Adhesive stamps bearing the inscription "revenue" should be used on promissory notes executed in India.

( 1 ) ONLY question involved in this petition is whether non-fixation of adhesive stamp inscribed for the use of revenue shall render the pronote inadmissible in evidence.

( 2 ) IN the present case, an objection was raised as to admissibility of the pronote on the ground that it does not bear the stamp inscribed for the purpose of revenue. The pronote consists of special adhesive stamp of denomination of Rs. 5/-, 2/- and two stamps of 25 paise each. Thus, Rs. 7. 50 paise is affixed on the promissory note.

( 3 ) ONLY question involved in this case is whether special adhesive stamp can be affixed on a pronote.

( 4 ) FOR considering the position of law it will be appropriate to refer to S. 10 of Indian Stamp Act, 1899 (hereinafter referred to as the 'act' ). Section 10 of the Act is reproduced below :-"10. Duties how to be paid.- (1) Except as otherwise expressly provided in this Act, all duties with which any instruments are chargeable shall be paid, and such payment shall be indicated on such instruments, by means of stamps- (a) according to the provisions herein contained; or (b) when no such provision is applicable thereto as the State Government may by rule direct. (2) The rules made under sub-section (1) may, among other matters, regulate,- (a) in the case of each kind of instrument - the description of stamps which may be used; (b) in the case of instruments stamped with impressed stamps - the number of stamps which may be used; (c) in the case of bill of exchange or promissory notes the size of the paper on which they are written. "

( 5 ) SECTION 10 of the Act provides for mode of using the stamps. This section mandates that all the duties with which any instruments are chargeable shall be paid by means of stamp according to the provision contained in this Act, and if no such provision is applicable then as State Government may by rule direct. Thus, for affixing an adhesive stamp it shall be strictly in accordance with the rules framed by the State Government. Section 10 of the Act relates to use of adhesive stamps. Section 11 of the Act is reproduced below :-"11. Use of adhesive stamps.- The following instruments may be stamped with adhesive stamps, namely :- (a) instruments chargeable with a duty not exceeding ten naye paise, except parts of bills of exchange payable otherwise than on demand and drawn in sets; (b) bills of exchange, and promissory notes drawn or made out of India; (c) entry as an advocate, vakil or attorney on the role of a High Court; (d) notarial acts; and (e) transfers by endorsement of shares in any incorporated company or other body corporate. "in this section the instruments on which additional stamps may be used are provided. Under S. 11 adhesive stamps can only be used on promissory note when they are drawn or made out of India. The use of word "may" does not make it obligatory but permits adhesive stamps in case of instruments mentioned in the various clauses of the section and such instruments may be legally written or impressed on a paper also.

( 6 ) FOR the purposes of Ss. 10, 74 and 75 of the Act, Madhya Pradesh Stamps Rules, 1942 (hereinafter referred to as the 'rules') have been enacted. Rule 5 provides that a promissory note or bill of exchange shall, except as provided by S. 11 or by Rules 13 and 17, be written on paper on which a stamp of the proper value with or without the word "hundi" has been engraved or embossed. Thus, promissory note can be executed on a stamp paper of proper valuation. Rule 17 of the Rules is reproduced below :-"17. Adhesive stamp or stamps denoting duty of ten naye paise or five naye paise.- Except as otherwise provided by these rules, the adhesive stamps used to denote duty shall be the requisite number of stamps bearing the words "twenty-five naye paise" or "fifteen naye paise" or "ten naye paise" or "five naye paise" and such stamps may be inscribed for use for revenue. "on bare reading of this rule, it provides for denoting duty of requisite num