KERALA GRAMIN BANK Vs. SAIFUDHEEN. M

JUDGEMENT

(1.) A short but interesting question has come up for consideration in this Original Petition. What is the stamp duty payable on an 'Agreement of Hypothecation' executed by a borrower in respect of a credit facility availed from a bank?

(2.) The Kerala Gramin Bank has come with this original petition aggrieved by the order of the Munsiff's Court, Manjeri, in O.S No.156/2019 dtd. 13/9/2023. The petitioner is the plaintiff in O.S No.156/2019 filed for recovery of an amount of Rs.4,85,500.00 together with interest at 13% per annum from 22/3/2019 till realisation and with cost on account of a vehicle loan sanctioned by them in favour of the predecessor in interest of the defendants therein. The loan was availed on 22/8/2014 by the predecessor in interest of the defendants by executing various security documents. As the security for the credit facility availed by him, a deed of hypothecation dtd. 22/8/2014 was executed by which he agreed that the vehicle will stand as a security for the due repayment of the loan. Along with the hypothecation agreement, a guarantee agreement was also executed. The defendants entered appearance and contended that the hypothecation agreement is not properly stamped and therefore cannot be admitted in evidence. This objection was accepted and hypothecation deed dtd. 22/8/2014 was impounded and the guarantee agreement was accepted in evidence and for further evidence the case was posted to 15/9/2023 and at that point of time this original petition is filed.

(3.) Heard Shri.Jawahar Jose, the learned Standing Counsel appearing for the petitioner and Shri.Firoz K.M, the learned counsel appearing for the 6th respondent.