KESHWA RAM Vs. STATE OF H P

JUDGEMENT

(1.) INTERPRETATION of two exemption notifications issued under Section 9(1)(a) of the Indian Stamp Act and Article 1 of the Indian Registration Act is the subject matter of the present petition.

(2.) THE notification issued under Section 9(1)(a) of the Indian Stamp Act reads as follows:-

(3.) THE undisputed facts are that the petitioner is a member of the Cooperative Society known as Jogindra Central Cooperative Bank. He obtained a loan for purchase of a truck. He mortgaged his property to secure the repayment of the loan. He claimed exemption from payment of stamp duty and registration fee in terms of the aforesaid two notifications. It appears that the respondent No.2 initiated proceedings for recovery of stamp duty and registration fee from the petitioner. THE plaintiff thereafter filed civil suit in the Court of the Sub Judge, 1st Class, Kandaghat claiming benefit of the aforesaid two notifications and he prayed that a decree for declaration be passed that he is entitled to the benefit thereof and the respondents be restrained by a decree of prohibitory injunction from recovering the amount of stamp duty and registration fee as arrears of rent. This suit was decreed by the learned trial Court. However, the learned lower Appellate Court has set-aside the decree. According to the learned lower Appellate Court it is only the documents which directly relate to the Cooperative Society or its business which can legally be exempted or remitted from such levy. THE Appellate Court held that merely because the petitioner was a member of the Bank, he is not entitled to the exemption under the two notifications.