SUPERINTENDENT OF STAMPS Vs. RAMKRISHNALAL DAHYABHAI

JUDGEMENT

(1.) This is a reference under Section 57 of the Indian Stamp Act, 1899. The question which is referred to this full bench is whether all or any of the notes (there are five memoranda in all) are chargeable with duty under Art. 43(a) of the first schedule to the Act or whether the said notes or any of them are exempt from stamp duty under Exemption (a) to Art. 5 of the Indian Stamp Act.

(2.) The matter originally came before this Court consisting of my learned brothers Divatia and Macklin and myself, and we adjourned the reference and sent it back, because we were not satisfied that the statements contained in the case were sufficient to enable us to determine the question referred to us, and we called for certain rules and regulations, if any, mentioned in each contract note with regard to the commodity mentioned therein. We directed that if there were no rules and regulations in respect of any commodity, then the necessary affidavit was to be filed to that effect.

(3.) It will be convenient in the first place to refer to the five memoranda, all of which are in the same terms, though they deal with different commodities. They are on printed forms in which details of the particular transaction are entered in pencil. The material part of the memoranda which is printed is as follows :- Please note that on the abovementioned date the following transaction (on condition) of giving and taking delivery of the goods has been effected on paki adat (terms) by your order. You shall have to pay margin against the transaction whenever we may demand the same and if you will make delay in remitting the same, we shall deal with the transaction at your risk according as we like. No objection of yours in that behalf shall hold good. The risk as regards the other party (to the contract) is on us. The said transaction is effected on the understanding that the rules and regulations of the association of the market concerned, which may be prevailing at the time and which may come in force hereafter, are binding. It was because of the last sentence that it was necessary to send the reference back in order to ascertain whether there were any rules and regulations which applied to any of the memoranda.