049-NLR-NLR-V-70-IN-RE-K.-I.-SAMSUDEEN.pdf
In re Samsvideen
209
1967 Present: Abeyesundere, J., and Samerawickrame, J.In re K. I. SAMSUDEEN
S. C. 208/67—Application for conferment of Sole TestamentaryJurisdiction on the District Court of Colombo in respectof the Estate of Katchi Ibrahim Samsudeen, deceased
Stamp duty—Death rf a person outside Ceylon leaving property within Ceylon—Application to Supreme Court to appoint court to exercise sole testamentaryjurisdiction—Mode of computing stamp duty leviable on the documents filed bythe applicant in the Supreme Court—Relevancy of gross value, and not the nettvalue, of the deceased's estate—Stamp Ordinance, Schedule A, Part III,paragraph 5—Estate Duty Ordinance, s. 21.
In an application to the Supreme Court for the conferment of sole testamen-tary jurisdiction on a District Court in respect of the estate of a deceased person,the stamp duty leviable on the documents filed by the applicant must bedetermined by reference to the probable market value, at the time of thedeath of the deceased, of all the property of the estate of the deceased. Indetermining that value no deduction shall be made in respect of any liabilitiesof the estate.
Oe-EER of Court concerning the stamp duty leviable on thedocuments filed by the applicant in an application for the confermentof sole testamentary jurisdiction on the District Court of Colombo inrespect of the estate of a deceased person.
S. Sharvananda, with M. T. M. Sivardeen, for the Petitioner.
M. Kanagasunderam, Crown Counsel, as Amicus Curiae.
210
ABEYESUNDERE, J.—In re Samsudeen
September 28, 1967. Abeyesundere, J.—
The question that arises for consideration in this case is the mode ofcomputing the stamp duty leviable on the documents filed by theapplicant in the Supreme Court in connection with application No. 208/67.That application is for the conferment of sole testamentary jurisdictionon the District Court of Colombo in respect of the estate specified in theapplicant’s petition. The Registrar of this Court has required theapplicant to stamp the documents on the basis that the stamp duty iscomputed by reference to the gross value of all the property of the estateof the deceased. The applicant’s contention is that the stamp dutyshould be computed by reference to the net value of the deceased’sestate.
It is settled law now that Part III of Schedule A of the StampOrdinance containing the duties in testamentary proceedings applies toDistrict Courts only. The Part of the Stamp Ordinance that applies toduties in legal proceedings in the Supreme Court is Part II of Schedule Aof that Ordinance. In the said Part II the stamp duties are determinedby reference to the value of the legal proceedings in the Supreme Courtbut there is no provision in that Part or in any other provision of theOrdinance specifying the mode of computing the value of any legalproceedings in the Supreme Court for the purpose of stamp duty. Underthe said Part III the value of testamentary proceedings in a District Courtfor the purpose of stamp duty is now determined in the manner set out inparagraph 5 of that Part. According to paragraph 5, the value of testa-mentary proceedings in a District Court is determined by reference to thevalue of the estate and it is provided in that paragraph that the value ofthe estate shall be taken to be the value as determined for the purpose ofestate duty of all property for the administration of which a grant ofprobate or letters of administration is required. The mode of deter-mining the value of property for the purpose of estate duty is specified inSection 21 of the Estate Duty Ordinance. Sub-section (i) of that Sectionprovides that the value of any property shall be estimated to be theprice which, in the opinion of an Assessor, such property would fetch ifsold in the open market at the time of the death of the deceased. There-fore in the case of testamentary proceedings in a District Court the valueof the estate for the purpose of paragraph 5 of Part III of Schedule A ofthe Stamp Ordinance is the value which, in the opinion of an Assessor,would be the market value of all property of the estate of the deceased atthe time of the death of the deceased.
We are of the view that the principle of determining the value of anestate in testamentary proceedings in a District Court may well be appliedto the determination of the value of an estate for the purpose of legalproceedings in the Supreme Court relating to the conferment of soletestamentary jurisdiction on a District Court. In the case before ustherefore the stamp duty leviable on the documents filed by the applicant
Ceylon Workers' Congress v. Superintendent of Roeberry Estate
211
must be determined by reference to the probable market value at thetime of the death of the deceased of all the property of the estate of thedeceased. In determining that value no deduction shall be made inrespect of any liabilities of the estate. We hold that the Registrar ofthis Court has taken the correct view, namely that the documents filedby the applicant are liable to stamp duty computed by reference to thegross value of all the property of the estate of the deceased.
Samerawickrame, J.—I agree.
Assessment of stamp duty upheld.