Stamp valuation guidelines cannot fetter independent registering authority discretion under Section 47A

Section 47A of the Indian Stamp Act requires the Registering Officer to form an independent, quasi-judicial satisfaction that the value or consideration in an instrument has not been truly stated before making a reference to the Collector. Government guidelines fixing floor prices may serve only as prima facie material to alert the authority; they cannot replace the statutory discretion or compel acceptance of a predetermined minimum value. The document should be registered, and any doubt about valuation must be referred to the Collector under the statutory mechanism. Accordingly, executive instructions cannot override the Act's valuation process.

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Issues: Whether the Government guidelines fixing floor prices could control the Registering Authority's discretion under Section 47A of the Indian Stamp Act in determining whether the value stated in an instrument was truly reflected.

Analysis: The provision requires the Registering Officer to form an independent, quasi-judicial satisfaction that the value or consideration has not been truly set forth before making a reference to the Collector. The guidelines could operate only as prima facie material to alert the authority, but they could not substitute the statutory exercise of judgment or compel acceptance of a predetermined minimum value. The proper course under the provision is registration of the document, followed by reference to the Collector if the officer is not satisfied about the correctness of the value stated.

Conclusion: The guidelines were inconsistent with Section 47A and could not bind the Registering Authority. The decision was therefore in favour of the respondents.

Final Conclusion: The statutory scheme preserves the Registering Authority's independent satisfaction on valuation, with the Collector determining the matter on reference and appeal, and executive instructions cannot override that mechanism.

Ratio Decidendi: Administrative guidelines on valuation may assist the Registering Authority, but they cannot fetter the quasi-judicial discretion vested by statute to decide whether the consideration disclosed in an instrument is truly stated.

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