IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH CWP No.3526 of 2009 Date of decision: March 5, 2009. M/s Malhotra Land Developers and Colonizers Pvt. Ltd. ...Petitioner(s) v. State of Punjab & Ors. ...Respondent(s) CORAM:HON'BLE MR. JUSTICE SURYA KANT 1. Whether Reporters of local papers may be allowed to see the judgment ? 2. Whether to be referred to the Reporters or not ? 3. Whether the judgment should be reported in the Digest? Present: Shri Sherry K. Singla, Advocate for the petitioner. ORDER Surya Kant, J. - (Oral): Notice of motion. On the asking of the court, Shri G.S. Attariwala, learned Additional Advocate General, Punjab, accepts notice on behalf of the respondents. Keeping in view the nature of order which I propose to pass, there is no necessity to seek counter affidavit from the respondents. The petitioner seeks quashing of the order dated 19/12/2007 (Annexure P-1) passed by the Collector, Ludhiana asking affixation of additional stamp duty to the tune of Rs.14,47,020/- in respect of the sale deed dated 14.11.2007 whereby land measuring 4856 sq. yards situated at village Kohara, Tehsil and District Ludhiana was purchased by the petitioner. The petitioner also seeks quashing of the order dated 3.6.2008 passed by the Commissioner, Patiala Division, Patiala dismissing the petitioner's appeal against the above mentioned order of the Collector. The petitioner is a colonizer and land developer. It has purchased land measuring 8 kanal and ½ marla, i.e., 4856 sq. yards at village Kohara on the ostensible sale consideration of Rs.14 lacs. The Collector, Ludhiana, after observing that the land is of commercial nature, has asked the petitioner to affix additional stamp duty to the tune of Rs.14,47,020/- as per the Collector's rate. The petitioner preferred an appeal which has also been dismissed by the appellate authority. Having heard Learned Counsel for the parties and on perusal of the impugned order, I am of the considered view that the matter requires re- determination by the Collector. It is a trite that Collector under Section 47- A of the Indian Stamp Act is obligated to determine the market value of the subject land. As held by the Hon'ble Supreme Court in the case of State of Punjab & Ors. v. Mohabir Singh & Ors., (1996)1 SCC 609, the Collector's rates is only a piece of evidence and can have some bearing on the determination of the market value. The same, however, cannot be the sole basis for such determination. In other words, the Collector was obligated to rely upon some other relevant material and then arrived at a conclusion that the land is of commercial potentiality attracting affixation of the stamp duty charges as per the prevailing market rates of such commercial properties. For the reasons afore-stated, the impugned order dated 19.12.2007 passed by the Collector, Ludhiana is set aside. As a necessary corollary thereof, the appellate order will also go and the same is quashed. The Collector, Ludhiana is accordingly directed to decide the matter afresh in accordance with law and keeping in view the observations made herein- above, as early as possible, but not later than three months from the date of receipt of a certified copy of this order. Since the sale transaction apparently involves a huge deficiency in affixation of the stamp duty, it is directed that the petitioner shall deposit a sum of Rs.7 lacs with the Collector within a period of one month from today and then only the matter shall be decided afresh. The deposit of the aforesaid amount by the petitioner shall be without prejudice to its legal rights. It is made clear that in case the petitioner fails to deposit the said amount, in that event both the impugned orders shall sustain and will be operative. March 5, 2009. [ Surya Kant ] kadyan Judge