Government Of Andhra Pradesh & Ors vs Smt. P. Laxmi Devi

8. The respondent herein, had agreed to purchase land bearing S.No.594/B situated at village Kapra of Keesara Mandal of Ranga Reddy District. The agreement of sale was entered into on 25.1.1989 and as there was breach of performance of the contract on the part of the prospective vendor, a suit being O.S. No.1416 of 1997 was filed before the II Additional Senior Civil Judge, Hyderabad and the same was decreed. When the sale deed was not executed pursuant to the decree, Execution Petition No.5 of 2000 was filed. An officer of the Court was deputed to present the sale deed, which was stamped according to the directions of the Senior Civil Judge.

9. The registering authority raised objection with regard to the quantum of non-judicial stamp on which the sale deed was engrossed. By letter no.288/2000 dated 19.2.2000, the registering authority, the Sub-Registrar, Malkajigiri, Ranga Reddy District, conveyed to the Second Senior Civil Judge, City Civil Court, Hyderabad that the document has to be referred under Section 47A and as a condition precedent for such reference, called upon the party i.e. the respondent herein, to pay duty on 50% of the differential amount according to the estimate made by him. Against this demand the respondent filed a writ petition in the High Court.

11. A counter affidavit was filed by the State Government in the writ petition. The relevant paragraphs in the counter affidavit are quoted below :

27. In view of the above, we are clearly of the opinion that Section 47A of the Indian Stamp Act as amended by A.P. Act 8 of 1998 is constitutionally valid and the judgment of the High Court declaring it unconstitutional is not correct.

We respectfully agree with the views expressed above, and endorse Thayer's doctrine of self restraint.

D. Some difficulties in the practical application of Thayer's Doctrine:

67. Some broad principles to resolve these difficulties are given below.

(emphasis supplied)

69. All decisions in the economic and social spheres are essentially ad hoc and experimental. Since economic matters are extremely complicated, this inevitably entails special treatment for special situations. The State must therefore be left with wide latitude in devising ways and means of fiscal or regulatory measures, and the Court should not, unless compelled by the statute or by the Constitution, encroach into this field, or invalidate such law.

79. We respectfully endorse the view of Mr. Justice Holmes, as stated above.

(emphasis supplied)

We respectfully agree with the above views.

92. Why is it that the Courts both in India and in America have taken an activist approach in upholding the civil liberties and rights of the citizens? In our opinion, this is because freedom and liberty is essential for progress, both economic and social. Without freedom to speak, freedom to write, freedom to think, freedom to experiment, freedom to criticize (including criticism of the Government) and freedom to dissent there can be no progress.

94. In view of the fact that the impugned amendment is an economic measure, whose aim is to plug the loopholes and secure speedy realization of stamp duty, we are of the opinion that the said amendment, being an economic measure, cannot be said to be unconstitutional.

95. In view of the above observation, this appeal is allowed and the impugned judgment is set aside and the constitutional validity of the amended Section 47A of the Stamp Act is upheld. In the facts and circumstances of the case, there shall be no order as to costs.