Oral family settlement recorded in compromise does not itself become an instrument of partition for stamp duty purposes.

A decree or instrument that itself effects partition is chargeable to stamp duty under Article 45 of Schedule I, but an oral family settlement or oral partition is not an instrument of partition. A written memorandum or compromise order that merely records a completed oral settlement and existing division of property does not create or extinguish rights for the first time, and therefore does not attract stamp duty or compulsory registration as a partition instrument. On the stated facts, the parties had already orally settled the properties and taken possession accordingly, so the Registry's insistence on valuation and stamp duty before drawing the decree was unsustainable.

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Issues: Whether a compromise application recording an alleged oral family settlement and prior partition of properties amounted to an instrument of partition attracting stamp duty and registration, and whether the Registry's insistence on valuation and stamp duty before drawing the decree was justified.

Analysis: A decree of partition is an instrument of partition within the meaning of the Stamp Act and is chargeable to stamp duty under Article 45 of Schedule I. An oral partition or oral family settlement, however, is not itself an instrument of partition. A writing that merely records a completed oral partition or family settlement does not create or extinguish rights for the first time and does not, by itself, amount to an instrument dividing property. Such a memorandum only evidences a pre-existing arrangement. On the facts, the compromise application stated that the parties had already orally settled and divided the properties and had taken possession accordingly, so the compromise did not call for a decree of partition as such.

Conclusion: The compromise order recorded an existing oral family settlement and did not attract stamp duty as an instrument of partition. The Registry's objection requiring valuation and stamp duty was unsustainable, and the appellant succeeded.

Ratio Decidendi: A memorandum or compromise order that merely records a completed oral family settlement or oral partition, without itself creating the partition or transferring rights for the first time, is not an instrument of partition and does not attract stamp duty or compulsory registration as such.

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