SOUTH INDIAN BANK LTD Vs. N VENKATARAMAN CHETITIAR

JUDGEMENT

(1.) The revision petitioner was the petitioner in a claim pending before the Munsiff's Court of Kozhikode. He produced in that court an unattested instrument of hypothecation of goods executed by the 2nd respondent and three others in favour of the petitioner to secure a demand cash credit. The learned Munsiff was of the view that the document required stamp duty and since no stamp duty had been paid, it was liable for penalty and stamp duty. Accordingly the petitioner was directed to pay stamp duty and penalty amounting, in the aggregate, to Rs. 860.75. The petitioner appears to have filed a petition for review of the order but that was also dismissed and, ultimately, the petitioner had to pay the stamp duty and penalty.

(2.) It is contended on behalf on the revision petitioner that the State Government had exempted this class of documents from payment of stamp duty and the lower court was in error in levying stamp duty and penalty on this document. Under S.9 of the Kerala Stamp Act, 1959, the Government has been given the power to reduce or remit, whether prospectively or retrospectively the duties with which any particular class of instruments is chargeable from the payment of stamp duty. In exercise of this power, the State Government issued a Notification G. O. Ms/813/RD dated 2-9-1961 in the Gazette dated 12-9-1961, remitting the duty chargeable in respect of documents which come under the classification of unattested instrument evidencing an agreement relating to the hypothecation of movable property. This Notification has been published in the Statutory Rules and Notifications of Kerala 1961 at page 1075. In the light of this notification, it is clear that the order of the lower court directing payment of stamp duty and penalty is erroneous and cannot be sustained. But, in fairness to the learned Munsiff, I may observe that the notification was not brought to his notice at the time this matter was argued before him.

(3.) In the result, the order of the lower court directing payment of stamp duty and penalty of Rs. 860.75 is set aside. The lower court is directed to refund the stamp duty any penalty recovered from the petitioner. In the circumstances, there will be no order regarding costs.