Grover, J. - (1.) This is an appeal by special leave from a judgment of the Kerala High Court in which a question of substaintial importance arises relating to the extent of the property that attracts Estates Duty on the death of a Sthanee or Sthanomdar in a Hindu family governed by the Marumakkattayam Law.
(2.) It may be mentioned that Civil Appeal No. 1137/69 was brought to this Court by certificate against the same judgment but the certificate is defective for want of reasons and has therefore to be revoked.
(3.) One K. K. Thampan who was the third stanomdar of Kuthiravattithu Family died on May 17, 1960. The Sthanam owned several properties such as forest lands, agricultural lands, buildings etc. The deceased also owned several properties in his personal capacity. After his death a suit for the partition of the Sthanam was filed in a civil court by the various members of the Tarwad. The appellant before us was appointed a Receiver of the properties covered by the third Sthanam of which the Sthanamdar was the deceased K. K. Thampan. The Receiver was, in these circumstances, treated as an accountable person in respect of the Sthanam properties. Pursuant to a notice issued under Section 55 of the Estate Duty Act 1958, hereinafter called the "Act", by the Assistant Controller of Estate Duty (respondent herein) the appellant filed the necessary accounts. But he raised a contention in the assessment proceeding that according to Section 7 (3) of the Hindu Succession Act 1956, hereinafter called the "Succession Act'", the deceased Thampan was entitled only to 1/114th share in the properties in the Sthanam and therefore only that share could be taken into account indetermining the principal value of the estate liable to duty. The respondent, however, held that the entire estate passed on the death of the deceased and was liable to duty. The appellant filed a petition under Article 226 of the Constitution challenging the assessment order. A learned single Judge of the High Court allowed the petition and quashe the assessment order. The respondent filed an appeal before a division bench of the High court which was heard by a Full Bench together with other appeals involving a similar point. Before the High court it was not disputed by the appellant that if the Act stood alone the entire properties of the Sthanam were liable to estate duty under the Act. The sole contention was that Section 7 (3) of the Succession Act made a difference inasmuch as by virtue of the partition postulated under that provision immediately before the death of the Sthanamdar the property that passed or should be deemed to pass on the death of the Sthanamdar was only his per capita share of the Sthanam property and not the whole property of the Sthanam. The Full Bench negatived the contention of the appellant and held that on the death of the Sthanamdar the whole of the Sthanam property passed and was deemed to pass and the Estate duty was payable on the whole of the property.;