( 1 ) THIS reference under Section 57 (1) of the Stamp Act, 1899, made to this Court by the Chief Controlling Revenue Authority, i. e. , Board of Revenue, Madhya Pradesh, arises under these circumstances.

( 2 ) ONE Manohar Kunwar Bai, the applicant made a gift of certain immovable property to Smt. Manju Kunwar Bai under a gift deed dated 9-4-1971. The property was valued at Rs. 5,000/- and stamp-duty was accordingly paid on this valuation. However, in the course of proceedings for assessment of Income-tax, the property was valued at Rs. 49,650/ -. The Income-tax Officer apprised the Collector of this under valuation of the gift deed. The Collector thereupon forwarded the same and desired the Collector of Stamps (Sub-Divisional-Officer, Balaghat) to take suitable action, After due notice to the applicant and after hearing her, the Collector of Stamps vide its order dated 313-1978, found the correct valuation of the property to be Rupees 49. 650/ and directed the applicant to pay the deficit stamp-duty and impose a penalty of Rs. 1,000/ -. The order of the Collector of Stamps was challenged by the applicant before the Chief Controlling Revenue Authority (Board of Revenue) under Section 56 (1) of Stamp Act. After hearing the applicant, the Chief Controlling Authority reached a positive conclusion that the order of the Collector of Stamps cannot be sustained for the reasons recorded in the order of reference. This is what the Authority said: "in the opinion of this Court, therefore, the order of the Collector of Stamps dated 31-3-1978 is bad In law and deserves to be set aside. " After recording this findings the Authority chose to refer the matter for decision to this Court.

( 3 ) WE are of opinion that this reference is wholly incompetent and need not be answered. The scheme of the Stamp Act is that when the Collector finds that a particular instrument is not duly stamped, he shall direct payment of necessary duty and shall also impose penalty under Section 40, which falls under Chapter IV of the Act. Chapter VI of the Act deals with Reference and Revision. Subsection (1) of Section 56 provides that the powers exercisable by the Collector under Chapter IV or V and under Clause (a), of the first proviso to Section 26 shall in all cases be subject to the control of the Chief Controlling Revenue Authority. Sub-section (2) of Section 56 permits a Collector acting under Section 31 or 40 or 41 in case he is in doubt as to the amount of duty with which any instrument is chargeable, to draw up a statement of the case and to refer it, with its opinion, for the decision of the Chief Controlling Revenue Authority. The next following Section 57 empowers the Chief Controlling Revenue Authority to state any case referred to it to the High Court if it arises in a State. Section 57 of the Act reads thus :

"57. Statement of case by Chief Controlling Revenue Authority to High Court.- (1) The Chief Controlling Revenue Authority may state any case referred to it under Section 56, sub-section (2), or otherwise coming to its notice, and refer such case, with its own opinion thereon,- (a) it it arises in a State, to the High Court for that State; (b) if it arises in the Union territory of Delhi or Himachal Pradesh, to tha High Court of Punjab; (c) if it arises in the Union territory of Manipur or Tripura, to the High Court of Assam; (d) if it arises in the Union territory of the Andaman and Nicobar Islands, to the High Court at Calcutta; and. (e) If it arises ir the Union territory of Laccadive. Minicoy and Amindivi Islands, to the High Court of Kerala. (2) Every such case shall be decided by not less than three Judges of the High Court, to which it is referred, and in case of difference the opinion of the majority shall prevail. "( 4 ) ACCORDING to Section 57 of the Act, the Chief Controlling Revenue Authority may refer a case not only when it comes to it on a reference by the Collector under Section 56 (2), but also when it otherwise