Examine with reasons, whether the following transactions are exempted under the Indian Stamp Act, 1899 : (b) A purchaser of land executes a mortgage of the land in favour of the vendor for a portion of the purchase money

Section 4 of the Indian Stamp Act, 1899 provides that, where in the case of any sale, mortgage or settlement, several instruments are employed for completing the transaction, only the principal instrument shall be chargeable with the duty prescribed for the conveyance, mortgage or settlement. A purchaser of land executes a mortgage of the land in favour of the vendor for a portion of the purchase money. The mortgage is liable to full duty as a separate instrument. Section 4 does not apply.