JAIPUR METALS AND ELECTRICALS LIMITED Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) TO appreciate the objections raised by the learned Government Advocate as regards the maintainability of this revision it is necessary to set out the facts of the case in brief. The Jaipur Metals and Elecrical Limited is a public limited company having its registered office near the Railway Station, Jaipur, hereinafter referred to as the applicants, negotiated with the Industrial Financial Corporation of India for the advance of a loan of Rs. 7-1/2 lacs to them and the Corporation sent to the applicant two drafts of documents to be executed and registered by the applicant in favour of the Corporation. One of these documents is an indenture between the applicant, its managing agents and the Corporation regarding the taking of the loan and containing therein the postponement of the first charge of the debenture on the fixed assets of the company in favour of the first charge of the Corporation. The other is an indenture between the applicant and the Trustees of the Debenture Trust regarding the postponement of their charge in favour of the Corporation. The applicant, in order to have an adjudication from the Collector, regarding the stamp duty payable on the aforesaid two documents submitted an application to the Collector, under sec. 31 of the Indian Stamp Act. The Collector wrote down the words 'r. A. ' on the margin of the application. The office put up a note on 28. 4. 56 before the Collector who passed an order on 26. 5. 1956. As regards the merits the decision of the Collector runs as below : - "a perusal of the deeds executed in favour of the Industrial Finance Corporation of India shows that it contains two distinct matters, one being a mortgage without possession in favour of the Corporation for a sum of Rs. 7-1/2 lacs and the other the creation of second charge by the first mortgagees for the sum of Rs. 10 lacs advanced by them to the Company. It is obvious that there are two distinct matters and, therefore, the consideration for this deed for the purposes of stamp duty according to sec. 5 of the Indian Stamp Act amounts to Rs. 17-1/2 lacs and not merely Rs. 7-1/2 lacs and is chargeable as per Art. 40 (b) of the Schedule I of the Rajasthan Stamp Law Adaptation Act. The proper stamp duty on this deed, therefore, comes to Rs. 17,500/- (Rupees seventeen thousand and five hundred only ). The second deed is a supplement to the above deed and can therefore, be executed on a stamp paper of Re. 1/-only as per sec 4 of the Stamp Act. The party may be informed accordingly and asked to present the original copy of the deeds for the necessary adjudication certificate. " It appears that subsequently on 21st June, 1956 the applicants put up an application before the Collector alleging therein that the S. D, O. who had heard the applicant's counsel was of the opinion that the stamp duty required on the documents was Rs. 7500/- only, 1% of Rs. 7-1/2 lacs but that the decision of the Collector was entirely different. It was also alleged in the application that the principles of natural justice were not observed as the decision was passed against the applicants without an opportunity being afforded to them to put up their case before him. The learned Collector observed on the application as below : - "i have passed an order after having discussed it with the S. D. M. The only remedy for the petitioner is to get the order reviewed by a superior revenue authority. " This revision was there-after filed in the Board by the applicant on 26. 6. 1956.

(2.) THE learned counsel appearing for the applicant has laid great emphasis on the fact that the Collector passed the order without hearing him or without applying his mind to the facts of the case and the relevant provisions of law governing the same.