Law: Stamp Act (II of 1899)

Section: 7,57

Stamp Act (II of 1899)----S. S7-Chief Controlling Revenue Authority bound to refer case to High Court if it involves intricate question of law.   When a faculty or power is given to an authority for a parti cular purpose or for the benefit of particular persons under certain specified circumstances and it is shown that such circumstances exist, then an obligation is cast upon the authority to exercise it.   The power conferred under section 57, Stamp Act is for the benefit of resolving important questions of law arising in matters connected with the construction of documents. This power no doubt is to be exercised if there is doubt about the nature of a particular document. It is both for the benefit and advantage of the Revenue Department and the public at large and if such circumstances exist, the authority concerned is bound to exercise this power on application of a person affected.   Where what was described as a deed of trust, in which a sub stantial portion of the property involved originally belonged to the beneficiaries themselves, and where the Chief Controlling Revenue Authority had omitted to discharge the duty cast upon him as a public officer of referring the case to the High Court under S. 57, Stamp Act, holding that the document was a deed of settlement rather than a trust deed, and where the Revenue Authority had burdened the executant with the stamp duty and penalty:   Held, that the case involved an important and intricate: ques tion of law in respect of the construction of the document, and the executant was thus justified in king the airs, o: the, High Court, under its writ jurisdiction, to call upon the Revenue Autho rity to state the case under section 57 of the Stamp Act (II of 1899).   Date of hearing: 3rd February 1958.   JUDGMENT   WAHIDUDDIN AHMAD, J.-This writ petition is directed against the order of the Chief Revenue Controlling Authority, dated 30-12-1957 refusing to refer a case under section 57 (1), Stamp Act.   Briefly, the facts leading to the present petition are that the petitioner submitted a document purported to be a Declaration of Trust in respect of 3% Government of India Loan,…