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Issues: (i) Whether the High Court's original jurisdiction was barred under Section 106(2) of the Government of India Act, 1919 in a suit challenging the stamp duty charged on a deed of transfer of lease; (ii) Whether the deed of transfer was chargeable under Section 25(a) or Section 25(b) of the Indian Stamp Act, 1899.
Issue (i): Whether the High Court's original jurisdiction was barred under Section 106(2) of the Government of India Act, 1919 in a suit challenging the stamp duty charged on a deed of transfer of lease.
Analysis: The expression "matter concerning the revenue" was construed broadly to include stamp duty, since duty collected under the Stamp Act forms part of the public revenue. The two parts of Section 106(2) were treated as covering, first, matters concerning revenue and, secondly, acts done in collection of revenue. The Court held that the suit, which in substance challenged the duty determined by the stamp authorities, fell within the protected area of revenue matters and was therefore outside the Court's original jurisdiction.
Conclusion: The jurisdiction of the High Court was barred, and the suit was not maintainable on that ground.
Issue (ii): Whether the deed of transfer was chargeable under Section 25(a) or Section 25(b) of the Indian Stamp Act, 1899.
Analysis: The decisive question was not the mere possibility of early termination of the lease, but whether the consideration payable under the transfer could be treated as payable for a definite period or for an indefinite time. A lease for ninety-nine years remained a lease for a definite period even though it could be terminated earlier at the lessee's option or on exhaustion of the mines. The section was directed to the ascertainment of the total amount payable for stamp purposes, and where that amount could be fixed by reference to a definite term, clause (a) applied rather than clause (b). The Court therefore accepted the stamp authorities' construction and treated the instrument as properly stamped.
Conclusion: The deed of transfer was chargeable as a document falling under Section 25(a), and the stamp duty charged was correct.
Final Conclusion: The challenge to the stamp duty failed both on jurisdiction and on merits, so the suit could not succeed.
Ratio Decidendi: A suit challenging stamp duty assessment is barred where the dispute concerns revenue within Section 106(2) of the Government of India Act, 1919, and for stamp purposes a lease stated for a definite term remains definite notwithstanding an early termination option, so the periodic consideration is assessed under the clause applicable to a definite period.
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