The central legal point established in the judgment is the distinction between conveyance and dissolution deeds in the context of partnership dissolution for stamp duty purposes, emphasizing that the distribution of partnership assets does not constitute a transfer and should be treated as a dissolution deed.

JAGANNATHA SHETTY, J.

( 1 ) THIS is a Reference made by the chief Controlling Revenue Authority under S. 54 of the Karnataka Stamp act, 1957. The matter arises in this way: in March 1975, a coffee plantation at Mudigere Taluk was purchased in the joint names of Mrs. K. Azra jabeen and her brother K. Anwar Ali. In January 1976 they entered into a partnership firm styled as 'kodagibyle estate'. The entire property purchased by them was put into the stock of the partnership firm. In July 1978 the firm was dissolved and a document dated 24th July, 1978 was executed distributing the assets of the firm in-specie as between the two partners. The estate along with building thereon was allotted to the share of the sister while a cash of Rs. 4,80,786 was pa,id to her brother. The Stamp duty on the deed was paid treating it as a deed of partition with an additional stamp duty payable on a deed of dissolution of partnership. When the deed was presented for registration, it was impounded by the Sub-Registrar of mudigere and later referred to the deputy Commissioner under S. 33 of the Stamp Act. On 12th December, 1978, the Deputy Commissioner made an order holding that the document was a conveyance and not a deed of partition. He directed recovery of deficit stamp duty of Rs. 42,649-50 P. with a penalty equal to tep times thereon. Being aggrieved by the said order, the petitioner appealed to the chief Controlling Revenue Authority under S. 53 (1) of the Act. The said authority, following the decision of this Court in M. A. Venkatachalapathi v. State of Mysore (1) has confirmed the order of the Deputy Commissioner. But at the request of the petitioner, the case has been referred to this court for opinion on the disputed question.

( 2 ) WE have now to determine the true nature of the document. Mr. Nanjundaswamy, counsel for the petitioner persuasively urged tha,t the document is no more than, a deed of dissolution of partnership, although it was styled as an instrument of partition. He also urged that the decision of this Court in Venkatachalapathi's 1966 (1) Mys. L. J. 21 = AIR 1966 Mys. 323. case is no longer good law in view of the subsequent decisions of the Supreme Court. The document in question states:"1. The entire properties shown in the Schedule 'a' hereunder is allotted to the First Party absolutely and for ever and a sum of Rs. 4,80,786 is allotted to the Second party. "it further states:"2. The Second Party gives up the possession of the 'a' Schedule properties and the Second Party has received the above said sum of rs. 4,80,786 from the First Party through her P. A. Holder Mr. K. Hafizur Rahman, out of the assets of the partnership firm, under a pay order No. 254/78 dated 24-7-78 issued by Vijaya Bank Ltd. , Chickmagalur branch paid before the Sub-Registrar and the said sum is hereby acknowledged by the Second Party in full satisfaction. "then it proceeds in these terms:"7. The Second Party from this day onwards shall not have any right of his own to enter into the 'a' Schedule Properties. ""10. The Second Party shall have no objections whatsoever for the receiving by the First Party of all the documents lodged with the vijaya Bank Ltd. , Aldur, in respect of the 'a' Schedule Properties by the parties hereto and the Second party has handed over to the First party all the documents in relation to the 'a' Schedule properties that have been in his custody upto this date. "the deed then concludes: 15. The Partnership firm under the two deeds, dated 27-1-76 and 1-9-76, between the two parties relating to the 'a' Schedule Properties as stated above, has been dissolved. "17. The value of the 'a' Schedule proper des is Rs. 34,856-50 and the value of the amount received under this document by the Second Party is Rs. 4,80,786 as per 'b' Schedule. The stamp duty payable on, this document in Rs. 820-50 (on 'a' schedule Properties, which is lesser ). As this document also purports to be a dissolution of the Partnership, an additional stamp d

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