This revision presents an important question of law, pertaining to the admissibility of a promissory note, in the context of adequacy of stamp duty.

The petitioner filed O.S.No.145 of 2005 in the Court of Principal Senior Civil Judge, Tirupati, against the respondent for recovery of a sum of Rs.9,49,175/-, on the strength of a promissory note dated 12-05-2002. The trial of the suit commenced, and the cross-examination of PW-1, i.e., the petitioner herein is in progress. When he sought to mark the promissory note, as an exhibit, objection was raised by the respondent, as to its admissibility.

The promissory note was written on an impressed stamp paper of Rs.20/-, purchased in the State of Tamil Nadu. By executing that document, the respondent is said to have borrowed a sum of Rs.7 lakhs on 12-05-2002. Placing reliance upon Rule 3(iii) of the Indian Stamp Rules, 1925, as they apply to the State of Andhra Pradesh, (for short ‘the Rules’), it was urged that the instrument cannot be treated as valid, since it was executed in the State of Andhra Pradesh, by using a stamp paper, purchased in the State of Tamil Nadu. The trial Court passed a detailed order dated 31-08-2009, sustai