HINDUSTAN CONSTRUCTION CO Vs. BOARD OF REVENUE

JUDGEMENT

(1.) This reference by the Board of Revenue under S.55 (1) of the Kerala Stamp Act (the Act for short) is for decision on the question of the proper stamp duty payable on a document produced by the Hindustan Construction Company Limited (hereinafter referred to as the Company) before the District Collector, Idukki for determination of stamp duty under S.31 of the Act. The Deputy Collector (General) Idukki who is vested with the powers of the Collector under the Act, referred the case to the Board of Revenue under S.54 (2) of the Act expressing his opinion that the document is chargeable to stamp duty under Art.6 (2) of the Schedule of the Act. The Board took the view that the document in question is a mortgage deed liable to stamp duly under Art.37 (b) of the Schedule of the Act, and declined the Company's prayer to refer the case for decision by this Court. In O. P. No. 1393 of 1980 N filed by the Company, a learned Judge of this Court by Judgment dated 21-1-1983 directed the Board to refer the case to this Court under S.55 (1) of the Act. The Board has accordingly referred the case for decision by this Court.

(2.) The document in respect of which an adjudication of the stamp duty payable is sought for by the Company is produced as Ext. P3. Ext. P3 refers to an agreement that the Company had entered into with the K. S. E. Board for the construction of a dam at Edamalayar, as per the terms of which the Company is entitled to advance payment against cost of equipments, tools and plant brought to site for use in connection with the work.

(3.) The document Ext. P3 purports to hypothecate the tools and equipments mentioned in the schedule valued at Rs. 11 lakhs to the K. S. E. Board, as security for the advance of Rs. 7,97,500.00 to be paid to the Company. Clause.1 to 4 of the document are extracted below: