Under the orders of Krishnaswami Nayudu, J., on Application No. 1170 of 1951, the Board of Revenue, Madras, as the Chief Controlling Revenue Authority, submitted a statement of the case under section 57 of the Indian Stamp Act (II of 1899). The question for determination is the liability of the document, executed on 22nd March, 1948, by the Crompton Engineering Co. (Madras), Ltd. (referred to as the borrower) to Best & Co., Ltd. (referred to as the company in the document), to be stamped as a mortgage deed under the provisions of the Indian Stamp Act.

The clauses of that document, dated 22nd March, 1948, relevant for the determination of this question ran:

“Clause 1.-That the whole of the borrower’s floating assets .... and comprising lands, buildings and premises bearing door No. 27, Tiruvottiyur High Road, Madras, together with the electrical installations, plants and machinery, furniture and fittings, office and transport vehicles, loose tools, book debts, imprest cash with employees’ investments, interest accrued on investments, cash on hand and with bankers belonging to the Borrowers and all other stocks and goods of the Borrower whether raw or in process of ma