding any instrument under this section may be delegated to such officer as the Court appoints in this behalf. (3) For the purposes of this section, in cases of doubt— (a) the State Government may determine what offices shall be deemed to be public offices; and (b) the State Government may determine who shall be deemed to be persons in charge of public offices. Comments and Case-law [An arbitration award is required to be made on stamped paper by Article 12. This defect in the arbitration award is curable under section 33 and it cannot be said that section 35 of the Stamp Act imposes a permanent bar on the powers of the court to make such an arbitration award a rule of the court, even if the defect 1. Ins.by Bihar Act 6 of 1937 (from 14,1938) 2. See now the Code of Criminal Procedure, 1973 (2 of 1974) | Section 7: of the Constitution is a wide one. State Legislature must be held to have power to enact legislation covering the entire field of Stamp duty. Provisions of section 47A having been enacted in order to neutralise the effect of under-valuation of instruments, must be held to be valid and within the legislative competence of Bihar Legislature. Umesh Thakur vs. State of Bihar, 1994 (1) PLJR 727. The correctness and the correct market valuation of the instrument can be looked into by the Collector can be exercised into within two years of the date of registration of the instrument. The limitation will not apply if the proceeding has been initiated by the Sub Registrar for determining the market value of the instrument and not by the Collector suo motu. Chandra C. Adesara & others vs. State of Bihar & others 1997 (2) PLJR 16. Section 47A (inserted by Bihar Amendment Act, 1988)—provision for fixing rates for valuation of landed properties for the purpose of registration—section 47A— shall not be applicable to documents presented for registration in pursuance of a decree for specific performance of the contract executed prior to coming into force of section 47A of the Act. Md. Bashiruddin vs. State of Bihar 2004 (3) PLUR 629. Section 47A (as amended by Bihar Amendment Act 15 of 1988)—not applicable to document presented for registration pursuant to a decree for specific performance of an agreement executed prior to coming into force of the inserted provision of the Act—agreement to sale entered between the petitioner and his vendor here is prior to introduction of section 47A—order for additional stamp duty on revaluation, quashed—document to be registered on valuation as mentioned in agreement to sell. Baiju Singh vs. State of Bihar 2004 (2) PLJR 743. Sections 27, 40, 47A and 64—penalty imposed by the Collector for under— valuing the property un 'er registration—assailed on the ground that already a penal provision u/s 64 is prov.ded under the Act—Section 64 of the Act relates to criminal intention of a person who is producing document to the authority for its registration— even if the provisions of Section 64 of the Act are made applicable, a person who under values a document, can not escape the provision of Section 40(1)(b) and Section 47A of the Act—if a person wants to defraud the State Government by not giving proper valuation of the property then he may not be allowed to say that he is liable to pay a fine of Rs. 5000/- only and should be made scot free—Sections 64 and 47A of the Act are not mutually destructive but are supplemental to each other. M/s Nasco Steel Pvt. Ltd. vs. State of Bihar, 2004(4) PLUR 470. Section 47A—the provision is not retrospective—not correct to strain the person liable to pay stamp duty by requiring him to pay the same on the basis of current market value for circumstances beyond his control—value on the date of agreement alone is relevant for stamp duly and not the value on the date by the court merge lapse of time between the date ot agreement and the execution of the document will not be the determining factor that the document is under—valued and this by itself is not sufficient to invoke power u/s 47A. Brij Nandan Singh vs. State of Bihar, 2006(3) PLUR 538. For the purpose of valuation of stamp duly on pre-empted land, value as on the date of transaction as ordered by court would be taken into account, Baidya Nath Prasad Singh vs. State of Bihar, 2007(3) PLJR 393. 104] [ Secs. 48-49 istrati lued. Order for payment strument presented for registration found to be underva of Balun value passed without statutory compliance of Rules S and 10 of Bihar Instrument Valuation Rules. Impugned order not sustainable. Direction given to register the gift deed with valuation presented by petitioner. Radhika Devi vs. State of Bihar, 2007(4) PLUR 375.]