The Board of Revenue acts as a quasi-judicial body under S. 56(2) of the Indian Stamp Act, 1899 and the respondents were entitled to a hearing.

Judgment

WANCHOO, J. : This is an appeal on the certificate granted by the Allahabad High Court. The brief facts necessary for present purposes are these. Certain decretal moneys were deposited in the then Chief Court of Oudh at Lucknow. The respondents applied to the Chief Court for permission to withdraw the moneys on furnishing security and were permitted to do so. Thereupon a registered security bond was executed and registered in Simla in 1949 by which a house there was given in security for withdrawal of the money. Before, however the money could be withdrawn, the Inspector of Stamps reported on March 15, 1950, that the so-called security bond was in reality a mortgage deed without possession and was insufficiently stamped. He therefore reported that it should be impounded and the deficit stamp duty of Rs. 482/11/- and a penalty amounting to Rs. 4,826/14/- should be levied with respect to that document. Thereupon on April 5, 1950, the Deputy Commissioner, Kheri, acting as Collector passed the following order :

"In case the parties have any objection, they put it in writing which will be referred to the Board of Revenue."

2. It seems that on July 5,1950, the respondents objected that the document was not a mortgage-deed and that no duty or penalty was payable, and further that as the document had not been till then accepted by the Court, it was only a tentative document. On August 3, 1950, the judicial officer before whom the security bond was filed impounded it under S. 33 of the Indian Stamp Act, No. II of 1899 (hereinafter referred to as the Act), and apparently forwarded it to the Deputy Commissioner, Kheri, under S. 38 of the Act. It seems thereafter that in November, 1950, the respondents filed further objections before the Stamp Officer (Treasury Officer) Kheri, from whom the Deputy Commissioner who acts as a Collector for the purposes of the Act had called for a report. In December, 1950, the Treasury Officer made a report to the effect that the view of the Inspector of Stamps was correct and duty and penalty as reported by the latter were due. The respondents case was that the Treasury Officer did not give them any hearing before making the said report. It seems that on this report the Deputy Commissioner made the order "Realise". He also is said to have given no hearing to the respondents. In January, 1951, the respondents filed a revision against the order of the Deputy Commissioner before the Board of Revenue. It appears however that in March, 1951, the Deputy Commissioner referred the matter to the Board of Revenue under S. 56(2) of the Act. In July 1951 the Board of Revenue disposed of the matter and upheld the order of the Collector. But the respondents complaint was that the Board of Revenue also did not give them a hearing. Consequently they filed a writ petition in the High Court in November, 1951. That petition was dismissed by the learned Single Judge on the ground that neither the Act nor the Rules made thereunder provided that any hearing should be given to the person who was liable to pay the deficit stamp duty and the penalty. He further held that in any case the Collector had given an opportunity to the respondents to urge their objections in writing, and that the Board of Revenue had also considered the grounds taken by the respondents in their revision-petition and there was no provision in the law requiring the Board of Revenue to give a personal hearing or a hearing through counsel in a case of this kind.

3. The respondents then went in appeal. The appeal Court seems to have treated the matter before the Board as if it were a reference under S. 56 (2) of the Act. As the learned Single Judge has pointed out, though the order of the Collector of December, 1950, would usually be final, it appeared that he had chosen to make a reference to the Board of Revenue under S. 56 (2). We must therefore proceed on the assumption that this case has been disposed of by the Board under S. 56(2) and not by the Co