( 1 ) THIS is a reference under S. 54 of the Karnataka Stamp Act, 1957, (Act No. 34 of 1957), made by the Chief Controlling Revenue Authority to this Court stating the case referred and seeking for the opinion thereon of this Court.

( 2 ) THE Managing Director of M/s. Bangalore Trading and Financing Corporation (Private) Limited, Bangalore, presented a lease deed dated 12-2-1981 executed by him on the same day in favour of M/s. Vanivilas Co--operative Sugar Factory Limited, Hiriyur, Chitradurga District, before the Sub-Registrar, Hiriyur, for registration. The Sub-Registrar impounded the document and in exercise of powers vested with him under S. 33 of the Karnataka Stamp Act, 1957, (hereinafter referred to as 'the Act'), issued notice to the presentant directing him to pay stamp duty of Rs. 11,200/- and, on hearing, levied stamp duty and penalty of Rs. 5/- under the provisions of S. 39 of the Act, by his order dated 6-3-1981. Aggrieved by the said order of the Sub-Registrar and Deputy Commissioner of Stamps, Hiriyur, the party preferred an appeal to the Chief Controlling Revenue Authority on 10-7-1981. The Chief Controlling Revenue Authority took the case on file and