C.S.P.Singh, J. - (1.) THIS is a re ference under Section 57 of the Indian Stamp Act made at the instance of Somaiya Organics (India) Ltd.
(2.) THE Godavari Sugar Mills Ltd, (which for convenience, will be referred to as 'the Godavari Sugar Mills') enter ed into a technical collaboration agree ment with Messrs. Melle Besons. and it is said that in this connection pursuant to the resolution of its Board of Directors passed on October 23. 1964, the Godavari Sugar Mills obtained a deferred payment guarantee upto the limit of Rs. 65.00.000/-from the Punjab National Bank Ltd. in favour of Messrs. Speichim Paris, on an equitable mortgage by deposit of title deeds of its property. The Godavari Sugar Mills was the owner of property consisting of land and buildings which included a factory and residential accommodation for its employees. On March 2. 1962. the Goda vari Sugar Mills resolved to sell the land, buildings and machinery to the Somaiya Organics (India) Ltd. (referred to hereinafter as 'Somaiya Organics') for a consideration of Rs. 36,64,678/- and on May 20, 1968. a sale deed was executed pursuant to the resolution. The sale-deed recited that the land and buildings were conveyed for a consideration of Rs. 7,76,000/- while the balance of Rupees 28,88,678/- represented the price of machinery, vehicles, stores and other goods, which were treated as movable items and the transfer of which had been completed by manual delivery. It was also recited that the entire property sold was free from charges or encum brances. Treating the document to be a conveyance for a consideration of Rupees 7.76,00ft/- only, stamp duty of Rs. 35.000/-was paid under Article 23. Schedule 1-B of the U. P. Stamps (Amendment) Act. 1962. Subsequently, it is said that the parties discovered that the recital that the property was free from charges and encumbrances was incorrect and it was recalled that an equitable mortgage with deposit of title deeds, had been created in favour of the Punjab National Bank Ltd. On September 17, 1963, the Board of Directors 9f the Godavari Sugar Mills held a meeting and pursuant to the resolution passed therein, a deed of declaration was executed by two directors on behalf of the Godavari Sugar Mills on October 28. 1968 recit ing that the property mentioned in the sale deed of May 20 1968 was subject to an equitable mortgage by deposit of title deeds in favour of the Punjab National Bank Ltd. Similarly, pursuant to a meeting held on September 17. 1968 of its Board of Directors Somiya Orga nics executed a similar deed of declara tion on October 28, 1968. Stamp duty of Rs. 43.50 (sic) (3.50 ) was paid on each of the two deeds of declaration.
(3.) THREE documents, namely, the sale deed of May 20. 1968. and the two deeds of declaration dated October 20, 1968. were presented before the Sub-Re gistrar, Hate, district Deoria. for regis tration. He has impounded them under Section 33 of the Stamp Act and sent them to the Collector, Deoria under Sec tion 38 (2) of the Act for necessary action. He reported that on the basis of Section 4 and Section 24 of the aforesaid Act, the consideration of the sale-deed read with the two declarations should be deemed to be Rs. 7,76,000/- plus Rs. 120,00,000 plus Rs. 65,00,000/- amounting in all Rs. 1,92,76,000/- and that ad valo rem duty should be calculated according ly. The deeds of declaration should be treated as supplementary deeds on each of which a duty of Rs. 4,50 and not Rs. 3.50 was payable. Accordingly, he reported a total deficiency of Rupees 3,32,422/-. The Collector, Deoria was unable to arrive at any definite opinion in the matter, and consequently referred the case to the Chief Controlling Revenue Authority under Section 56 (21 of the Stamp Act. The Chief Controlling Re venue Authority considered the matter and has now. with its opinion, referred the case to this Court. It has framed the following questions:- (1) Whether in view of the above opinion of the Board, the principal sale-deed dated 20-5-1968 is a conveyance not only of the lands and buildings but also of the machineries fixed in the earth in consideration of Rs. 36,64,678/-. in the light of Section 24 of the Stamp Act and is chargeable with a duty of Rs 9,97,425/-under Article 23 Schedule I-B of the U. P. Stamp (Amendment) Act. 1962. as against Rs. 35.000/- paid? or (2) Whether the sale-deed aforesaid is a conveyance only of lands and build ings in consideration of Rs. 7,76,000/-plus Rs. 1,85,00,000/- total Rs. 1,92,76,000/-in the light of Section 24 of the Stamp Act and is chargeable with a duty of Rs. 8,67,420/- under Article 23 aforesaid as against Rs. 35.000/- paid? (3) Whether the sale-deed aforesaid does not fall within the ambit of Sec-tio,n 24 of the Stamp Act and is a con veyance of the lands and buildings along with machineries fixed in the earth in consideration of Rs. 36,64,678/- and is chargeable with a duty of Rs. 1,74,925/-under Article 23 aforesaid as against Rs, 35.000/- paid Or (4) Whether the sale-deed aforesaid does not fall within the ambit of Sec tion 24 of the Stamp Act and is con veyance of lands and buildings only in consideration of Rs. 7,76,000/- only and is sufficiently stamped with a duty of Rs. 35.000/- under Article 23 aforesaid. Or (5) If the sale-deed aforesaid does not fall under any of the alternatives mentioned above, what should be deem ed to be its consideration for payment of stamp duty under Article 23 aforesaid read with Section 4 and Section 24 of the Stamp Act? (6) Whether the other two documents are supplementary deeds within the meaning of Section 4 of the Stamp Act and were liable as such to a duty of Rs. 4.50 as against Rs. 3.50 paid in each case? ;