Back
Andhra Pradesh High Court
Judges : BASI REDDI, NARASIMHAM, P.CHANDRA REDDY
Chief Controlling Stamp Authority, Hyderabad - Appellant
Versus
State - Respondent
Decided On : 09-08-61
STAMP DUTY - LEASE DEED - GUARANTEE CLAUSE - WHETHER INSTRUMENT COMPRISES OR RELATES TO SEVERAL DISTINCT MATTERS - SECTION 5 OF HYDERABAD STAMP ACT, 1331-F.
Fact of the Case:
The issue before the court was whether a lease deed containing a clause whereby a third party undertook to guarantee the due payment of the stipulated rent and the performance of the other conditions of the lease, required to be stamped both as a lease-deed and as a security bond under section 5 of the Hyderabad Stamp Act, 1331-F.
Finding of the Court:
The court held that the lease deed and the guarantee clause did not comprise or relate to distinct matters and formed parts of the same transaction. Therefore, section 5 of the Hyderabad Stamp Act was not attracted, and the instruments were not chargeable with stamp duty both as lease-deeds and as security bonds.
Issues: 1. Whether the lease deed and the guarantee clause comprised or related to several distinct matters. 2. Whether the matters in the instrument formed parts of the same transaction.
Ratio Decidendi: 1. The court relied on the decision in Price v. Thomas, 2 B. and Ad. 218, where it was held that a covenant by a surety to pay rent was part of the consideration for granting the lease and formed an integral part of it. 2. The court also referred to the decision in Secretary to the Commissioner of Salt, Abkari and Separate Revenue, Madras (Referring Officer, (1920) 38 MLJ. 506 : I. L. R. 43 Mad. 365.), where it was held that a sale-deed, in which the vendor mortgaged lands not included in the sale as security for the due performance of his covenants, need not be stamped both as a sale and as a mortgage under section 5 of the Indian Stamp Act, 1899. 3. The court further relied on the decision in Dowlatram Harji v. Vitho Radhoji, (1880) I. L. R. 5 Bom. 188 (F. B.), where it was held that a bond containing the contract of the principal and the contract of the surety was one instrument and not two instruments, and did not require to be separately stamped.
Final Decision: The court answered the reference in the negative, holding that the instruments in question were not chargeable with stamp duty both as lease-deeds and as security bonds.
( 1 ) THIS is a reference by the Chief Controlling Stamp Authority to the High Court under section 55 of the Hyderabad Stamp Act (IV of 1331-F.) for a decision on the question of the proper stamp duty chargeable on certain documents which are termed " rental-deeds " , each also containing a clause whereby a third party undertook to guarantee the due payment of the stipulated rent and the performance of the other conditions of the lease. The point for determination in this reference is whether each of the leases in question is to be treated as relating to two distinct matters not forming parts of the same transactions, within the terms of section 5 of the Hyderabad Stamp Act, so as to require to be stamped both as a lease-deed and as a security bond.
( 2 ) THE leases follow the same pattern and for the sake of convenience, the terms of a specimen deed may be set out :"i. . . . . . . . . . . . . . . . . . . . . . . . son of. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . aged. . . . . . . . . . . . . . . . . . years, occupation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . resident of Hyderabad-Deccan, with a sound mind and judgment, without any duress or coercion and of my own free will and accord, do hereby execute this rental-deed in favour of the municipal Corporation represented by the Vice-Chairman, Municipal Corporation, Hyderabad, to Che effect that I have obtained a mulgi/stall, bearing No. . . . . . . . . . . . . . . . . . . on. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195. . . . . . . . . for the purpose of establishing a shop for a period of (11) eleven months on a stipulated monthly rent of O. S. Rs. . . . . . . . . . . . . . . . . . . . . . . . . on the following conditions :- (1) That I have paid a sum of Rs. . . . . . . . . . . . . . . . . . . . . . . . . as advance of rent for one month for the aforesaid mulgi/stall and that I have also deposited as dharawat a sum of Rs. . . . . . . . . . . . . . . . . . . . . . . . . equivalent to three months rent and obtained a receipt therefor, and I do hereby agree to pay without making any excuses or objections the monthly rent in advance by the 5th day of each month and obtained a receipt therefor. (2) That in case of delay in the payment of the monthly rent or of any arrears remaining outstanding against me, the Municipal Corporation, Hyderabad, shall be at liberty to deduct the same from the amount of dharawat deposited by me or to recover the same from my person or property under the rules or to eject me from the said mulgi/stall. (3) On receiving the orders from the Municipal Corporation, Hyderabad, for the vacation of the said mulgi/stall, I shall vacate the said mulgi/stall without making any excuses or objections within 15 days from the date of the receipt of such order or within such time as may be fixed by the municipal Corporation, Hyderabad. (4) In case I myself should desire to vacate, I shall notify the Municipal Corporation, Hyderabad, one month in advance and before such vacation I shall discharge all the dues, etc. , that may be outstanding against me for the duration of my tenancy. If I vacate the mulgi/stall within the month, i shall be liable to pay one month s rent and the Municipal Corporation, Hyderabad, shall be at liberty either to deduct the same from the amount of dharawat deposited by me or to recover the same according to law from my person or property. Moreover, until and unless permission is granted to me for vacating the mulgi/stall and all the outstanding arrears are paid by me, I shall not be entitled either to take away my samans or to vacate the mulgi/stall and till full satisfaction is made, the vacation shall not be deemed to be complete. (5) That I shall not sublet the said mulgi/stall to anyone or deliver the possession thereof to a third party without the permission of the Municipal Corporation, Hyderabad. (6) That in opening and closing my shop, I shall duly obser
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
