JAGDISH LALA Vs. COLLECTOR BUDAUN

JUDGEMENT

(1.) THIS is a reference made under S.57 of the Stamp Act by the Board of Revenue, U.P. The question referred are : "1. Whether on the facts and circumstances stated above, the document Annexure-'A' was an agreement to let in consideration of Rs. 50,000/- and as such chargeable to duty as a lease under Article 35(b), Sch.1-B of the Stamp Act as amended from time to time in its application to Uttar Pradesh ?

(2.) IN case the document in question is not held to fall under Art.35(b) of Sch.I-B, what stamp duty, if any, was chargeable on it ?" 2. The Municipal Board, Budaun, was the owner of certain market known as Sabzi Mandi. The right to hold the market for the period 1-4-1968 to 31-3-1969 was auctioned on 8-3-1968. Four bids were offered. The highest bid for Rs. 50,000/- was of Ram Swarup, Jagdish Lal, Jiwan Lal and Kishan Lal jointly. They signed the bid sheet in token of acceptance of their offer. The highest bid was accepted by the President of the Municipal Board, Budaun. The contractors also recorded their acceptance of the terms and conditions of the auction. The terms and conditions incorporated in the bid sheet were as under : 1. The market was to be let out for one year, i.e., 1-4-1968 to 31-3-1969. 2. The total bid money was to be paid on the completion of the auction.

(3.) THE case of the contractors was that the document in question was not an agreement, hence was not dutiable under Art.35(b) of Sch.I-B. On the contrary, the view of the Board was that since the document contained all the essential conditions necessary for an agreement to let, as such, Art.35(b) was clearly attracted.