JUDGMENT - (1) This is a reference under Section 54 (1) of the Bombay Stamp Act made by the Chief Controlling Revenue Authority. The reference arises under the following circumstances. Four persons namely Govind Parmeshwar Nair, his wife Kartika P. Nair and his two daughters Mrs. Prakashini Govind Kutty Menon and Miss Hayashree Parameshwar Nair purchased a building known as "Nair Mahal" at Tulsipipe Road, Mahim, Bombay, on 30th March, 1960, for a sum of Rs, 2,50,000. On the next dau 31st March 1960 they declared a trust of the said porperty by a document intituled "Declaration of Trust" and executed by the said four settlors. The proper stamp duty payable upon this document is that subject-matter of this reference.

(2) The preamble recites that the settlors had purchased the propoerty with the express desire of declaring a trust thereof subject to the powers and provisions mentioned in the document. It also recites that the settlors already "stand seized , possessed of the said hereditaments and premises hereunder described" Then follow the procisions of the alleged trust which was to be called "G.P. Nair Family Trust" Clause 2 gave authority to the trustees to recover the rens and profits of the property. Out of it Rs. 6,000 were to be paid annually to the two settlors Govind Nair and his wife Kartiaka Nair and a sum of Rs. 3,000 each per year to the two daughters. The trustees were also directed to pay Rs. 100 per month to "each of the two sons and/or daughters of Mrs. Prakashini Govindan Kutti Menon and Jayashee Parmeshwar Nair" In the event of the amount being insufficient the amount payable to each of the said sons and daughters of the two daughters was to be proportionately reduced. In clause 2(b), 5 per cent of the income from the trust was set apart for "religious charitable and education and medical relief" for the poor and distressed relations of the said Govind Parmeshwar Nair and Kartika Parmeshwar Nair. In clause 2(c) it was provided that after the dath of Govind Nair and his wife, the amount coming to their share shall be distributed queally among their two daughters and their sons and/or daughters in equal proportion for their life Clause 2(d) is important and was as follows:-

"After the death of the said Govind Parameshwar Nair and Mrs. Kartika Parameshwar Nair and on the last son or daughter opf the said Mrs. Prakashini and/or Jayashree the trustees shall sell the trust property and divide the same amongst the children of the said Mrs. Prakashini and Jayashree in equal proportion." The trust was declared to be irrovocable by clause 3 . Clause 5 recites that the trustees shall not have the power to sell, mortgage or otherwise alienate the trust property without the sanction of the Court. Provided howevr, that during the life-time of the said Govind Parmeshwar Nair and Mrs. Kartika Parameshwar Nair they shall have the power with the consent of the other trustees to seel or mortgage the trust property without the order of the Court and hold the proceeds on the trust declared.

(3) When this document was lodged before the Sub-REgistrar of Assurances ir was engrossed upon a stamp paper of Rs. 25 and, therefore the Sub- Registrar impounded it and forwarded it to the Assistant Superintendent of Stamps because in his opinion it was a deed of settlement as defined in Section 2(t) and was chargeable under Article 55-A(II) of the first schedule to the Bombay Stamp Act. The Assistant Superintendent has held it to be so chargeable by his order, dated 10th September, 1962. The Chief Controlling Revenue Authority has upheld the decision of the Assistant Superintendent of Stamps, and decided that the s tamp duty should be as on a deed of settlement upon a valuation of Rs. 2,50,000 which was the value of the property.

(4) The settlors having asked for a reference the following questions have been referred for our decision-

(a) Whether the document falls within the definition of the word "settlement" under Section 2(t) of the said Ac

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