In Brief
The Supreme Court upheld the demand for stamp duty on Municipal Corporation contracts for recovery of tolls and parking fees. The Court held that such contracts constitute a 'Lease' under Section 2(16)(c) of the Indian Stamp Act, 1899, as they involve letting of the right to collect tolls of any description. The extensive statutory definition of 'Lease' in the Stamp Act—which includes instruments by which tolls are let—is broader than the Transfer of Property Act definition. The contract satisfied the statutory requirements: it created rights and liabilities, was documented, and bore the parties' signatures. Consequently, stamp duty of Rs. 70/- per thousand on the contract amount was properly levied, and the High Court's dismissal of the writ petitions was affirmed.
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