Whether the expression "reason to believe" in Section 47-A of the Indian Stamp Act, 1899 reflects the subjective satisfaction of the authorities concerned or the objective determination of the market value of the property?

It is not synonymous with the subjective satisfaction of the officer. The belief must be held in good faith; it cannot be merely a pretence. It is open to the Court to examine whether the reasons for the belief have a rational connection or a relevant bearing to the formation of the belief and are not irrelevant or extraneous to the purpose of the section. Satisfaction is necessary in terms of material available on record, which should be based on objective satisfaction arrived at reasonably.

Indian Stamp Act, 1899 — s.47-A — Tamil Nadu Stamp (Prevention of Undervaluation of Instruments) Rules, 1968 — rr.3, 4, 6 and 7 — "Reason to believe" — Roving enquiry — Form I and Form II — Provisional order — Indian Stamp Act, 1899 — s.47-A — "Reason to believe" — Objective satisfaction — Held: The expression "reason to believe" is not synonymous with the subjective satisfaction of the officer; the belief must be held in good faith and cannot be merely a pretence. It is open to the Court to examine whether the reasons for the belief have a rational connection or a relevant bearing to its formation. (¶21) Indian Stamp Act, 1899 — s.47-A(1) — Reference to the Collector — Recording of prima facie reason — Held further: A Registering Officer may not undertake a roving enquiry to ascertain the correct market value, but is obliged to assign some reason for concluding that an instrument is undervalued. A document referred straightway without recording any prima facie reason vitiates the entire enquiry and the ultimate decision. (¶27) Rules, 1968 — rr.4(4), 6 and 7 — Provisional order and Form II — Final order — Held further: The Collector must pass a written order provisionally determining the market value, clearly indicating the basis on which it was arrived at, communicate it in Form II and receive representations before passing the final order. Passing the final order directly is in violation of Rules 4 and 6. Appeals dismissed. (¶30, 31)

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