- (1.) Heard Sri H.R. Misra, learned Senior Counsel assisted by Sri K.M. Misra for the petitioner and learned Standing Counsel for the State. Supplementary affidavit filed today is taken on record.
(2.) This is a Public Interest Litigation. The petitioner is a practising Advocate of this Court for about last 34 years. By this petition, he has challenged the validity of the, provisions of Uttar Pradesh Stamp (Valuation of Property) Rules, 1997 on the ground that under Rule 4(2) of the said rules the Collector of the District has been given unbridled unguided power to determine and revise the Circle Rates of immoveable property within the territorial limit of the District for charging Stamp Duty upon the instrument containing the transactions of conveyance, as such. Rule 4 of said Rules suffers from vice of excessive delegation. It is stated that Rules, 1997 does not provide any guiding principle or the material to be taken into consideration by the Authority, to whom the power has been delegated under Rule 4 of the Rules, 1997 to determine/revise the minimum value (Circle Rate) of the immovable property of the area for the purpose of imposing Stamp duty. The Government also did not frame separate guidelines fixing the norms and the principles for evaluating the minimum rate/market value of the area to be determined by. Authority concerned. Thus, the Authority/District Magistrate having been conferred unbridled and unfettered power under Rule 4 to revise the Circle Rate of the area, as such the rule in question is also ultra vires the Parent Act it is stated that Rule 4(2) of the Rules, 1997 is unconstitutional and invalid on the ground, that the rule making authority, that is the Government cannot further delegate the District Collector, to determine the minimum value/Circle Rate of the area.
(3.) It is stated that earlier to the aforesaid rule, there was another rule namely U.P. Stamp Rules, 1942. Chapter XV of the said Rules provided the rules for determining the market value of certain instrument. Under Rule 341-E of which it was provided that for the purposes of payment of Stamp Duty, the minimum market value of immoveable property forming the subject-matter of an instrument referred to under in Clause (c) of 340(1) may be equal to the value worked out on the basis of average price per square metre prevailing in the locality on the date of instrument. Whereas under new Rules 1997, to such guidelines or principles is provided for fixation of minimum rate for valuation of land. The aforesaid Rules existing earlier has been superseded and repealed by 1997 Rules, therefore, the aforesaid guiding factor existing under earlier Rules, have no application under the new Rule, 1997 and now it is open for the Collector to fix Circle Rate in whimsical and arbitrary manner as he likes, therefore, merely on this ground alone the provisions of said Rules can be struck down by this Court.;