( 1 ) THE above case Arises out of a reference made by the Chief Controlling revenue Authority under S. 54 of the Mysore Stamp Act, 1957, (hereinafter referred to as the Act ). The question for consideration in this case is whether a document addressed by Mjs Murugharajendra Co. for and on behalf of itself and Sri Shankara Textile Mills Ltd. Davangere (hereinafter referred to as the mortgagors) in favour of the Manager, State Bank of Mysore (hereinafter referred to as the mortgagee) is liable for stamp duty under Art. 6 of the Schedule of the Act.

( 2 ) THE facts leading to the above reference are these: the mortgagors had borrowed from the mortgagee a sum of Rs. Six lakhs under an equitable mortgage dt. 10-10-1960 In that connection they had deposited with the mortgagee, the title deeds relating to certain immovable properties. In January 1965, the mortgagor approached the mortgagee to advance an additional sum of Rs. Five lakhs under an equitable mortgage on the security of the title deeds already deposited by them under the first mortgage. The mortgagee having agreed to advance the sum the mortgagors got a resolution passed on 29-1-1965 of the Board of Director