Lok Raj Saini Vs the State of Hp and Others

For the Petitioner: Mr. Suneet Goel, Senior Advocate with Mr.Vivek Negi, Advocate. For the Respondents: Mr. Anup Rattan, Advocate General with Mr. Ramakant Sharma, Additional Advocate General for respondents No.1 to 3. Mr. Nand Lal Thakur, Advocate for respondent No.4. Ms. Shreya Chauhan, Advocate for respondents No.5 and 6.

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Vivek Singh Thakur, Judge

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Petitioner has approached this Court invoking Article 226 of Constitution of India seeking following substantial relief:-

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“B. Issue writ in the nature of certiorari for quashing and setting aside revised circle rates notified on 9.7.2021, as well as those notified for the year 2022-23 (Annexure P-7

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2

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( 2025:HHC:31355 )

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Collectively) as being arbitrary, illegal, oppressive, unreasonable, unconstitutional, void ab-initio and nonest.

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2 The Revenue (Stamp Cell) Department of Government of Himachal Pradesh vide Notification dated 13.1.2012 had substituted the ‘Note’ existing under Appendix-XXI of H.P. Land Record Manual, providing procedure for valuation of the land in the State of Himachal Pradesh by classifying the land in three categories and dividing the areas in two categories i.e. Rural and Urban Areas with applicability of rates for valuation of the property and also providing procedure of revision of rates in Clause (C) thereof which reads as under:-

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“ (C ) Revision of Rate:

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The above exercise for fixation of rates in both rural and urban areas shall be undertaken immediately and the rates arrived at will be applicable w.e.f. 01.04.2012. In future also, the rates shall be fixed in March and be effective from 1^st April for an entire year. However, after the rates are fixed on 01.04.2012, no detailed exercise will be undertaken again. In each years, the Deputy Commissioner concerned shall notify an enhancement of rates as a percentage of previous rates separately for rural and urban areas in each Tehsil/sub Tehsil of the district. The enhancement will take into account actual transaction amount in previous year, inflation and special factors affecting a particular urban/rural area. The new rate so arrived at or the actual consideration amount whichever is higher, will be the applicable rate for

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3

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( 2025:HHC:31355 )

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calculating stamp duty/registration fee for any transaction.”

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3 Government of Himachal Pradesh in supersession of earlier Notification dated 13.1.2012 had re-notified the Rural and Urban Areas, categories of land for valuation, factors by which base rates thereof are to be multiplied by Factor-I, procedure for identifying the category of land for specific transaction and revision of rates, Clause B providing procedure for revision of rates is as under:-

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(B) Revision of rate

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The Deputy Commissioner may vary (increase, decrease or stable) the rates in each Revenue Estate of every Tehsil/Sub-Tehsil, falling under his/her jurisdiction for each financial year depending upon the transactions amount during previous year and any other factor like construction of new road, projects which may lead to escalation to rate of land sale prices etc. which are responsible for affecting the status of value of land in rural/urban areas of such Tehsil/Sub Tehsil. In future also, the rates shall be fixed in the month of March and they would be notified to be effective w.e.f. from 1^st April of that year till 31^st March of the next year.

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Provided that the rates shall be finalized after inviting objection(s)/suggestion(s) from the general public and duly considering the same. The opportunity of at least one month period may be given to general public to file their objection(s)/suggestion(s).”

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4

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( 2025:HHC:31355 )

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4 Notification dated 22.5.2020, issued by the Revenue Department (Stamp Registration) of Government of Himachal Pradesh, superseded the Notification dated 12.1.2016 providing fixation of market value/circle rates in Rural and Urban Areas, classification of land for valuation, categories of rates, fixation of market value/circle rates of land, Authority competent to notify market value/circle rates and procedure for notifying the category of land for a special transaction. Clause (A)(IV) of the Notification dated 22.5.2020 provides as under:-

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“ IV. Authority Competent to notify Market Value/Circle Rates- The Sub Divisional Officer (Civil) shall be competent to notify Market Value/Circle rates of land for each revenue estate/sub-estate in their respective jurisdiction. Such rates shall be fixed and notified for each financial year, on the basis of information supplied by the Tehsildars/Naib-Tehsildars. The Tehsildars/Sub-Tehsildars will generate the information on the basis of deeds executed/available in their respective offices.

