JudgmentChagla, C.J.

1. This is a reference made to us under Section 57, Stamp Act, by the Chief Con-trolling Revenue Authority, and the facts giving rise to this reference may be briefly stated. The Maharashtra Sugar Mills borrowed a certain sum of money from the Central Bank of India, Ltd., on the security of various goods and movables belonging to the company, and a document was executed reducing to writing the terms of the transaction between the parties. That document was executed on 22-8-1945. The company sent this document to the Registrar of Companies. The Registrar of Companies took the view that the document was inadequately stamped and therefore forwarded it to the Assistant Superintendent of Stamps. The Assistant Superintendent of Stamps called upon the Sugar Company to pay the proper duty along with penalty. The Sugar Company resisted the demanded filed a suit, being Suit No. 1108 of 1945, in this Court for a rectification of the document. The contention of a Sugar Company was that although in form the document was a mortgage with possession, the intention of the parties was that it should be a deed of hypothecation and the document was drawn up in the form in which it

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