B. K. MEHTA, M. P. THAKKAR, S. OBUL REDDI, J.

( 1 ) THIS suo motu reference made by the Chief Controlling Revenue Authority under sub-sec. (1) of sec. 54 of the Bombay Stamp Act 1958 (hereinafter called the Stamp Act) as applicable to Gujarat highlights an instance of partial legislative misfire which has resulted in a situation where a document liable to stamp duty having been already acted upon the revenue is not able to collect the duty which ought to have been paid on it or to enforce its payment. This has happened because the loophole which enabled a party to escape from payment of differential stamp duty on account of the different rates of stamp duty prevailing in the State of Gujarat on one hand and the other States was plugged to an extent by making a provision for charging the duty but the Legislature failed to carry out its object completely inasmuch as it failed to make a provision in respect of collection of such duty if the document was already acted upon.

( 2 ) THE history of the matter culminating in the present reference requires to be stated briefly. The Nutan Mills Limited (hereinafter referred to as the Company) is a public limited Company having its registered o

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