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Since, the rates will be required to be notified on or before 31^st March of every year which will remain applicable for the ensuing financial i.e. w.e.f. 1^st April of the year to 31^st March of the next year, the transactions taken place with effect from 1^st March to last day of February of subsequent calender year, shall be taken into consideration for calculation of “Weighted Average”.

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Provided that concerned District Collector shall monitor and ensure that market value/circle rates are

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5

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( 2025:HHC:31355 )

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notified by each and every Sub-Divisional Officers(Civil) well within the time.”

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5 From the above Notifications of the Government, it is clear that rates are required to be notified on or before 31^st March of every year which will remain applicable for the ensuing financial year i.e. w.e.f. 1^st April of the year to 31^st March of next year and the transaction taken place w.e.f. 1^st March to last date of February of subsequent calender year shall be taken into consideration for calculation of weighted average. Weighted Average has been defined as under:-

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“ Weighted Average”, means the total consideration amount involved in land transactions taken place in a particular revenue estate/sub-estate, in a particular year, divided by total area (in square meters), involved in such transactions, excluding small transactions.”

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6 In consonance with procedure prescribed in the aforesaid Notifications the circle rate of land in the area of Tehsil/Sub-Tehsil, Mandi, District Mandi was notified on 31.3.2021 vide Annexure P-6 wherein circle rates for Village Bijan-3901 were notified as under:-

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Sr. No.	Village	Per Unit	Categor	y-I(0-100	mtr)	Category	-II(>100	mtr)
			National Highway Road	State Highway Road	Other Road	National Highway Road	State Highwa yRoad	Other Road
25	Bijan- 3901	Square Meter	10766	3667	3582	7813	3372	573

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6

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( 2025:HHC:31355 )

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7 The aforesaid circle rate was valid from 1.4.2021 to 31.3.2022.

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8 Vide communication dated 4.5.2021 clarification regarding fixation of market value/circle rates of landed property was issued by Revenue Department (Stamp Cell) of Government of Himachal Pradesh through Additional Chief Secretary (Revenue) to the Government of Himachal Pradesh to all Deputy Commissioners in Himachal Pradesh which reads as under:-

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“…..I am directed to refer to the subject cited above and to say that the matter regarding inordinate rise or fall in circle rates has been examined in the department in consultation with Inspector General of Registration, and in view of a large number of queries in this regard, it has been decided that the para-III (Market value/Circle rates etc.) of the Notification No. Rev.Stamp (F) 6-1/2009-III, dated 22.05.2020 regarding the factors to be taken into consideration while determining the market value/circle rates etc. will be subject to the following conditions to prevent the irrational/abrupt rise or fall in the circle rates:-

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A single transaction may not be considered while working out the weighted average and the circle rates in all revenue villages in which no transaction or single transaction has taken place may either be kept unchanged or the circle rates of adjoining or similarly situated revenue village within the District may be adopted after analysing various factors with prior approval of the District Collector.

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7

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( 2025:HHC:31355 )

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The rise or fall in circle rates may be limited to maximum 7.5% of the circle rates of the previous financial year in a revenue village provided that District Collector in a specific case may deviate from the condition by passing speaking order clearly stating justification for such deviation.

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You are requested to take further necessary action accordingly……..”

