9911796707
TMI Blog2003 (11) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... Inter Corporate Deposit Agreement dated 27th February 1998. It is a document executed between the plaintiff and the defendant the recital clause in the agreement states that the defendant was in need of financial assistance and the plaintiff agreed to grant to the defendant Inter Corporate Deposit of ₹ 4,00,000/-. Paragraph No. 4 of the operative part of the agreement states that the Inter Corporate Deposit of ₹ 4,00,000/- was given to the defendant by cheque dated 27th February 1998, Clause Nos. (5) and (6) of the document are material and read as under :-- (5) The borrower shall repay the said ICD of ₹ 4,00,000/- (Rupees Four lakhs only) together with the interest thereon, on or before 28-4-1998. (6) The borr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by a witness, is not payable to the bearer and creates an obligation on the defendant to pay the principal sum of money of ₹ 4,00,000/- together with interest, and enhanced interest in case of default, to the plaintiff who is the lender. 6. The learned counsel for the plaintiff relies upon a judgment of this Court in Patel Stone Trading Co. v. Ram Sing reported in AIR1975Bom79 . In paragraph No. 4, the learned Single Judge observed : (Page 618 of 1974 Mh.L.J.) The real test to decide as to whether a particular document is a bond or not is to find out after reading the document as a whole as to whether an obligation is created by the document itself or it is merely an acknowledgment of a pre-existing liability. If there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . A separate money receipt is also issued by the defendant. After the said acknowledgment of the money, in paragraph No. 4, an obligation to pay money with interest is created by clause No. 5 and an obligation to pay interest at a higher rate is created by clause No. 6. The separate money receipt is merely an acknowledgment and does not by itself create an obligation to pay the money with interest, and further enhanced interest in case of default. Hence, the contention of the learned counsel that the Inter Corporate Deposit Agreement is merely an acknowledgment of a pre-existing liability is rejected. It has to be held that the Inter Corporate Deposit Agreement amounts a Bond as defined under Section 2(c) of the Bombay Stamp Act. 8. By v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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