The Notes were to be issued under and secured by a Deed of Trust and Mortgage between the Company and the First National City Bank.
9 10 74 of the Madras High Court in Referred ease No.
The Board decided on June 28, 1967 that the duty was chargeable on the Trust and Mortgage Deed under Article 40 b of Schedule I to the Act.
An agreement known as the Loan and Note Purchase Agreement was executed be tween the Company and the First National City Bank and six others on December 20, 1966, by which the Company agreed to authorise the creation and issuance of 14,880,000 U.S. principal amount of its 5 secured numberes Series A, and 7,440,300 U.S. principal amount of its 51/2 secured numberes Series S, and the sale of, or the borrowing to be evidenced by such Notes in accordance with the terms and provisions of the agreement.
37,66,500/ as stamp duty under protest, stating that it would move the Board for a reference of the companytroversy to the High Court.
The case was stated on March 28, 1969 and was decided by the impugned decision of the High Court dated October 9, 1974.
The Trust and Mortgage Deed was registered onJane 30, 1967, and the A series debentures were issued the same day.
chargeable, and the Collector referred the matter to the Board of Reve nue.
4 of 1968 Ram Reddy, C. Ramakrishna and A. V.V. Nair, for the Appellant.
It was a1so agreed that the Notes shall be secured and shall have the other terms and provisions provided in the agreement and shall be guaranteed by the President Of India pursuant to the terms of a Guarantee Agreement, in the prescribed form.
B series debentures were issued on June 28, 1968.
The Company applied to the Board of Revenue to state the case to the High Court.
The Company was incorporated under the Indian Companies Act, 1956, as a public limited companypany.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
Appeal by Special Leave from the Judgment and Order dt.
The Company feels aggrieved and has companye up in appeal to this Court.
709 of 1975.
The Deed of Trust and Mortgage and the Guarantee Agreement were executed between the President and the First National City Bank as Trustee on June 15, 1967.
In the meantime the Company made an application to the Collector under section 31 of the Act for opinion as to the stamp duty with which the Deed of Trust and Mortgage was.
It answered the first question in favour of the Revenue and the second question against the Madras Refineries Limited, hereinafter referred to as the Company.
The High Court directed the Board of Revenue to refer three additional questions, but ultimately took the view that the additional questions did number really arise in the case.
P. Raman, A.V. Rangam and Miss A Subhashini, for the Respondent.
The Board of Revenue, Madras, which was the Chief Controlling Revenue authority, initially stated the case raising the following questions for decision, Whether the decision of the Board of Revenue that the instrument relating to the Deed of Trust and Mortgage would attract the levy of a Stamp Duty as laid down in Article 40 b of Schedule I of the Indian Stamp Act mad that the debentures would be exempted from the levy of stamp duty is companyrect or number and Whether the claim of the Respondent herein that the stamp duty is payable on the debenture under Article 27 a and on the Deed of Trust and Mortgage under Article 40 c is tenable or number ?
The Judgment of the Court was delivered by SHINGHAL J. This appeal by special leave arises out of the decision of the Madras High Court dated October 9, 1974, on a reference by the Chief Controlling Revenue authority under section 57 of the Indian Stamp Act, 1899, hereinafter referred to as the Act.
