UMESH KUMAR GUPTA Vs. STATE OF U P

JUDGEMENT

(1.) The petitioner had taken a loan from the Punjab National Bank. The case of the petitioners is that the loan secured by a mortgage by deposit of title deeds on 18-11-2004 and to evidence this transaction the petitioner executed a document titled as 'Memorandum of Mortgage by way of deposit of title deed' on 12-1-2005. The question in this case is whether this instrument dated 12-1-2005 is a mortgage deed covered under Art. 40(b) of Schedule 1B of the Indian Stamp Act or is it an agreement relating to the deposit of title deeds covered under Art. 6 of Sch. 1-B. The revenue authorities treating the instrument as a mortgage deed have found that there is a deficiency of Rs. 4,90,000/- in stamp duty and have also imposed penalty of like amount and interest of Rs. 14,700/-.

(2.) Section 2(17) of the Indian Stamp Act defines a mortgage-deed. It is quoted here under :

(3.) Article 6 of Schedule 1B is quoted hereunder :