R. R. RASTOGI, J. :- This is a reference under Section 57 of the Indian Stamp Act (hereinafter referred to as the Act); the main question being whether the document under consideration is or as not liable to stamp duty under Article 35(a)(ii) of Schedule I-B of the U.P. Stamp (Amendment) Act, 1962, as an agreement of lease.

2. The Municipal Board of Bareilly collects rubbish, manures etc. in trenches and pits at Nawab Nadi and Newada Sheikhan and after the rubbish and manures etc. get decomposed into manure the right of digging out and selling the same is granted to contractor in lieu of periodical payments. By means of an agreement entered on September, 6, 1963 between the Board on the one hand and Haji Sukhan Beg on the other, the right to take out by digging of manure and rubbish accumulated in trenches and drains within the municipal area of Bareilly was granted for a period of three years ending on June 30, 1965 on payment of Rs. 60,501.00 annually. On taking possession of the trenches and drains the contractor found that in a number of trenches and drains there was mud instead of manure and that was of no use to the agriculturists. Hence in order to compensate him for