IMPORTANT POINT
Time limit of three months stipulated in Section 18 of the Indian Stamps Act for collection of stamp duty in respect of document executed out of India is not applicable to a case where Court impounds a document and collects duty and penalty.

Headnote:Indian Stamp Act, 1899-Section 18 read with Sections 33 and 32- Instrument executed out of India-Impounding and collection of duty and penalty-Time limit of three months provided is for collection under Section 18 without impounding document-If three months already expired duty and penalty can be collected impounding document under Section 33-Time limit of three months not applicable when court impounds document and collects duty and penalty.
In a case where the unstamped document (other than bill of exchange) is produced as evidence, within three months of execution, the stamp duty can be collected without impounding and without penalty . If the document is sought to be used as evidence beyond three months, the above said bar of three months shall not apply, and the document can be impounded under Section 33 and stamp duty and penalty are levied, even after expiry of three months. The procedure permitting submission of a document within 3 months of its execution as in Section 18 is for collection of the stamp duty payable on the document. If it is produced as evidence within three months of execution, the stamp duty can be collected under Section 18, read with Section 32, without impounding the document under Section 33. But in case where 3 months have already expired from the date of execution of the document and later on the document is produced before the Court as evidence, it is permissible for the Court to impound document and collect the stamp duty and penalty and in such a situation, the time limit of 3 months provided in Section 18 and the clause (b) of Section 32 are not attracted. (Paras 5 & 6)

ORDER

This matter relates to a question of impounding a power of attorney executed outside India and presented in India for use in proceedings in the Supreme Court. The question turns upon interpretation of Sections 3(c) 11, 18, 32 and 42 of the Stamp Act, 1899.

2. An order was passed on the last occasion on 3.11.2000, impounding the Power of Attorney dated 3-11-2000 and levying maximum penalty alongwith stamp duty and directing deposit of a sum of Rs.110/- in the treasury. Directions were also issued to the treasury to give the receipted chalan on the same day. That order reads as follows :-

"This application has been filed by the petitioner under Section 11 of the Indian Arbitration and Conciliation Act, 1996.

At the time of hearing of this application learned counsel for the respondent has raised an objection that the general power of attorney dated 15.12.1997 issued by the petitioner company of Malaysia in favour of Mr. Noor Amiruddin Bin Mohd. Nordin, Senior Vice President/General Manager, South Asian Region executed at Kualalumpur has not been properly stamped according to the Indian Stamp Act, 1899 and that, therefore, it is not admissible in India. The present petition under Section 11 is signed by the said power of attorney holder.

Learned counsel appearing for the petitioner has stated that, assuming the said plea is tenable, the petitioner has no objection to make good the required stamp duty and penalty.

Under Section 3(c) of the Indian Stamp Act, 1899, stamp duty is payable on every instrument (other than a bill of exchange or promissory note) mentioned in the Schedule, which, not having been previously executed by any person, is executed out of India on or after that day, relates to any property or to any matter or thing done or to be done in India and is received in India. As the document, though executed outside India, is sought to be used in India, for filing the application under Section 11 of the Arbitration and Conciliation Act, 1996, the power of attorney is liable to stamp duty under the Indian Stamp Act.

Under Article 48 of Schedule I of the Stamp Act, omitting clause (d) or (e) of Article 48 which refer to more than one person being authorised under the power of attorney and also omitting clause (f) which deals with power to sell immovable property, the maximum fee otherwise payable for a power of attorney is Rs.10/-, according to counsel on both sides.

I, therefore, impound the document under Section 33 of the Act, direct the petitioner to deposit stamp duty worth Rs.10/- plus the maximum penalty of ten times as provided in Section 40(1)(b). The total stamp duty and penalty liable to be deposited will be Rs.10/- x 11 = Rs. 110/-. The Registrar (Judicial) is directed to put his stamp on the challan to be produced by the petitioner s counsel. Thereafter, the petitioner will deposit Rs.110/- in the Treasury and produce the receipted challan back with the seal or endorsement of the treasury. Thereafter the Registrar (Judicial) will make an endorsement that the document was impounded by the Court and that the stamp duty and penalty has been paid. Then the document will be placed before Court.

For the above purpose, the original power of attorney shall be produced before the Registrar (Judicial) for completing the above formalities.

The Treasury Officer is directed to give the receipted challan on the same date on which it is presented, without raising any further objection.

Call the matter on 17.11.2000 in Chambers at 1.30 P.M. If the stamp duty is paid aforesaid, then this Court will be able to make an endorsement as per Section 42(1) of the Stamp Act Admitting the instrument in evidence.

3. The penalty and stamp duty have since been paid and the Original document dated 15.12.1997 is produced in this Court and also contains the endorsement of the Registrar of this Court to the following effect.

"This document was impounded by this Hon. Court under Section 33 of the Indian Stamp Act, 1899. As per the order of this Hon.

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2000 Supreme(SC) 1860

IMPORTANT POINTTime limit of three months stipulated in Section 18 of the Indian Stamps Act for collection of stamp duty in respect of document executed out of India is not applicable to a case where Court impounds a document and collects duty and penalty.

Cases Referred (1)

IMPORTANT POINT
Time limit of three months stipulated in Section 18 of the Indian Stamps Act for collection of stamp duty in respect of document executed out of India is not applicable to a case where Court impounds a document and collects duty and penalty.