Commercial Leasing and Finance PLC vs Niranjan Canagasooriyam – SC APPEAL 23/2021-2021

In the case between Commercial Leasing and Finance PLC (formerly Commercial Leasing and Finance Limited) and Niranjan Canagasooriyam, the court addressed whether the instrument marked P2, an indemnity arising from a Factoring Agreement, was subject to stamp duty under the applicable statutes. It was held that, although P2 constituted a bond of indemnity, it did not fulfill the statutory requirements of being “for any definite and certain sum of money and affecting any property,” and therefore, was not liable for stamp duty. The principle reaffirmed is that such instruments must strictly satisfy both statutory criteria to attract stamp duty. This determination was made through analysis of the Stamp Duty Act, No. 43 of 1982, the Stamp Duty (Special Provisions) Act, No. 12 of 2006, and releva