In Re: Khetramoni Debya

This is a reference made by the District Judge of Muzaffarpur u/s 60(1), Stamp Act. A Hindu widow Srimati Khetramoni Debya was in possession of certain property by virtue of a decree made by the Subordinate Judge of Muzaffarpur in a suit for partition, having rights in this property similar to those of a Hindu widow in the property of a deceased husband. She desired to surrender her interest to her sons who would succeed to the property in the ordinary course on her death; and she executed a deed for that purpose on 17th May 1937, whereby she transferred the right to possession of the property to her three sons. The deed bore a stamp of Rs. 5 on the assumption that it was governed by, Article 55 of Schedule 1, Stamp Act, as a release. The District Judge is of opinion that the deed ought to have been stamped as a deed of gift or conveyance.

The widow has died since the reference was made, but since the reference is made by the District Judge for instructions on, a point of difficulty arising under the Indian Stamp Act, no question of abatement arises on account of the death of the widow.

It is suggested by the learned advocate, who originally represented the widow, that the execution of a deed of this bind is a mere effacement of the widow's interest, and that it should therefore be regarded as governed by Article 55. Article 55 governs instruments whereby any person may re-nounce a claim upon any other person or against any specified property, but in this deed the widow is not renouncing her claim upon property but transferring possession of it. The deed was an instrument of gift governed by Article 33 of Schedule 1 of the Act; and duty was payable on the value of the property conveyed, as described in the deed of gift.

The value should have been stated, not as the capital value of the property conveyed, but as the present value of the life interest of the widow, whatever that may have been at the time of execution of the deed.