MADRAS REFINERIES LTD. vs CONTROLLING REVENUE AUTHORITY, BOARD OFREVENUE, MADRAS

The Supreme Court held that the true nature of the Deed of Trust and Mortgage and the Guarantee Agreement must be determined irrespective of the parties' descriptions. The Court found that the Deed of Trust and Mortgage was the primary security for the loan, thus making it chargeable to stamp duty under Article 40(b) of the Indian Stamp Act, 1899. The appeal was dismissed, affirming the High Court's decision that the Guarantee Agreement did not exempt the Deed from stamp duty obligations.