VELO INDUSTRIES Vs. COLLECTOR BHAVNAGAR

JUDGEMENT

(1.) THIS is a reference made to us by the Chief Controlling Revenue Authority under s. 54(1A) of the Bombay Stamp Act, 1958. The question which arises for consideration on the reference is as to what is the proper article of the Act under which a certain instrument executed between the partners of M/s Velo Industries is chargeable. To determine the question it is necessary to refer briefly to a few facts giving rise to the reference. Prior to Aso Vad Amas Samvat year 2021, ten persons carried on business in partnership in the firm name of M/s Velo Industries. Three of them retired from the firm w.e.f. Aso Vad Amas Samvat year 2021 leaving the other seven as continuing partners of the firm. The terms and conditions of retirement were recorded in an instrument dt. 24th Oct., 1963, executed by and between the partners and, since the entire controversy between the parties has turned on the true interpretation of this instrument, it would be desirable to set out some of its material provisions in extenso. They read, according to their English translation :

(2.) IT is agreed between us that the accounts including determination of profit of the present administration up to Aso Vad Amas Samvat year 2021 are to be settled between us by mutual consent as soon as possible and whatever is the amount coming to the share of each of us is to be credited in his respective account with the firm and no one is to be entitled to raise any objection to the same.