28,88,678 represented the price payable for the machinery, vehicles stores, finished goods etc.
In the reference the following six questions were referred to the High Court for its opinion Whether in view of the above opinion of the Board, the principal sale deed dated 20.5.1968 is a companyveyance number only of the lands and buildings but also the machineries fixed in the earth in companysideration or Rs.36,64,678 in the light of section 24 of the Stamp Act and is chargeable with a duty of Rs.9,97,425 under Article 23 Schedule I B of the U.P. Stamp Amendment Act, 1962, as against Rs.
By its order dated March 2, 1970 the High Court referred the case back to the Chief Controlling Revenue Authority, Uttar Pradesh directing it to submit a fresh statement of the case incorporating certain additions and alterations referred to in that order along with certain other documents.
In its reference the Board of Revenue referred six questions for the opinion of the High Court.
7,76,000 mentioned in the deed and Rs.
100 each.
3.50 on each of the two declarations.
35,000 treating that the companysideration for the sale deed was Rs.
underlining by us As can be seen from the extract of the declaration given above that the properties which were being transferred under the document dated May 20, 1968.
65,00,000.
The Collector in his turn under section 56 2 of the Act referred the matter to the Chief Controlling Revenue Authority, i.e., Board of Revenue, Uttar Pradesh.
Somaiya Organics also executed a deed of declaration on October 28, 1968 stating that it had purchased the properties sold under the document dated May 20, 1968 subject to the equitable mortgage executed by Godavari Sugar Mills in favour of the Punjab National Bank Ltd. All the three documents, namely, the sale deed dated May 20, 1968 and the two deeds of declaration executed by Godavari Sugar Mills and by Somaiya Organics respectively acknowledging that the sale was subject to the equitable mortgage were presented before the Sub Registrar, Hata for registration.
The document dated May 20, 1968 had been written on a stamp paper of Rs.
It stated inter alia On the 15th day of December, 1964 the companypany deposited with the Punjab National Bank Ltd. hereinafter referred to as the Bank the title deeds of the Company aforementioned immoveable property with intent to create a security in favour of the Bank by way of equitable mortgage.
A list of title deeds so deposited with the Bank is set out in the Second Schedule hereto.
65 lakhs in the value for purposes of levying duty Godavari Sugar Mills and Somaiya Organics have filed these two appeals.
He was also of the view that each of the two supplementary deeds of declarations which had been written on stamp papers of Rs.3.50 should have been written on stamp papers of Rs.4.50 and one rupee was payable on each of them as deficient duty.
The above Rs.
7,76,000, represented the price payable in respect of the lands and buildings of the sugar factory as described in Schedule A attached to the said document and that the said document was being executed for the purpose of companyveying title in respect of the lands and buildings free of all incumbrances.
The creation of such security by way of equitable mortgage was authorised by a resolution of the Board of Directors of the Company passed on the 23rd day of October, 1964.
Before the above declaration was signed resolutions were passed by the Board of Directors of Godavari Sugar Mills and the Board of Directors of Somaiya Organics on 17th September, 1968 affirming transfer of property under the document dated May 20, 1968 subject to the equitable mortgage in favour of the Punjab National Bank Ltd. upto the limit of Rs.65 lakhs.
The Sub Registrar was of the view that the properties had been sold subject to two liabilities, one for Rs.
The sale deed recited that out of Rs 36,64,678, referred to above, Rs.
From the Judgment and Order dated 23.12.1971 of the Allahabad High Court in Misc.
Godavari Sugar Mills was the owner of a distillery plant companysisting of the lands, buildings, machinery etc.
Through inadvertance and oversight it has been stated in the said Deed of Sale that the Company had companyvenated that the entire property sold was free from all sorts of transfer charges or encumbrance created by the Vendor the companypany in favour of any one.
By a deed of Sale dated the 20th day of May, 1968 and made between the Company of the one part and Messrs. Somaiya Organics India Limited hereinafter for the sake of brevity called the S.O.I.L. of the other part, the Company transferred with effect from 1st June, 1967 all its right title and interest in the said immoveable property described in the First Schedule hereto along with the Buildings standing thereon in favour of the O.I.L. for the companysideration and on the terms and companyditions set out in the said deed of the Sale dated 20th May 1968.
7,76,000.
T. Desai, Mrs. A.K. Verma, Joel Peres and D.N. Mishra for the Appellants.
988 of 1972 is Somaiya Organics India Ltd. hereinafter referred to as Somaiya Organics and the appellant in Civil Appeal No.
It had entered into a technical companylaboration agreement with M s. Melle Bezons and in that companynection pursuant to the resolution of its Board of Directors passed on October 23, 1964 it had obtained a deferred payment guarantee upto the limit of Rs.
4.50 as against Rs.3.50 paid in each case?
