R.B.Misra, J. - (1.) THIS is a reference under Section 57 of the Stamp Act by the Board of Revenue, U. P., as the Chief Controlling Revenue Authority and arises in the following circumstances.
(2.) THERE is a bridge over river Krishna known as Rajpur Chajpur Bridge in the Rajpur Chajpur Tehsil Budhana District Muzaffarnagar within the local limits of Zila Parishad, Muzaffarnagar. The said parishad charges toll from the vehicles crossing the bridge on the said river. The Zila Parishad, Muzaffarnagar, leases out the right to collect tolls from the members of the public and the conveyances etc. passing over that bridge. An auction was conducted by the Zila Parishad, Muzaffarnagar, for leasing out the right to recover toll from the vehicles crossing the said bridge on 26th of June, 1963. Gajey Pal Singh and Tribhuwan Kumar jointly were the highest bidders and their bid was accepted by the Zila Parishad for Rs. 93,000.00 for three years at the rate of Rs. 31,000.00 per year to be paid to the Zila Parishad. On 30th of June, a formal deed of agreement was executed between the highest bidder and the Zila Parishad detailing out the rights to carry out the Theka and the made of payment. The deed of agreement has been filed as annexure to the reference. Clause 1 provided that the lease was for a period of three years and would end on 30th of September, 1976. Clause 2 stipulated that an advance sum of Rs. 7,750/was to be paid to the Zila Parishad by the highest bidders which was to be adjusted towards full and final payment by the highest bidders at the time of the payment of the last instalment, due to the Zila Parishad. The stamp clerk was of the opinion that the instrument was governed by the provisions of Article 35 (b) of Schedule 1 of the Indian Stamp Act and accordingly levied a duty chargeable at the rate of Rs. 45.00 per thousand (the total duty working out at Rs. 4,185.00). On the basis of the report of the Stamp clerk, the Stamp Officer determined the Stamp Duty payable on the said instrument at Rupees 4,185.00. The document was presented for adjudication before the Collector, Muzaffarnagar under Section 31 of the Stamp Act. The Collector did not think it necessary to refer the matter to the Chief Controlling Revenue Authority under Section 56 (2) of the Stamp Act and by his order dated 20th of January, 1965, held that the document in question was a lease chargeable with a duty of Rs. 4,185/under Article 35 (b) of the U. P. Stamp (Amendment) Act, 1962 on the premium of Rs. 93,000.00 representing the consideration for which the right to collect was let out as a result of the auction. The bidders, feeling aggrieved by the decision of the Collector, filed a revision before the Chief Controlling Revenue Authority under Section 56 (1) of the Stamp Act but the same was rejected on the ground that the Chief Controlling Revenue Authority had no jurisdiction to interfere under Section 56 (1) with the decision of the Collector under Section 31 of the Stamp Act. The bidders thereafter filed a writ petition challenging the order of the Board of Revenue which was later on numbered as writ petition No. 3585 of 1967, Gajey Pal Singh v. Board of Revenue. The writ petition was allowed and the order of the Board was quashed and the Chief Controlling Revenue Authority was directed to decide the Revision Application on merits under Section 57 (1) in accordance with law after hearing the parties. Consequent on the order of remand, the Board of Revenue took the view that the document in question is a lease in consideration of a premium of Rs. 93,000.00 in conformity with the opinion of the Collector. He was also of the view that the Chief Controlling Revenue Authority was not competent to revise or confirm the decision of the Collector under Section 31 of the Stamp Act. But as this Court had directed a reference to be made under Section 57 (1), the document has been referred to this Court for decision on the following questions :- 1. Whether the document is a lease for a period of 3 years within the meaning of Section 2 (16) (c) of the Stamp Act. 2. If so, whether it is a lease in consideration of a premium of Rs. 93,000.00 and is chargeable with a duty of Rupees 4,185.00 under Article 35 (b), Schedule 1-B of the U. P. Stamp Amendment Act, 1962. 3. If not, whether the document is a lease for 3 years in consideration of an yearly rent of Rs. 31,000,.00 chargeable with a duty of Rs. 1,395.00 under Art. 35 (a) (ii), Schedule 1-B of the U. P. Stamp Amendment Act, 1962. 4. In case the answer to the first point is in the negative, what is the nature of the document and what amount of duty is chargeable in respect thereof.
(3.) IN order to appreciate the point involved in the case, it would be relevant at this stage to refer to the relevant provisions of the Indian Stamp Act in so far as they are material for the decision of this case. Article 35 of Schedule 1-B of the U. P. Stamp (Amendment) Act. 1962 reads as below: "35. Lease, including an underlease or sub-lease and any agreement to let or sublet - (a)Where by sub-lease the rent is fixed and no premium is paid or delivered. (i)Where lease purports to be for term not exceeding one year; The stamp duty as a Bond (No. 15) for the whole amount payable or deliverable under sub-lease. (ii) Where the lease purports to be for a term exceeding one year but not exceeding five years : The stamp duty as a conveyance (No. 23) for a consideration equal to the amount or value of the average annual rent reserved. (iii)................ (iv)................ (v)................ (b) Where the lease is granted for a fine or premium, for money advanced and where no rent is reserved : The same duty as a conveyance (No. 23) for a consideration equal to the amount or value of such fine or premium, or advance as set forth in the lease. (c) Where the lease is granted for a fine or premium or for money advanced in addition to rent reserved. The same duty as a conveyance (No. 23) for a consideration equal to the amount or value of such fine or premium, or advance as set forth in the lease, in addition to the duty which would have been payable on such lease if no fine or premium or advance had been paid or delivered : Provided that, in any case when an agreement to lease is stamped with the ad valorem stamp required for lease, and a lease in pursuance of such agreement is subsequently executed the duty on such agreement is subsequently executed the duty on such lease shall not exceed two rupees and 25 paise." ;