The value of the separated share or shares of the property for the purpose of stamp duty is the market value at the time of partition, minus any encumbrances or liabilities charged on the property, including the expenses for the marriage of the unmarried daughter, which are a legal liability of the joint family property.

( 1 ) THIS is a reference under Section 57 ( 1) of the Indian Stamp Act, 1899 (hereinafter to be called the Act) made by the Chief Controlling Revenue Authority, Delhi.

( 2 ) A partition deed was executed between Shri O. N. Talwar, petitioner. on his own behalf and as natural guardian of his minor sons, Shri Ra\i Talwar and Shri Ranjiv Talwar of the first part and Shrimati Kanta Talwar wife of Shri O. N. Talwar of the second part on 26. 7. 1966. With this partition deed was attached a schedule to form part of the deed in which total assets were shown as Rs. 7,68. 239-64. The amount of respective liabilities to he discharged by the erstwhile members of the family were shown as Rs. 4,07,115-09 leaving a net divisible asset of Rs. 3,61,124-55. The same was divided amongst the lour members in equal shares of Rs. 90,281-14. In the body of the deed it was stated that whereas it was obligatory on the Hindu Undivided Family to make adequate provision for maintenance, education and p the celebration of the wedding of Kumari Rita Talwar before partition was effected and further whereas it was also obligatory to make provision to discharge other liabilities and whereas a net asset divisible amongst the parties to this deed stood reduced to Rs. 3,61 124-55 after providing for the discharge of all family liabilities, the value of the share of each of the parties to this deed is Rs. 90. 281 -14. It was also stated that Shrimati Kanta Talwar as a part of her obligation is responsible for meeting all expenditure on maintenance, education and wedding of Kumari Rita Talwar. The said partition deed was presented for registration bearing the stamp of Rs. 2,709. 00. The Sub-registrar. Delhi, before whom it was presented, found that the stamp duty has been paid on the basis of net assets of Rs. 3,61,124-55 calculated after deducting Rs. 4. 07,115-09 being the amount of liabilities to be discharged by the different members, though the total value of the assets partitioned is Rs. 7. 68,239-64 which should bear the stamp of Rs. 4. 640. 00. According to him the stamp was deficient by Rs. 1,93 I. 00 and he, therefore impounded the deed by his order dated 27. 9. 1966 and sent it to the Collector for necessary action under Section 40 of the Act. The Collector of Stamps by his order dated 12. 10. 1966 issued notice to the petitioner requiring him to show cause, why he be not required to make payment of the deficiency and the penalty in accordance with Section 40 of the Act. Cause was shown by the petitioner vide his reply dated 24th October, 1966, and also on oral hearing before the Collector. The Collector, however, by his order dated 17. 11. 1966 found that the question whether the stamp duty has to be calculated on the future net assets or the present (gross) assets is not free from doubt and therefore he referred the matter to the Chief Controlling Revenue Authority, Delhi, under Section 56 (2) of the Act to enable the stamp duty to be calculated. The reference under Section 56 (2) was heard by the Chief Controlling Revenue Authority who was of the view that this was an important case involving a question of interpretation of law and is likely to effect in future such cases, he considered it necessary to have doubts on this question resolved by a reference to the High Court under Section 57 (1) of the Act. He, therefore, submitted the following question for reference to this court :-

"in a case of a deed of partition of the property of a Hindu Undivided Family, is it permissible to deduct from the value of gross assets the value of the expenses on obligations of the family under the Hindu Law e. g; maintenance, education and marriage of un-married daughter etc. when the amounts on these future expenses have not been specifically mentioned in the deed and share then calculate stamp duty on the value of the separated share of net assets under Article 45 of Schedule I-A of the Indian Stamp Act. "

( 3 ) THIS is how the matter has been pla