The case involved a dispute regarding the levy of an additional 3% stamp duty towards the Social Security Fund on a property transfer deed within the municipal limits of Gidderbaha. The authorities had imposed this additional duty under Section 3C of the Indian Stamp Act, 1899, as amended in Punjab.

The key issue was whether the 3% additional stamp duty was applicable to properties situated within a Category-B (Class-II) municipality like Gidderbaha, or only to Municipal Corporations and Class-I municipalities, as specified under the law.

The Court observed that both the Collector and Commissioner had misread Section 3C of the Act. The provision clearly states that the additional duty applies only to Municipal Corporations and Class-I municipalities. Since Gidderbaha is a Category-B (Class-II) municipality, the levy of the 3% social security fund was without legal basis.

The High Court held that the orders demanding the additional 3% stamp duty were erroneous and illegal. The impugned orders of the Collector and the Commissioner were set aside, and the writ petition was allowed.

The ruling reaffirmed that statutory interpretation must align with the clear language of the law, preventing unjust financial burdens on citizens due to administrative misreading.