' UMAR ATA BANDIAL, J.---The petitioner is widow of late Ch. Muhammad Manzoor who has passed away. The deceased has four children who along with the petitioner are his legal heirs. By a declaratory judgment of a learned Civil Court dated 30-4-2008 the said persons have been determined to be the legal heirs of the deceased. Thereafter by a surrender deed dated 13-5-2008 registered in the record of the Sub-Registrar, Samanabad Town, Lahore on 4-6-2008 the four children of the deceased have surrendered their right and interest in residential property of the deceased measuring 8-M, 210 sq.Ft. In favour of their mother, the petitioner who is a legal heir of deceased. The said surrender deed has been valued at Rs,50,000 and requisite stamp duty in the amount of Rs,1,000 has been affixed thereon. When the petitioner sought the transfer of the title of the said property to her name in the records of the respondent Excise and Taxation Department, the latter objected that the deed of surrender is not valued properly and refused to make the transfer entry.
2. Learned counsel for the petitioner has explained that under the provision of section 27-A of Stamp Act, 1899 the valuation of immovable property is required to be done at the Collector's rate only in three cases. These are the cases of conveyance under Article 23(b) of Schedule I of Stamp Act, 1899 the case of exchange covered by Article 31(b) of the said Schedule and the case of gift covered by Article 33(b) of the said schedule. The present instrument of transfer is a surrender deed, which is not covered by any of the foregoing three modes of transfer. Consequently, in the case of surrender deed he submits that valuation for purpose of stamp duty at the Collector rate is not necessary and may be fixed according to the will of the parties.
3. Learned A.A.-G. Had initially objected to the said submission on the ground that a surrender deed and its valuation are capable of being challenged subsequently by the transferor in a case as held.
He has relied on Abdul Sattar v. Mst. Anar Bibi and others PLD 2007 SC 609. That was a case of transfer by a minor and consequently the need for enhanced caution was expressed by the Hon'ble Supreme Court of Pakistan.
4. In the present case the executants of the surrender deed are adults having capacity to make contract, therefore, there is no possibility of subsequent renunciation of transaction. In so far as the main question of valuation is concerned the provisions of section 27-A ibid do not apply to a transfer by surrender deed. Consequently, the executants of a surrender deed are at liberty to choose the valuation of property forming the I ubject-matter of the deed. Accordingly, the objection taken by the respondent authorities is not supported by law and is therefore declared to be illegal, without lawful authority and of no legal effect. Having pronounced so, the respondents are directed to act strictly in accordance with law in relation to the relief prayed by the petitioner for recording the transfer of title of the subject-matter property to her name. Disposed of.