Orissa High Court holds that DLVC must adhere to Rule 37 constitution and can only fix biennial benchmark valuations, with 10% enhancement power residing solely with the Collector – affirming established precedents and serving as binding authority on valuation committees under Odisha Stamp Rules.
Summary
| Category | Data |
|---|---|
| Case Name | WP(C)/17618/2025 of MANORANJAN BEHERA Vs STATE OF ODISHA |
| CNR | ODHC010440052025 |
| Date of Registration | 26-06-2025 |
| Decision Date | 26-08-2025 |
| Disposal Nature | Disposed Off |
| Judgment Author | Mr. Justice Ananda Chandra Behera |
| Court | Orissa High Court |
| Bench | Single Judge |
| Overrules / Affirms | Affirms |
| Type of Law | Statutory interpretation (Odisha Stamp Rules, 1952) |
| Questions of Law |
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| Ratio Decidendi |
The Odisha Stamp Rules envisage that the DLVC fixes benchmark valuations by biennial revision, not by percentage enhancement. Only the Collector-cum-Chairman may enhance the previously fixed valuation by 10% under Rule 40(2) if the DLVC fails to revise within two years. Any percentage enhancement by the DLVC itself, without proper constitution under Rule 37 and without fixing specific revised values, is ultra vires. Annexures 3 and 4, enhancing valuations by percentage and lacking proof of Rule 37 compliance, are quashed. |
| Judgments Relied Upon |
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| Logic / Jurisprudence / Authorities Relied Upon by the Court | Statutory interpretation of Rules 37, 40, 41 of the Odisha Stamp Rules; application of Appendix II; precedents clarifying DLVC and Collector powers. |
| Facts as Summarised by the Court | Petitioner challenged DLVC and SDVC resolutions dated 27.01.2022 and 16.01.2024 for enhancing benchmark valuations by percentage without statutory procedure or proper committee constitution, seeking quashing under Articles 226/227. |
| Citations |
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Practical Impact
| Category | Impact |
|---|---|
| Binding On | Valuation committees and registering authorities under the Odisha Stamp Rules |
| Follows |
|
What’s New / What Lawyers Should Note
- Clarifies that the DLVC lacks statutory power to enhance benchmark valuations by percentage; it must fix specific revised values biennially.
- Confirms only the Collector-cum-Chairman may enhance a previously fixed valuation by 10% under Rule 40(2) if the DLVC fails to revise within two years.
- Emphasises strict compliance with Rule 37’s nomination requirements, including appointment of an expert valuer.
- Reinforces the availability of Article 226 writ jurisdiction to enforce statutory duties of valuation committees.
Summary of Legal Reasoning
- Rule 37 Constitution: The DLVC must comprise the Collector and two public nominees (one an expert valuer) for a two-year tenure.
- Rules 40 & 41 Scope: DLVC may only fix benchmark valuations by biennial revision; percentage enhancements are reserved for the Collector under Rule 40(2).
- Application to Annexures: Annexure-3 enhanced valuations by percentage without fixing area-wise revised values or showing committee’s mind. Annexure-4 lacked proof of proper constitution.
- Precedents Applied: Followed Division Bench rulings in Guruprasad Mohanty and Capital Bar Association quashing percentage enhancements and invalid committees.
- Conclusion: Annexures 3 and 4 are ultra vires and quashed; opposite parties directed to reconstitute committees under Rule 37 and fix revised valuations within three months, with Collector empowered to enhance 10% pending fresh fixation.
Arguments by the Parties
Petitioner
- DLVC’s resolutions enhanced benchmark valuations by over 100% without applying its mind or following statutory procedure.
- No evidence of proper constitution under Rule 37 (absence of expert valuer nominee).
Opposite Parties (State)
- Annexures 3 and 4 were prepared by DLVC and SDVC in accordance with law and based on SDVC resolution; not liable to be quashed.
Factual Background
The petitioner filed WP(C) No.17618/2025 under Articles 226 and 227 challenging:
- DLVC resolution dated 27.01.2022 (Annexure 3) enhancing benchmark valuations in Ganjam District by percentage.
- SDVC resolution dated 16.01.2024 (Annexure 4) underpinning that enhancement.
Statutory Analysis
- Rule 37: Constitutes District Level Valuation Committee with Collector and two public nominees (one expert valuer) for two years.
- Rule 40: Market values to be revised biennially; if DLVC fails, Collector may enhance by 10%.
- Rule 41: Values fixed must follow principles in Rule 39(a) and Appendix II.
- Rules 44–47: Provide for special revisions, public notices, enquiries, and administrative instructions.
Alert Indicators
- ✔ Precedent Followed – Affirms existing Orissa DB rulings on valuation committee powers.
Citations
- AIR 2009 (Orissa) 172 (D.B.) (Guruprasad Mohanty v. State of Odisha)
- 2013 (I) OLR 344 (Capital Bar Association v. State of Orissa)