MANJULABEN AMRUTLAL Vs. CHIEF CONTROLLING REVENUE AUTHORITY

JUDGEMENT

(1.) The Chief Controlling Revenue Authority, Gujarat State, Ahmedabad, has referred the following questions for our decision as per the provisions of Sec. 54(1A) of the Bombay Stamp Act, 1958, hereinafter referred to as the "Stamp Act" : ''(1) Whether the impugned instrument is a release without consideration falling under clause (b) of Art. 52 or a gift falling under Art. 34 of Schedule I to the said Act ? (1) . (2) If the nature of impugned instrument is decided as Gift deed, whether the Collector is empowered to make inquiry regarding the value of the property which is the subject-matter of the said Gift deed ?" The aforesaid questions arise in the background of the fact that Gunvantrai Prabhudas Khadayata and Pradipkumar Prabhudas Khadayata executed a deed dated 17/09/1977 which is termed as a release deed without taking any consideration on a Stamp Paper of Rs. 40.00relinquishing their rights in favour of their parents, viz., Shri Prabhudas Bhagwandas Khadayata and Smt. Manjulaben Amrutlal. The said instrument was presented for registration on 17/09/1977. The Sub-Registrar, Porbandar, impounded the said document under Sec. 33 of the Stamp Act and referred it to the Collector, Junagadh, on 4/10/1977 as provided under sub-sec. (2) of Sec. 37. The Collector, Junagadh, after scrutinising the facts of the instrument arrived at the conclusion that the true nature of the instrument was gift deed and as the parties had not set forth any amount or value of the property in the instrument, he called for the opinion of the Superintendent of City Survey in regard to its value. The Collector thereafter arrived at the conclusion that the approximate value of the property was Rs. 22,000.00and on the basis of the said amount assessed the proper stamp duty and issued a show cause notice to the applicants on 1/01/1979. After hearing the Advocate of the applicants, the Collector determined that the deed in question was a gift deed and ordered to recover the deficit stamp duty of Rs. 2,450.00 with penalty of Rs. 500.00, i. e., in all Rs. 2,950.00 vide his order dated 6/06/1979.

(2.) Against that order, the applicants preferred a revision application to the Chief Controlling Revenue Authority, Gujarat State, under Sec. 53 of the Stamp Act. After hearing the Advocate of the applicants, the Chief Controlling Revenue Authority confirmed the order passed by the Collector by his order dated 19/09/1979. Hence this Reference at the instance of the applicants.

(3.) For determining whether the deed executed on 17/09/1977 is a release deed or a gift deed, the following undisputed facts are required to be taken into consideration : (1) By a registered sale-deed dated 9/02/1968 the house in dispute was purchased by Manjulaben Amrutlal Khadayata as a guardian of Gunvantrai Prabhudas (aged about 12) and Pradipkumar Prabhudas (aged about 10) for a consideration of Rs. 7,000.00 from its owner. (2) In the deed dated 17-9-1977 executed by Gunvantrai Prabhudas and Pradipkumar Prabhudas after attaining majority it was stated that - (a) the house was purchased by Smt. Manjulaben Amrutlal as a guardian of Gunvantrai and Pradipkumar; (b) in that house property they were residing jointly; (c) Gunvantrai and Pradipkumar were major; and (d) both were maintained by the parents. By executing the said deed the executants have released theirright in favour of their mother Manjulaben and father Prabhudas. They have released their right without any consideration.