RAJ SACHDEVA Vs. BOARD OF REVENUE

JUDGEMENT

(1.) THIS is a reference made to this Court by the Chief Controlling Revenue Authority under Section 57 of the Indian Stamp Act.

(2.) THE circumstances in which the reference is made are these. Sri Raj Sachdeva was the proprietor of a business carried on under the name of Messrs Globe Travels. A company was incorporated under the Indian Companies Act under the name of Messrs. Globe Travels (Private) Limited of which Sri Rai Sachdeva was the Managing Director. In 1955 an oral agreement appears to have been entered into between Sri Raj Sachdeva as proprietor of Messrs. Globe Travels and the Company whereunder the former agreed to transfer his business to the Company in consideration of the allotment of fully paid shares. An allotment or 720 shares was made to Sri Raj Sachdeva on the 5th April, 1955. Thereafter the Company on 11 -1 -1956, filed with the Registrar, pursuant to Section 75(2) of the Indian Companies Act, 1956, particulars of the contract in the prescribed form. That form was signed by Sri Raj Sachdeva as a Director of the Company and bore a stamp of Rs. 2/ -, as an agreement under Article 5(c) of Schedule I -B to the Indian Stamp Act, as in force in this State.

(3.) THE question is not very accurately framed for the question is not whether the document of 11 -1 -1956, is an agreement but whether the prior oral contract the particulars of which are specified in that document would have been chargeable with duty as an agreement or as a conveyance had it been reduced to writing. The Board of Revenue, which is the Chief Controlling Revenue Authority, was inclined to the view that the document was duly stamped, but as it entertained some doubt with regard to the matter it thought it proper to make this reference.