BOARD OF REVENUE Vs. SRIDHAR ADVOCATE

JUDGEMENT

(1.) This Reference has been made by the Chief Controlling Revenue Authority under Section 57 of the Indian Stamp Act in respect of a document because that Authority felt a doubt as to whether the stamp duty on the instrument was chargeable as a 'Settlement' or as a 'Trust'. The Following three questions have been drafted by the Authority on which our opinion has been sought: (1) Whether the draft deed under reference is a "Declaration of Trust" chargeable under Article 64, Schedule I-B of the Stamp Act; or (2) whether it is a "Settlement" as defined in Section 2(24)(b) of the Act, chargeable under Article 58, Schedule I-B of the Act, or (3) if it is neither, under what other category does it fall under the Stamp Act for purposes of charging stamp duty.

(2.) We may at the outset mention that it appears to us that in framing the questions for our opinion the Chief Controlling Revenue Authority appears to have proceeded on the incorrect basis that the instrument under the Stamp Act can be either a deed of trust or a deed of settlement only and not both. The word "Settlement" is defined in Section 2(24) of the Act as follows: " 'Settlement' means any non-testamentary disposition, in writing, of movable or immovable property made: (a) in consideration of marriage, (b) for the purpose of distributing property of the settlor among his family or those for whom he desires to provide, or for the purpose of providing for some person dependent on him, or (c) for any religious or charitable purpose; and includes an agreement in writing to make such a disposition and, where any such disposition had not been made in writing, any instrument recording, whether by way of declaration of trust or otherwise, the terms of any such disposition." This definition of the word "Settlement" itself makes it clear that even instruments which are executed containing a declaration of trust can be settlements provided the conditions laid down earlier in that definition are satisfied. The question in these circumstances that falls for our opinion is whether this particular instrument, to which this Reference relates, is a "Settlement" or not, even though it may, on the face of it, be a deed of Trust. Under Section 6 of the Stamp Act, if a deed of Trust also amounts to a Settlement, the stamp duty will be chargeable on it as an instrument of Settlement under Article 58 of the Schedule I-B of the Act, and not as an instrument of Trust under Article 64 of Schedule I-B of the Act.

(3.) We have heard learned counsel for the parties, and we have come to the conclusion that this instrument, to which this Reference relates, must be held to be a deed of Settlement within the meaning of that word as defined above.