NATESAN, J. :- This is a reference by the Chief Controlling Revenue Authority, Madras, under S. 57 of the Indian Stamp Act, 1899, for our opinion whether the instrument in question is a mortgage with possession coming under Art. 40(a) of Schedule I of the Indian Stamp Act or an agreement.

2. The instrument styled as an agreement, is the record of a transaction common in the film trade, whereby the film producer raises finance for a film under production granting distribution rights in specified territories to the financier termed, the distributor. The instrument secures to the distributor the realisation of his advance by covenants giving him specified rights over the film. It generally specifies the title of the film and also names of prominent artistes, featuring or expected to feature in the film. The instrument in question under consideration has been entered into by Messrs. Sudarsanam Pictures, Film Producers, with Messrs. Gee Pictures (P.), Ltd., film distributors, in respect of a Tamil talkie entitled "Aval Yar". The document provides for the advance of a sum of Rs. 50,000, by the distributors to the producers, the amount to be paid in four instalments, the final ins