Seylan Bank Ltd. v. Samdo Macky Sportswear (Pvt.) Ltd. and Others – sllr 2008 volume 1 page 096

In the case between Seylan Bank Ltd and Samdo Macky Sportswear (Pvt.) Ltd and others, the issue addressed was whether a Guarantee Bond (Document P9), submitted following a loan default, qualifies as a “Bond” within the meaning of section 7(a) of the Stamp Duty Regulations under the Stamp Duty Act. The court determined that Document P9 did not constitute such a bond, as it represented only an agreement to pay conditioned upon breach, without imposing a primary, fixed monetary obligation secured by property. This holding reaffirmed the principle that documents which do not create direct, ascertainable obligations cannot be subjected to stamp duty as bonds. Reliance was placed on statutory interpretation and consideration of precedent, particularly distinguishing the case from decisions where