LexS.N. MATHUR versus BOARD OF REVENUE & ORS.
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[2009] 2 S.C.R. 681 <;...\ S.N. MATHUR A v BOARD OF REVENUE & ORS. CIVIL APPEAL N0.4916 OF 2003 FEBRUARY 18, 2009 B (R.V. RAVEENDRAN AND J.M. PANCHAL, JJ.) Indian Stamp Act, 1899: Sections 2(24), 3, 5, 57 and Schedule 1-B, Articles 58, 64 - Trust Deed - Whether also answers the description of c settlement deed and whether stamp duty is payable under Article 58 of Schedule 1-B - Held: High Court rightly subjected the deed to stamp duty under Article 58 of Schedule 1-B - However, the case does not warrant levy of penalty equal to the deficit of stamp duty. D .. Words & Phrases: "Settlement", "deed of trust': "disposition" - Meaning of. In view of the facts of the case and the contentions raised, the question that arose for consideration in this E appeal was whether the instrument in question which answers the description of 'Trust deed', will also answer the description of "settlement deed", and if so whether stamp duty is payable-on the instrument, under Article 58 of Schedule 1-8 to the Indian Stamp Act, 1899 as amended in U.P. F Allowing the appeal in part, the Court HELD: 1. Merely because an instrument answers the definition of a trust deed it does not cease to be a settlement deed for the purpose of stamp duty, if it G answers the definition of 'settlement' also. It is well settled ..( that all trusts are not settlements, and all settlements are not trusts, but a deed of trust can also be a deed of sett\ement. [Para 7] [689-G] 681 H 682 SUPREME COURT REPORTS [2009] 2 S.C.R. A 2.1 It is evident from the definition of "settlement" in ~_,. section 2(24) of the Indian Stamp Act, that any non- testamentary disposition in writing, either of moveable or immovable property made for any religious or charitable purpose is a settlement. The definition also makes it clear B that even where there is no such disposition in writing, any instrument recording whether by way of declaration of trust or otherwise, the terms of any of such disposition ~ · will also be a settlement. It is thus evident that not only instruments which are non-testamentary dispositions of c property for any religious or charitable purpose, but also declarations of trust which record the terms of such disposition, are settlements. 'Disposition' is a term of wide import which encompasses any devise or mode by which property can pass and includes giving away or giving up D by a person of something which was his own.[Para 8] [689-H; 690-A-B] 2.2 In this case, the instrument is not termed as a "Settlement". It is clearly a declaration of trust and is described as a 'deed of Trust'. But it records the terms of E disposition of an immovable property for religious and charitable purposes. The operative portion of the instrument clearly recites that the three donors/Founders grant, convey and transfer their property 'Mathur Atithishala' unto the trustees (that is the three founders .. F and two others) and also declares that the Trust shall own, possess and manage the same as the absolute owner. The three executants of the Trust deed divested themselves of ownership of the property which was transferred to the Trust represented by five trustees. Thus G ·there was a disposition for religious and charitable purposes. It is thus clear that the instrument answers the definition of "settlement" under section 2(24) of the Act. j. As. the stamp duty leviable under a deed of settlement under Article 58 is more than the stamp duty leviable in H regard to a deed of trust under Article 64, the authorities S.N. MATHUR V. BOARD OF REVENUE & ORS. 683 ~ under the Stamp Act have rightly held that the instrument A is chargeable with the higher duty prescribed under Article 58 applicable to a settlement. [Para 8] [690-E-H; 691-A] The Commissioner of Giff Tax Madras vs. N. S. Getty Chettiar AIR 1971 SC 240; The Collector of Estate Duty B Andhra Pradesh vs. Kancharla Kesava Rao AIR 1973 SC 2485 and Goli Eswariah vs. Commissioner of Gift Tax AIR 1970 SC .... 1722 - relied on . • "Black's Law Dictionary" - referred to. '\ c 3. The decision to subject the deed to stamp duty under Article 58 of the Act is upheld. However, the case does not warrant levy of penalty equal to the deficit stamp duty. On the facts and circumstances, the penalty is reduced to Rs.5/- [Para 10] [694-C] D ,. Board of Revenue, U.P v. Sridhar, Advocate AIR 1964 All. 537 and The Chief Controlling Revenue Aut
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