AMITAVA LALA, J. - (1.) BY way of this petition under Article 226, the petitioners seek the direction to the respondents to realize the stamp duty on their security deposit in terms of the Article 57 of the Schedule 1-B of the Indian Stamp Act.
(2.) BRIEFLY stated, the petitioner no.1 is a proprietorship firm and the petitioner no.2 is its proprietor. The firm carry on business of civil construction in various departments of the State Government, the Local Bodies including the KDA, Kanpur. The petitioners tender/quotation for construction of road, drainage etc was accepted by the respondent no.2. Consequent upon the Executive Engineer of the Kanpur Development Authority on 25.7.2005 issued a communication wherein the petitioners were informed that their bid for a sum of Rs. 4,10,282. 94p has been accepted and they were asked to submit the stamp paper within ten days for execution of necessary documents/agreements. The petitioners case is that they were required to furnish security either in the shape of National Security Certificate or Fixed Deposit or in the shape of Bank Guarantee and on the aforesaid security amount of 10% the respondents were demanding the stamp duty @ 125/- per thousand. It is noteworthy the security deposit is refundable after completion of the work and the object of the said security is only to ensure that the work may be completed in terms of the contract/agreement. We have heard learned counsel for the petitioner and the learned Standing counsel. The respondents have preferred not to file counter affidavit and as such by the consent of the parties, we proceed to dispose of the writ petition on the basis of the pleadings of the writ petition.
(3.) THE learned counsel for the petitioners submitted that the stamp duty is payable in terms of Article 57 Schedule 1-B of the Indian Stamp Act and not in terms of the Article 40 (A) of the Schedule 1-B of the Indian Stamp Act as demanded by the respondents. Article 57 Schedule 1-B so far as material for the purposes of present matter is set out below :- Description of instrument Proper stamp duty 57-Security bond or mortgage deed, executed by way of security for the due execution of an office, or to account for money or other property received by virtue thereof, or executed by a surety to secure the due performance of a contract or the due discharge a liability - (a) When the amount secured does not exceed Rs.100. Ten rupees (b)in any other case One hundred rupees. ;