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Issues Involved:
1. Jurisdiction of the High Court under Section 106 of the Government of India Act, 1919. 2. Proper stamp duty to be charged on a deed of transfer of a lease. Issue-wise Detailed Analysis: 1. Jurisdiction of the High Court under Section 106 of the Government of India Act, 1919: The primary issue is whether the High Court has jurisdiction to entertain the suit based on Section 106(2) of the Government of India Act, 1919. The defendant argued that the High Court lacks jurisdiction as the matter concerns revenue, specifically stamp duty, which is a matter concerning the revenue. The section states, "The High Courts have not and may not exercise any original jurisdiction in any matter concerning the revenue, or concerning any act ordered or done in the collection thereof according to the usage and practice of the country or the law for the time being in force." The Court analyzed the section, noting it falls into two parts: the first part concerning any matter related to revenue, and the second part concerning acts done in the collection of revenue. The Court referenced the Privy Council's observations in Alcock, Ashdown & Co. v. Chief Revenue Authority Bombay, which suggested that preliminary proceedings to determine stamp duty fall under the first part, while actions taken to collect the determined duty fall under the second part. The Court concluded that the object of the statute is to bar jurisdiction in matters concerning revenue to protect it. It emphasized that if revenue authorities act in accordance with law, no cause of action arises against them. The Court cited Spooner v. Juddow, which established that even if revenue authorities act illegally but believe they are acting within statutory powers, they are protected. The Court found no evidence of mala fide actions by the defendant and supported its view with Madras decisions, emphasizing the finality of stamp authorities' decisions under the Indian Stamp Act. The Court rejected the argument that "revenue" in Section 106(2) only referred to land revenue, interpreting it to include stamp duty as admitted by the plaintiff's counsel. Thus, the Court held it had no jurisdiction to entertain the suit. 2. Proper stamp duty to be charged on a deed of transfer of a lease: The second issue concerns the proper stamp duty chargeable under the Indian Stamp Act, 1899, specifically under Section 25(a) and (b). The determination depends on whether the lease is for a definite or indefinite period. Section 25 states: - (a) For a definite period, the total amount payable can be previously ascertained. - (b) For an indefinite period, the total amount payable for twenty years is considered. The Court clarified that the section aims to ascertain the sum payable for calculating stamp duty. If the total sum for a fixed period can be ascertained, it falls under Sub-clause (a); if not, it falls under Sub-clause (b). The Court emphasized that the duration of the lease is distinct from the period for which payment is to be made. In this case, the lease was for ninety-nine years, with options for the lessee to terminate early or if the mines were exhausted. The Court held that despite these options, the lease was for a definite period of ninety-nine years, making it fall under Sub-clause (a). The Court referenced Mount Edgcumbe (Earl) v. Inland Revenue Commissioners, supporting the view that the term is definite even if contingencies exist. The Court rejected the plaintiff's argument that the lease's indefinite termination options made it fall under Sub-clause (b), emphasizing the plain meaning of the section. The Court concluded that the deed of transfer was properly stamped by the authorities. Conclusion: The suit was dismissed with costs, as the High Court lacked jurisdiction under Section 106(2) of the Government of India Act, 1919, and the stamp duty was correctly determined under the Indian Stamp Act, 1899. The Court expressed regret that the Chief Controlling Revenue Authority did not refer the case under Section 56 of the Indian Stamp Act, causing unnecessary expense and time.
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