The Collector of Madras vs A.R.J. Runacres and Another

Alfred Henry Lionel Leach, C.J.—This is an application by the Collector of Madras for a declaration u/s 61 of the Stamp Act with regard to

the proper duty to be collected on certain documents filed as exhibits in a case which is being tried by the City Civil Court. The document consists

of three letters which when read together constitute a lease of a house in Hall''s Road; Egmore. The tenant agreed to pay a monthly rent of Rs. 250

in advance and to deposit with the landlord a month''s rent. No definite term is mentioned in these letters but the tenancy is determinable on three

months notice. When produced in Court the documents were unstamped and therefore were impounded. The Court held that they were stampable

under Article 4-C of Schedule I-A of the Act, that is, as an agreement"" not otherwise provided for."" The Collector contends that the documents

should be stamped under Article 30(a)(viii) or Article 30(c). Article 30(a)(viii) provides that where a lease does not purport to be for any definite

term the duty chargeable shall be the same as for a conveyance for a consideration equal to three times the amount or value of the average annual

rent which would be paid or delivered for the first ten years if the lease continued so long. Article 30(c) deals with a case where the lease is

granted for a fine or premium or for money advanced, in addition to the rent reserved. Here the duty is the same as for a conveyance for a

consideration equal to the amount or value of the fine or premium or advance, in addition to the duty which would have been payable on the lease,

if no fine or premium or advance had been paid or delivered. In these letters there is a provision for an advance of one month''s rent, which is to be

held as security for future payment of rent. In these circumstances we consider that the lease must be stamped under Article 30(c) and make a

declaration accordingly.

A copy of this order will be sent to the Collector.