CHIEF CONTROLLING STAMP AUTHORITY HYDERABAD Vs. STATE

JUDGEMENT

(1.) This is a reference by the Chief Controlling Stamp Authority to the High Court under section 55 of the Hyderabad Stamp Act (IV of 1331-F.) for a decision on the question of the proper stamp duty chargeable on certain documents which are termed " rental-deeds " , each also containing a clause whereby a third party undertook to guarantee the due payment of the stipulated rent and the performance of the other conditions of the lease. The point for determination in this reference is whether each of the leases in question is to be treated as relating to two distinct matters not forming parts of the same transactions, within the terms of section 5 of the Hyderabad Stamp Act, so as to require to be stamped both as a lease-deed and as a security bond.

(2.) The leases follow the same pattern and for the sake of convenience, the terms of a specimen deed may be set out :

(3.) It will be noticed that the language of these two sections is almost identical except that the words " and not forming part of the same transaction " , which occur in section 5 of the Hyderabad Act, do not find place in section 5 of the Indian Act. We have adverted to this difference in language only with a view to emphasise that certain decisions to which we shall presently refer, which have construed section 5 of the Indian Stamp Act of 1899 or its forerunner-section 7 of Act No. I of 1879- would apply with greater force to cases arising under the Hyderabad Act.