SUPERINTENDENT OF STAMPS Vs. CHIMANLAL LALBHAI

JUDGEMENT

(1.) This is a reference under Section 57 of the Stamp Act of 1899. The question referred to us is:- With what stamp duty is each of the instruments referred to in paragraph 1 of the reference chargeable? The instruments are Exhibits A and B. They are in form transfers of shares signed by one of the three brothers in favour of each of the other two brothers respectively. Exhibit A is in respect of 960 shares and Exhibit B is in respect of 830 shares. We have heard arguments on this question on behalf of the Crown and on behalf of the parties interested. We are of opinion that these two instruments Exhibits A and B are chargeable under article 45 of Schedule I to the Stamp Act, as instruments of partition.

(2.) It appears that a partition among these three brothers was effected in November 1918. There was no deed of partition and the shares in question continued in the name of the eldest brother Chimanbhai. They were in his name before the family was divided in interest, and continued in his name after the severance of interest in 1918. It appears that in 1920 the brothers reduced to writing the terms of the partnership, which apparently was formed soon after this partition, and these shares are referred to in that deed as partnership property.

(3.) Thereafter in 1922 by means of the two instruments in question, the eldest brother Chimanbhai, in whose name the shares stood, sought to effect the transfer of the shares assigned to the share of each of the two other brothers. We are not concerned with 130 shares representing the difference between 960 and 830 shares as appearing in these instruments, because it may be that the value of these shares was otherwise made available at the time of the partition to that brother.