Distinct loan transactions under stamp law: a single mortgage deed securing separate loans attracts aggregate duty under Section 5.

A single mortgage deed that secured four separate loan agreements was treated as an instrument relating to several distinct transactions because each loan was executed on different dates, for different amounts, and in some cases with different borrower configurations. The obligation to create mortgage security attached independently to each loan instrument, so the deed did not become one composite transaction merely by aggregating the loans. Section 5 of the Maharashtra Stamp Act, 1958 therefore applied, and duty was chargeable in respect of each distinct loan transaction; the revisional order was upheld.

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Issues: Whether a single mortgage deed executed to secure four separate loan agreements constituted an instrument relating to several distinct transactions under Section 5 of the Maharashtra Stamp Act, 1958, or several instruments used in a single transaction under Section 4 of the Act.

Analysis: The loan agreements were separate, executed on different dates, for different amounts, and in some cases involved different borrower configurations. Each agreement required creation of mortgage security before or at the time of execution, indicating that the security obligation attached to each loan instrument independently. The mortgage deed did not evidence one composite loan transaction merely by aggregating the amounts. Applying the principle laid down for construing instruments covering multiple loan transactions, the mortgage deed was held to embrace distinct matters or transactions. The contention that the loan agreements were only ancillary to one principal mortgage transaction was rejected, and remand was found unnecessary because the revisional authority had already considered the relevant clauses and applied the correct legal test.

Conclusion: Section 5 applied, not Section 4. The mortgage deed was chargeable with duty in respect of each distinct loan transaction, and the impugned revisional order was upheld.

Ratio Decidendi: Where separate loan agreements, each carrying an independent obligation to create mortgage security, are later covered by a single mortgage deed, the instrument relates to several distinct transactions and attracts aggregate duty under Section 5 of the Maharashtra Stamp Act, 1958.

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