BENGAL PAPER MILLS CO LTD Vs. COLLECTOR OF CALCUTTA
LAWS(CAL)-1976-8-12
HIGH COURT OF CALCUTTA
Decided on August 11,1976

BENGAL PAPER MILLS CO LTD Appellant
VERSUS
COLLECTOR OF CALCUTTA Respondents


Referred Judgements :-

GISBORNE AND CO. V. SUBAL BOWRI [REFERRED TO]
HIRALAL SIRCAR V. QUEEN EMPRESS [REFERRED TO]
HITWARDHAK COTTON MILLA LTD. V. SORABJI [REFERRED TO]
JIWANLAL ACHARIYA VS. RAMESHWARLAL AGARWALLA [REFERRED TO]
HAMDARD DAWAKHANA WAKF DELHI VS. STATE OF DELHI [REFERRED TO]
MAHABIR PRASAD VS. PEER BUX [REFERRED TO]
PATEL STONE TRADING CO VS. RAMSING [REFERRED TO]



Cited Judgements :-

SHANTILAL VS. VIJAY KUMAR [LAWS(MPH)-2009-5-43] [REFERRED TO]
BRIJ LAL VS. AMAR NATH KAUSHAL [LAWS(HPH)-2004-5-10] [REFERRED TO]
SUKHRAM DEWANGAM VS. RISHI AGRAWAL [LAWS(CHH)-2017-1-90] [REFERRED TO]
ALKA PANT VS. ABHISHEK JAISWAL [LAWS(CHH)-2017-4-85] [REFERRED TO]


JUDGEMENT

- (1.)This matter has come up before us in view of the provisions of sub-section (2) of Section 57 in Chapter VI of the Indian Stamp Act, 1899 which provides that when the Chief Controlling Revenue Authority refers a case to the High Court, it shall be heard by not less than three Judges.
(2.)On June 6, 1973 there was an agreement between the Bengal Paper Mills Co. Ltd., and the West Bengal Industrial Development Corporation Ltd. The agreement related to a loan of Rs.15,00,000/-which the Corporation granted to the Bengal Paper Mills Co. Ltd. The document was stamped with Rs.1.50 p. plus a duty of 10p. as additional duty, it being agreed between the Corporation and the Company that if on adjudication any further duty was payable the same would be paid by the Company. The Corporation applied to the Collector of Calcutta for adjudication of the stamp duty payable on the document. The Collector examined the matter. The Collector found that the Company had applied to the Corporation for a loan. The Corporation has sanctioned the amount of Rs.97,28,444.85p. to the borrower (i.e. the Company) as an interest free loan under the terms and conditions laid down in the deed. The Corporation decided that the loan would be paid by installments. The Corporation as the first installment of the loan had paid Rs.15,00,000/- on the execution of the document. The borrower, i.e., the Company acknowledged the receipt of the loan and executed a separate receipt therefor. By the document the borrower, i.e. the Company undertook a repay to the Corporation the loan of Rs.15,00,000/- by three equal installments of Rs.5,00,000/-. The first of such installments would be paid n May 31, 1991; the second installment on May 31, 1992 and the third installment on May 31, 1993 without any interest. The borrower also agreed to certain conditions, if any default in repayment of the installments had occurred.
(3.)The Collector was of the view that the document was a loan bond within the meaning of Section 2, sub-section 5(a), of the Indian Stamp Act, 1899. He imposed a duty of Rs.18,000.10p. assessed under Article 15 of Schedule 1A to the Act. He directed that the said sum of stamp duty was to be deposited with the Collector by June 29, 1973.
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