Multiple lending transactions in one mortgage deed attract aggregate stamp duty under the Gujarat Stamp Act, 1958.

A mortgage deed executed in favour of a security trustee for thirteen lenders was treated as an instrument relating to several distinct matters because it secured multiple independent lending transactions within one document. Section 5 of the Gujarat Stamp Act, 1958 applied, while Section 4 was distinguished as covering several instruments used to complete one transaction. The fact that the lenders belonged to the same general category did not prevent the underlying loans from remaining distinct matters. Aggregate stamp duty was therefore chargeable, and the deficit duty with interest was payable.

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Issues: Whether the mortgage indenture executed in favour of a security trustee for the benefit of thirteen lenders constituted an instrument relating to several distinct matters or distinct transactions so as to attract Section 5 of the Gujarat Stamp Act, 1958, and whether additional deficit stamp duty was payable.

Analysis: Stamp duty is chargeable on the instrument, but Section 5 applies where a single instrument comprises or relates to several distinct matters. A mortgage deed executed after separate loan arrangements with multiple lenders, creating security in favour of a security trustee for the benefit of those secured parties, was held to reflect multiple distinct lending transactions embedded in one instrument. Section 4 was distinguished as dealing with several instruments used to complete one transaction, whereas Section 5 governs one instrument covering several distinct matters. The earlier Constitution Bench decision on distinct matters was applied to hold that commonality of category does not prevent the existence of distinct matters where the underlying interests and transactions remain separate.

Conclusion: The mortgage deed fell within Section 5 and was chargeable with aggregate duty. The respondent was liable to pay the deficit stamp duty together with interest.

Final Conclusion: The reference answered by the High Court was unsustainable, and the revenue's demand for additional stamp duty was upheld.

Ratio Decidendi: Where one instrument secures multiple independent lending transactions through a security trustee, it relates to several distinct matters and attracts aggregate stamp duty under Section 5 of the Gujarat Stamp Act, 1958.

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