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9 In sequel to aforesaid clarification vide Notification dated 9^th July, 2021 Annexure P-7 Sub Divisional Collector, Sadar Mandi, District Mandi re-notified circle rates for the financial year 2021-22 applicable w.e.f. 1.4.2021 to 31.3.2022 and circle rates of village Bijan were notified as under:-

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Sr. No.	Village	Per Unit	Categor	y-I(0-100 m	tr)	Category	-II(>100	mtr)
			National Highway Road	State Highway Road	Other Road	National Highway Road	State Highwa yRoad	Other Road
25	Bijan- 3901	Square Meter	2419	1616	10938	977	1037	1319

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10 From Notification dated 31.3.2021, Annexure P-6, and Notification dated 9.7.2021 Annexure P-7, it is apparent that the circle rate for village Bijan per unit/square meter abutting the National Highway Road, State Highway Road and other Road in Category-I (0 to 100 mtr) was determined Rs.10766, 3677 and 3582 and the same in

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8

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( 2025:HHC:31355 )

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Category II (more than 100 metres) from National Highway, State Highway road and other roads was Rs. 7813, 3372 and 573.

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11 In Notification dated 9.7.2021 the order of value of land in Category-I has been reversed and circle rate of land abutting to National Highway Road, State Highway Road and other Road has been notified as Rs.2419, 1616 and 10938 instead of Rs.10766, 3667 and 3582 respectively.

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12 It is well known that value of land abutting to National Highway would be higher than the land abutting to the State Highway road and value of land abutting to other road shall be least in these kinds of land. But vide Notification dated 9.7.2021 value of land abutting to Other Road has been notified as Rs.10938, whereas value of land abutting to National Highway and State Highway has been notified as Rs.2419 and Rs.1616 respectively which, on the face of it, depicts that there is some mistake committed by the competent Authority.

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13 Respondents have claimed Re-notification of circle rate vide Notification dated 9.7.2021 was and is in sequel to Clarification dated 4.5.2021.

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14 It is also apt to notice that in Clarification dated 4.5.2021 there is no direction to re-determine the circle rates already notified during previous year on the basis of instructions prevailing at that time for the financial year commencing from 1.4.2021 to 31.3.2022.

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9

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( 2025:HHC:31355 )

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Further that Clarification dated 4.5.2021 does not provide any new norm or guidelines, other than the norms or guidelines already notified vide Notifications dated 13.1.2012, 12.1.2016 and 22.5.2020 and therefore, the Notification of circle rates vide Notification dated 9.7.2021 appears to be arbitrary.

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15 From the above facts, it is apparent that Notification dated 9.7.2021, Annexure P-7, is against the mandate of Notifications dated 13.1.2012, 12.1.2016 and 22.5.2020 as these Notifications dealing with value of land and Notification of circle rates nowhere provides re-determination of circle rates in mid financial year. It is not a case of respondents that earlier Notification of circle rates vide Notification dated 31.3.2021 was based on extraneous consideration or was not in consonance with procedure prescribed in H.P. Land Record Manual as well as Notifications dated 13.1.2012, 12.1.2016 and 22.5.2020.

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16 Respondents have failed to demonstrate the reason for re-notifying the circle rates during mid financial year and also the basis causing to Re-notification of circle rates as well as alteration in cricle rates already notified vide Notification dated 31.3.2021, as well as reason for determining value of land abutting to National Highway, State Highway and other roads in ascending order. Therefore, mid financial year Notification dated 9.7.2021 notifying the circle rates for

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10

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( 2025:HHC:31355 )

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the financial year 2021-22 is arbitrary, illegal, oppressive and unreasonable.

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17 Accordingly, Notification dated 9.7.2021 along with circle rates notified therewith for financial year 2021-22 is quashed and set aside. As a consequence thereof, Notification of circle rates notified for the financial year 2022-23 also stands quashed and set aside and respondents are directed to undertake a fresh exercise for determining the circle rates for the financial year 2022-23 after taking into consideration and following the procedure prescribed under H.P. Land Record Manual as well as Notifications dated 13.1.2012, 12.1.2016 and 22.5.2020 and also circle rates notified vide Notification dated 31.3.2021, Annexure P-6.

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Accordingly, the petition is allowed and disposed of in aforesaid terms. Pending miscellaneous application(s), if any, also stand disposed of.

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(Vivek Singh Thakur), Judge.

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12^th September, 2025(ms) (Sushil Kukreja), Judge.

Lok Raj Saini v. the State of Hp and Others

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Lok Raj Saini v. the State of Hp and Others

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