( 1 ) THIS is a reference made under Section 54 (1a) of the Bombay Stamp Act, 1958 (Bombay Act No. 60 of 1958) by the Chief Controlling Revenue Authority, Gujarat State, Ahmedabad, who dismissed the revision application against the order passed by the Collector of Stamps, Surat imposing a duty of Rs. 27,191. 50 Ps. (Rupees twenty seven thousand one hundred ninety one and fifty paise) together with a penalty of Rs. 5. 00 (five) an agreement purportedly relating to deposit of title deeds, which came to the notice of the Collector of Stamps, Surat.

( 2 ) FACTS :- the applicant - M/s. Shailesh Textile Industries is a registered partnership firm and carries on business in textile through its 7 partners. The applicant-firm wanted to avail of loan and credit facilities and, therefore, approached Dena Bank, which is a corporate body and a nationalised bank under the provisions of Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (hereinafter referred to as "dena Bank" for short ). On 24/08/1974, Dena Bank sanctioned a term loan of Rs. 1,10,000. 00 (Rupees one lac ten thousand only) and also an advance of Rs. 10,00,000. 00 (Rupees ten lacs) under I. D. B. I. Rediscounting Scheme and desired to secure repayment of same by registered equitable mortgage of lands and buildings of the applicant. It appears that the title deeds mentioned in the First Schedule and relating to the properties described is Second Schedule of the agreement relating to deposit of title deed dated 9/12/1974, were delivered and deposited by the applicant on 3/10/1974 with the Dena Bank at its Regional Office situated at Nanpura, Surat. Dena Bank in order to secure repayment of (I) term loan of Rs. 1,10,000. 00, (ii) specific deferred payment guarantee limit under I. D. B. I. Rediscounting Scheme to the tune of Rs. 10,00,000. 00, (iii) dues in respect of the said credit facilities with interest thereon, (iv) any other credit facilities, which may be granted by the Bank to the applicant from time to time with interest and (v) such sums of money as may become due from time to time under the said credit facilities with other usual and lawful charges together with costs and expenses, obtained from the applicant-firm a registered deed dated 9/12/1974.

( 3 ) IN this Reference, the controversy centres around the above referred deed dated 9/12/1974 and, therefore, in order to determine the true nature and purport of the said deed, we propose to examine the material part of the aforesaid instrument by specific reference to following three clauses :- (1) The title deeds mentioned in the first Schedule hereto relating to the properties fully described in the Second Schedule hereto have been delivered and deposited by us on 3/10/1974 with Dena Bank at its. Regional Office situated at Nanpura, Surat, for securing on terms loan limit of Rupees 1,10,000/- only and to scure specific deferred payment guarantee limit under Industrial Development Bank of India Rediscounting Scheme to the tune of Rs. 10,00,000. 00 only and payment of the dues in respect of the said credit facilities with interest thereon at seven per cent over Reserve Bank of India interest minimum rate being 16% per annum and to secure the repayment under any other credit facility which may be granted by the said Bank to us from time to time with interest thereon at the aforesaid rate and all such sums of money as may become due from time to time from us in respect of said credit facilities with other usual or lawful charges together with costs and expenses which may be incurred by the said Bank. We further state that we have read and understood the terms of sanction of the credit facilities granted to us by Dena Bank and we agree to abide by the same. (2) We further state that the said documents of title referred to in Schedule a in respect of the property shown in Schedule b are deposited with Dena Bank with intent to create First Equitable Mortgage thereon i. e. on the lease-hold rig