Bond classification under stamp law: an inter corporate deposit agreement creating an express repayment obligation was not merely an acknowledgment.

An instrument styled as an Inter Corporate Deposit Agreement was held to be a bond because it created a direct obligation to repay principal with interest and enhanced interest on default, rather than merely acknowledging an existing liability. The agreement was attested by witnesses and was not payable to bearer or order, which supported its character as a bond under Section 2(c)(ii) of the Bombay Stamp Act. The contemporaneous receipt was treated only as evidence of loan receipt and not as the source of the repayment obligation. The contention that the document was merely an acknowledgment of pre-existing debt was rejected.

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Issues: Whether the instrument styled as an Inter Corporate Deposit Agreement was a bond within the meaning of Section 2(c) of the Bombay Stamp Act, or merely an acknowledgment of a pre-existing liability.

Analysis: The instrument was executed by the parties, was attested by witnesses, was not payable to bearer or order, and contained an express promise by the borrower to repay the principal amount with interest and enhanced interest on default. The contemporaneous receipt did not itself create the obligation to pay; it only acknowledged receipt of the loan. Applying the test that a document is a bond if it creates an obligation in itself, and is not merely an acknowledgment of an existing liability, the agreement fell within Section 2(c)(ii) of the Bombay Stamp Act.

Conclusion: The Inter Corporate Deposit Agreement is a bond under Section 2(c) of the Bombay Stamp Act, and the contention that it was only an acknowledgment of pre-existing liability was rejected.

Ratio Decidendi: A document attested by a witness, not payable to bearer or order, and containing an express obligation to pay money, is a bond if it creates the obligation itself and is not merely an acknowledgment of an existing debt.

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