SECY BOARD OF REVENUE Vs. SELLWELL TEA AGENCIES

JUDGEMENT

(1.) This is a reference made by the Board of Revenue under S.55(1) of the Kerala Stamp Act, 1959.

(2.) The Lord Krishna Bank Ltd. was the foreman of a kuri and M/s. Sellwell Tea Agencies, a subscriber. The ticket was prized at the 25th instalment. Under S.27(1) of the Kerala Chitties Act, 1975 the foreman was bound to take reasonable security for the due payment of future subscriptions before allowing the subscriber to draw the prize amount. The security taken by the Bank from the Agencies was in the form of the following letter:-

(3.) The first question to be considered, therefore, is whether the letter could be treated as a "mortgage deed" under S.2(n). The said sub-section reads:-