R.B.MEHROTRA, J. - (1.) In these two writ petitions filed under Art. 226 of the Constitution of India, a common question of law and fact arises for decision as to whether the agreement executed between the petitioners and the U.P. State Road Transport Corporation can be termed as a lease or the said agreement can be treated only as a licence. Petitioners in both the cases are aggrieved by the orders of the Collectors of their respective district issuing recovery certificates for recovery of the balance of the stamp duty on the basis that the agreement executed between the petitioners and U.P. State Road Transport Corporation is a lease and the petitioners are liable to pay the stamp duty required to be paid for executing the lease deed. Petitioners challenged the recovery certificates mainly on the ground that the agreement executed between the petitioners and the U.P. State Road Transport Corporation is only a licence on which no stamp duty is required to be paid. Petitioners had executed the licence on a stamped paper of Rs. 5.00- which is the requirement for execution of licence under the Stamp Act.
(2.) Brief facts in respect of both the aforesaid writ petitions are being stated for appreciating the controversy involved in these cases. In Writ Petition No. 7348 of 1979, petitioner Udai Pratap Singh participated in an auction for running a refreshment stall inside U.P. State Road Transport Corporation, Varanasi Depot. Petitioner's bid stood highest at Rs. 1,10,000.00. Petitioner executed an agreement termed as licence on 28-11-1977 on a stamped paper of Rs. 5.00 for a period of three years. The said agreement was signed between the petitioner and the authorities of the U.P. State Road Transport Corporation, Varanasi (hereinafter referred to as the Corporation). The terms of the agreement as annexed in the writ petition are being reproduced hereinbelow :- "This agreement made on the 28/11/1977 between the U.P.S.R.T.C. through Assistant Regional Manager hereinafter called the Corporation on the one part and Sri Udai Pratap Singh, son of Sri Babu Nandan Singh, resident of village Gaur, Pargana Kaswar district Varanasi, hereinafter called the caterer which expression shall include his heirs, personal representative and permitted assignment of the other part. Whereas the Regional Manager, U.P. S.R.T.C. Varanasi Region has on behalf of Corporation accepted the bid of the caterer for opening a Refreshment Stall at U.P.S.R.T.C. Bus station, Varanasi from the 2-12-1977 on three yearly licence fee of Rupees 1,10,000/- (Rupees one lakh ten thousand only) on the terms and conditions hereinafter appearing. Now these presents witness as follows (sic) 1. That the contract shall commence from the 2-12-77 and shall remain in force for a period of three years subject to the condition that it shall be terminable by the corporation at its option in one months' notice should the service by the Caterer is (sic) found unsatisfactory, the decision in this behalf of the Regional Manager aforesaid shall be final and binding. 2. That the caterer shall provide good and wholesome vegetarian and non-vegetarian meals in Indian style in the shedule hereto. For members of the corporation on staff the said rates shall be subject to a discount of 121/2%, for articles for which the rates were not prescribed hereunder, the caterer shall have to get the same fixed by the said Regional Manager whose decision shall be final and binding on the caterer.
(3.) That the caterer shall funish the betel refreshment stall shop with necessary furniture, provide attractive show case and make arrangement to sell the goods, under hygenic condition at his own cost and subject to the approval of the Regional Manager, the caterer shall take all reasonable precaution that the servants and all other persons employed by him to do any work in the betel refreshment stall shop shall be courteous, civil, sober and honest and free from contagious diseases. Such servants or persons as are found in the opinion of the Regional Manager (which shall be final and binding), guilty of any misconduct or suffering from any contagious diseases shall be removed by the caterer.;