NOTE : The Inspector General of Registration referred the following questions to the High Court :

"Whether the impounded deed of transfer dated 11-5-1942 executed at Ahmedabad and acted upon in Baroda is chargeable with a stamp duty of Rs.14-4-0 under Art.62 of Schedule I of the Indian Stamp Act in accordance with the assessment of the Collector of Baroda and of the Inspector General of Registration. Poona, as the Chief Controlling Revenue Authority for the purpose of Indian Stamp Act? (2) Whether the company is liable to a nominal penalty of annas 4/- on the said deed of transfer in accordance with the assessment of the Collector of Baroda and the Inspector General of Registration, Poona?"

CHAGLA, C.J.:- A rather interesting question arises as to the liability of a company to pay stamp duty in respect of a transfer of shares not duly stamped, and the question arises in the following way. The Jagdish Mills Ltd., is a public limited company which was incorporated in Baroda under the Baroda State Companies Act of Samvat year 1975. It appears that between 1942 and 1-4-1949, various transfer deeds were sent to the company duly executed from outside the Baroda State, and inasmuch