Section 5 of the Indian Stamp Act, 1899 deals with an instrument compr…

Question

Section 5 of the Indian Stamp Act, 1899 deals with an instrument comprising or relating to **several distinct matters**. The rule is:

Accepted Answer

C. {'text': 'Such instrument is chargeable with the aggregate amount of the duties with which each separate instrument, relating to one of such matters, would be chargeable under the Act', 'label': 'C'}

1. Section 5 of the Act addresses multifarious instruments (the reverse of Section 4).
2. "An instrument comprising or relating to several distinct matters is chargeable with the **aggregate amount of the duties** with which each separate instrument, relating to one of such matters, would be chargeable under the Act."
3. The expression "distinct matter" means distinct transactions (*Ram Swarup v. Joti*, 1933 ALJ 427; *Board of Revenue, Madras v. Narasimhan*, AIR 1961 Mad 504).
4. The test is the **"leading object"** test — where there is one leading object, Section 5 will not apply.
_Source: ICSI CS Executive Paper 1 — Jurisprudence, Interpretation & General Laws, Lesson 14 (Indian Stamp Act, 1899), pp. 337-353._

Answer

{'text': 'Such instrument is chargeable with only the highest of the duties applicable to such distinct matters under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force', 'label': 'A'}

Answer

{'text': 'Such instrument is chargeable with only the lowest of the duties applicable to such distinct matters under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force', 'label': 'B'}

Answer

{'text': 'Such instrument is exempt from any stamp duty in respect of those distinct matters under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force', 'label': 'D'}