These two appeals are filed under Article 136 of the Constitution against the judgment of the High Court of Allahabad in Miscellaneous Reference No.
That on March 2, 1962 Godavari Sugar Mills had resolved to sell the lands, buildings and machinery to Somaiya Organics for a companysideration of Rs.
Anil Deo Singh, Mrs. Sudhir Kulshreshta and Mrs. Shobha Dixit for the Respondent.
989 of 1972 is Godavari Sugar Mills Ltd. hereinafter referred to as the Godavari Sugar Mills .
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
466 of 1969.
Stamp Act Reference No.
The Sub Registrar accordingly impounded the sale deed and the deeds of declarations and forwarded them to the Collector for necessary action.
The resolution passed by the Board of Directors of Somaiya Organics on the 17th September, 1968, referred to above, companytemplated the execution of a tripartite agreement by and amongst Gadavari Sugar Mills, somaiya Organics and the Punjab National Bank Ltd. treating the deferred payment guarantee issued in favour of M s Speichim, Paris as having been given at the instance and on behalf of Somaiya Organics, companyfirming the equitable mortgage, and transferring the liability thereunder as mentioned in the draft tripartite agreement which had been placed before the Board for its companysideration.
3.50 on the two declarations.
The High Court by its judgment dated December 23, 1971 which is under appeal found that the two deeds of declaration were supplementary to the sale deed dated May 20,1968 and all the three should be read together to ascertain the terms of sale settled between the parties.
65 lakhs from the Punjab National Bank Ltd. in favour of M s. Speichim, Paris under an equitable mortgage by deposit of title deeds of its property including the lands and buildings referred to above.
1,20,00,000 and another for Rs.
The document further stated that in case the vendee was to pay any amount on account of any charge or incumbrances created by the vendor on the properties sold, the vendee would be entitled to get back the entire sale companysideration with interest at 1 per cent per month from the vendor.
65 lakhs being the companytingent liability under the equitable mortgage and directed that appropriate stamp duty should be companylected on Rs.72,76,000 in the case of the document dated May 20, 1968 and Rs.4.50 as against Rs.
466 of 1969 which was a reference made by the Chief Controlling Revenue Authority Board of Revenue, Uttar Pradesh under section 57 of the Indian Stamp Act, 1899 hereinafter referred to as the Act as in force in the State of Uttar Pradesh involving the question relating to the proper stamp duty chargeable in respect of a transaction under which certain lands and buildings belonging to Godavari Sugar Mills were sold in favour of Somaiya Organics.
The facts of the case are these.
In the said Deed of Sale it was also further stated that in case of vendee i.e. the S.O.I.L. might have to pay any amount by way of charge transfer or encumbrance created by the vendor i.e., the companypany on the said property the vendee i.e., the SOLL shall be entitled to get back the entire sale companysideration with interest at 1 per month from the said vendor i.e. the Company we say that it was number the intention either of the companypany or of the O.I.L. to transfer the said immoveable property described in the First Schedule hereto free from the charge created by the Company in favour of the Bank by way of Equitable Mortgage by deposit of title deeds as aforesaid and it was only through oversight and inadvertence that it was erroneously stated in the said Deed of Sale that the property was free from any encumbrance or charge, or that in the event of the S.O.I.L. having to pay any amount by way of charge transfer or encumbrance the S.O.I.L. should be entitled to get back the entire sale companysideration as stated aforesaid.
The Judgment of the Court was delivered by VENKATARAMIAH, J. The appellant in Civil Appeal No.
8,32,420.
situated in the village called Basahia alias Captainganj in the district of Deoria, State of Uttar Pradesh.
or Whether the sale deed aforesaid is a companyveyance only of lands and buildings in companysideration of Rs.7,76,000 plus Rs.1,85,00,000 total Rs.1,92,76,000 in the light of section 24 of the Stamp Act and is chargeable with a duty of Rs.
988 and 989 of 1972.
7,76,000 was to be paid number in cash but in the form of allotment of 7760 fully paid up equity shares of the face value of Rs.
being all moveable items, the sale and transfer of which had been companypleted by the parties to the document by manual delivery and the balance of Rs.
were being sold subject to the equitable mortgage which had been created in favour of the Punjab National Bank Ltd. in companynection with the deferred payment guarantee.
36,64,678 and pursuant to the said resolution a sale deed was executed on May 20, 1968.
Accordingly a fresh statement of the case was submitted to the High Court.
The reference was first heard by the High Court in March, 1970.
35,000 paid?
That on October 28, 1968 a declaration was signed for and on behalf of the Godavari Sugar Mills by the two Directors of the Godavari Sugar Mills who had been authorised to do so which had the effect of modifying or companyrecting certain error which had crept into the document dated May 20, 1968.
