Honble NAOLEKAR, J.–M/s. Bhilwara Spinners Ltd. is a public limited company incorporated under the provisions of the Indian Companies Act, 1956 and petitioner No. 2 is the President of the petitioner Company and is its share holder. M/s. Rajasthan Spinning & Weaving Mills Ltd. (hereinafter referred to as `the RSWM) purchased about 56 acres of land situated in village Bhilwara and village Malan, District Bhilwara from private parties under duly registered sale deed for the purpose of setting up industry for spinning/manufacturing cotton yarn etc. For the purpose of conversion of land for industrial purpose, the RSWM surrendered the land to the State of Rajasthan and thereafter applied for allotment of the said land under the provisions of Rajasthan (Industrial Areas Allotment) Rules, 1959. On or about 22.11.68, the State of Rajasthan executed a formal lease deed conveying the lease hold rights of the said property to RSWM. The said leave was for a period of 99 years with option for renewal for further period of 99 years at the instance of the lessee. The annual rent fixed was Rs. 1680/-. Shortly thereafter the RSWM set up a factory at Bhilwara on the aforesaid plot of land leased in its favour and commen- ced manufacture of cotton and synthetic yarn. Petitioner No. 1 M/s. Bhilwara Spinners Ltd. was set up as a subsidiary of M/s. Rajasthan Spinning & Weaving Mills Ltd. The unit of RSWM was transferred to petitioner no. 1 after the requisite approvals from the respective authorities. However, as the plot of land allotted to RSWM was leased by the State in favour of RSWM, an application was made to the State of Rajasthan to transfer the lease in favour of the petitioner Company.

(2). Pursuant to the above application of 14.7.83, the State of Rajasthan through the Department of Industries, issued an order and notification dated 14.7.83 granting permission for grant of lease of land in favour of the petitioner Company M/s. Bhilwara Spinners Ltd. as lessee, inter alia, under rule 9 of the Rajas- than Industrial Area Allotment Rules, 1959 subject to certain conditions including the condition that the supplementary lease deed would be executed by the petitioner Company for the balance period of 72 years.

(3). Pursuant to the order of the State of Rajasthan dated 14.7.83, the said land was mutated in the revenue records by the Tehsildar, Bhilwara in favour of the peti- tioner Company. Thereafter on 25.3.88 a supplementary lease deed was executed between the petitioner Company and the Governor of the State of Rajasthan in the State. The said supplementary lease deed was registered by the Sub Registrar, Bhilwara (respondent no. 2) on 28.3.88. The supplementary lease deed was executed on condition that the lease is for the balance period of 72 years on rent. The lessee shall have an option of renewal of the said lease for further period of 99 years after expiry of the present term of lease. The lessee shall be responsible for all the dues payable to the lessor and to other institutions, that the lessee shall not transfer the part of the plot without the permission of the State Govt. The said plot of land shall be used for industrial use, that the lessee shall pay annual rent of Rs. 1680/- per year of the said plot to the lessor.

(4). On 29.3.88, the Sub-Registrar, Bhilwara (respondent No. 2) made a reference to the Court of Collector (Stamps), Bhilwara on the ground that the supplementary lease deed was mis-classified or mis-described and in fact, it is a fresh lease deed on which stamp duty was payable on the basis of the value of the land being leased which was estimated to be about 79 lacs. Thereafter on 22.4.88, the District Registrar of Bhilwara (respondents No. 3) made further application to the Court of Collector (Stamps) repeating the allegations made by the Sub-Registrar, Bhilwara in the earlier report dated 29.3.88 in so far as the nature of the document was concerned and submitted that the stamp duty be calculated and levied not on

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