The main legal point established in the judgment is the interpretation of the nature of the document and the fiduciary relationship between principal and agent under the law of agency.

This writ petition is filed for a direction against the order of the first respondent Inspector General of Registration, dated 06.01.98 by which the revision filed by the petitioner dated 27.05.96 has been rejected by holding that the documents produced for Registration should be treated as Settlement as per the Schedule 58A(1) of the Indian Stamps Act.

2. The petitioner and his brothers have executed a General Power of Attorney in favour of one G.Ponnuswamy, who is the Managing Trustee of P.K.Govindasamy Educational and Charitable Trust. The object of the trust was to advance, propagate and provide Nursery, Primary and Technical Education and so on. The said trust proposed to start a Polytechnic in Patchal Village and the petitioner and his brothers as owners of the property has only proposed to permit the said P.K.Govindasamy Educational and Charitable Trust to occupy the other lands and it was in that regard, the General Power of Attorney deed dated 112. 95 was executed.

3. The petitioner has never agreed to sell the property to the Educational Trust. When the documents were produced to the third respondent, Sub Registrar, Thirupattur, he referred the matter to the second respondent to ascertain the nature of the document. However, the second respondent has given an opinion that the said document should be construed as a conveyance deed. When revision was moved before the first respondent, the first respondent has construed the said document as a settlement deed and directed the payment of stamp duty as stated above. It is against this impugned order dated 06.01.98 passed by the first respondent the present writ petition is filed.

4. The first respondent has filed a counter affidavit. In the counter affidavit, the first respondent has admitted that the petitioner along with Mr.G.Ashokan and Mr.G.Yuvarajan have executed a deed styled General Power of Attorney deed on 112. 95 appointing M/s.P.K.Govindasamy Educational and Charitable Trust as agent. As per the counter affidavit, the Principals are also the trustees of the Trust. Therefore, a reading of the document shows that the Trust to be in possession and enjoyment of the property for the purpose of running a Polytechnic institution that it is not merely a Power of Attorney but a transfer and the Sub Registrar, Thirupattur has treated the document as pending document No.171/95 and referred it to the District Registrar about the nature of the said document. The District Registrar in the order dated 14.01.96 has classified the document as a deed of conveyance and that was challenged by way of Revision before the Chief Controller of Revenue Authority (C.C.R.A) under Section 56 (1) of the Indian Stamp Act, but by the impugned order has assigned the document as Settlement by way of declaration of trust. According to the first respondent, the principals are the joint owners of the property since, the property is an ancestral property of the family and the principals are also the trustees. Since the trust requires land to accommodate the Polytechnic Institution, the Principals are authorising the trust as their agent and utilise the land on their behalf. Therefore, according to the first respondent an over all reading of the documents shows that it is a transfer. It is also specifically stated that the word in the document produced for registration states as follows,

"To take possession of the properties morefully described in the schedule hereunder with standing trees, improvements and structures and enjoy the same."

clearly shows that the intention of the authors of the document is not merely to make the Trust of their Agent permitting them to use and to effect transfer.

5. Mr.V.Lakshminarayanan, learned counsel appearing for the petitioner would submit that reference to the document dated 112. 95, shows in clear terms that the idea of the document is to permit the agent to house the said technical institute in the property belonging to the Principals. The word a