Judgement

Appeal (No. 47 of 1923) from a decree of the High Court (August 9, 1920) affirming a decree of the Subordinate Judge of Purulia.

The respondent granted to the appellants a lease dated December 14, 1906, for 999 years of land for use as a coal mine in consideration of a sum of Rs. 1920 as salami, or premium, and payment of 5 annas per ton of coal raised as royalty with a minimum of Rs. 960 per annum. The instrument was stamped with stamps to the value of Rs. 40, of which Rs. 20 was the amount payable under the Indian Stamp Act, 1899, in respect of the premium.

Sect. 26 of the above Act provides that " where the amount or value of the subject matter of any instrument chargeable with ad valorem duty cannot be .... ascertained at the

08 Law. Rep. 51 Ind. App. 332 ( 1923- 1924) Lachmi Narayan Agarwalla V. Braja Mohan Singh

date of its execution, nothing shall be claimable under such instrument more than the highest amount or value for which, if stated in an instrument of the same description, the stamp actually used would .... have been sufficient." The balance l of Rs. 20 would have been sufficient under the Act for an instrument providing for royalties up to Rs. 2000.

Sect.