Subrogation and assignment distinction: recovery authorisation over a transit-loss claim was chargeable only as a power of attorney.

An instrument styled as a letter of subrogation and special power of attorney was held not to be a conveyance or valid assignment attracting higher stamp duty, because the insured's underlying claim was only a right to recover damages for loss in transit. A mere right to sue for damages is not transferable as property, and the use of assignment language could not convert that claim into a conveyance. Read with the distinction between subrogation and assignment of transferable interests, the document was chargeable only as a power of attorney under Article 42(c) of Schedule I-A of the Indian Stamp Act, 1899.

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Issues: Whether the instrument styled as a letter of subrogation and special power of attorney was a conveyance or assignment liable to higher stamp duty, or whether it was only a power of attorney chargeable under Article 42(c) of Schedule I-A of the Indian Stamp Act, 1899.

Analysis: The instrument authorised the insurer to pursue recovery against the transporter after indemnifying the insured, but the underlying right claimed by the insured was only a right to recover damages for loss caused in transit. A mere right to sue for damages is not transferable in law, and the attempted use of words of assignment could not convert such a claim into a conveyance or an assignment of property. The document had to be read in light of the legal distinction between subrogation and assignment of transferable interests, and the Court held that no transferable property right in the goods survived so as to attract conveyance duty.

Conclusion: The document was not a conveyance or valid assignment of property rights and was chargeable only as a power of attorney under Article 42(c) of Schedule I-A of the Indian Stamp Act, 1899.

Final Conclusion: The reference was answered in favour of the petitioner-company, and the instrument was held liable only to the stamp duty applicable to a power of attorney.

Ratio Decidendi: A claim for damages arising from loss of goods is a mere right to sue and is not assignable as property; an instrument authorising recovery proceedings in such circumstances does not become a conveyance merely because it uses language of assignment or transfer.

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