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CS Professional · Drafting, Pleadings and Appearances · Laws relating to Drafting and Conveyancing

Anand and Bose Pvt Ltd complete a mortgage through three instruments: a mortgage deed (duty Rs 6,000), a deed of further charge (duty Rs 9,000) and a supplementary deed (duty Rs 4,000). The parties wish to designate the principal instrument themselves. Under the Act, what duty applies to the instrument they designate as principal?

The designated principal instrument must bear the highest duty that would be chargeable on any of the instruments employed, here Rs 9,000. The parties may choose which instrument is principal, but they cannot lower the duty by choosing one with a smaller scheduled duty.

  1. ARs 4,000, the lowest duty among the instruments
  2. BRs 9,000, the highest duty chargeable on any of the instrumentsCorrect
  3. CRs 6,000, the duty of the first instrument executed
  4. DRs 19,000, the total of all three duties

Explanation

The parties may decide which instrument is principal, but the duty on the instrument so determined must be the highest duty chargeable on any of the instruments employed. Here that is Rs 9,000. The other two then bear one rupee each.

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