S.1 Short title, extent and commencement

       (1) This Act may becalled the Indian Stamp Act, 1899.
       
       11. Sub-sec. (2) first subs, by the Adaptation of Laws Order, 1950, then again subs, by Act 43 of 1955, w.e.f. 1.4.1956. (2) It extends to the whole of India except the State of Jammu and Kashmir:
       
       Provided that it shall not apply to 22. Words subs, for the words "Part B States" by the Adaptation of Laws (No. 2) Order, 1956. [the territories which, immediately before the 1st November, 1956, were comprised in Part B States] (excluding the State of Jammu and Kashmir) except to the extent to which the provisions of this Act relate to rates of stamp duty in respect of the documents specified in entry 91 of List I in the Seventh Schedule to the Constitution.
      

S.2 Definitions

       In this Act, unless there is something repugnant in the subject or context,
       (1) "banker" includes a bank and any person acting as a banker:
       
       (2) "bill of exchange" means a bill of exchange as defined by the Negotiable Instruments Act, 1881, and includes also a hundi, and any other document entitling or purporting to entitle any person, whether named therein or not, to payment by any other person of, or to draw upon any other person for, any sum of money:
       
       (3) "bill of exchange payable on demand" includes
       
       (a) an order for the payment of any sum of money by a bill of exchange or promissory note, or for the delive

Legal Comments

• "Definition Scope" - Section 2 provides the core definitions used throughout the Indian Stamp Act, 1899, including bond (2(5)), conveyance (2(10)), partition (2(15)), settlement (2(24)), lease (2(16)) and correction/declaration-related terms (2(14)); these definitions guide how documents are classified for stamp duty. - [S. N. Mathur VS Board of Revenue; Edala Anitha VS Edala Sulochanamma; Board of Revenue, Madras VS M. Swaminatha Chettiar; SOCIAL UPLIFTMENT OF VILLAGE DOWN TRODDEN AND HEALTH ACTION, JAUNPUR VS STATE OF U. P. ; LRs of Deepchand VS Mahaveer Chand; VINEETA AGARWAL VS ADDITIONAL COMMISSIONER (ADMINISTRATION)]

• "Bond (Section 2(5))" - An instrument by which one person obliges to pay money to another; need not be payable to order or bearer and is typically attested; Section 2(5) is not exhaustive—courts treat other instruments as bonds where substance fits. - [BENGAL PAPER MILLS CO LTD VS COLLECTOR OF CALCUTTA; Rajkishore Pandey VS Gyan Chandra Jain; Bhismat Pandey VS Phoola]

• "Conveyance (Section 2(10))" - Conveyance covers the transfer of movable or immovable property; substance controls classification over mere nomenclature (e.g., releases can be treated as conveyances if they transfer rights). - [The Chief Controlling Revenue Authority, Board of Revenue, Madras. VS R. Thirthalu; Board of Revenue, Madras VS M. Swaminatha Chettiar]

• "Settlement (Section 2(24))" - Settlement includes non-testamentary dispositions or declarations of trust recording the terms of such disposition; “disposition” is broad and can cover bilateral/multilateral transfers; settlements may attract higher stamp duty under Article 58 vs Article 64 depending on the instrument. - [S. N. Mathur VS Board of Revenue; Edala Anitha VS Edala Sulochanamma]

• "Settlement vs Trust—Higher Duty" - Not every settlement is a trust, but where a deed divests ownership for religious/charitable purposes or records terms of disposition, it can be a settlement; stamp duty may be higher under Article 58 (settlement) compared with Article 64 (trust). - [S. N. Mathur VS Board of Revenue; Edala Anitha VS Edala Sulochanamma]

• "Partition (Section 2(15))" - Documents acknowledging or facilitating partition (even if arranged via panchayat or future-date arrangements) fall within 2(15) and are capable of being partition instruments; final decree for partition must be stamped appropriately. - [Board of Revenue, Madras VS M. Swaminatha Chettiar; A. V. M. (Retired) K. G. Mohan Chandra VS Arun Mohan Chandra]

• "Final Decree in Partition – Stamp Paper" - Once a preliminary order for sale or partition is issued, a final decree for partition must be drawn on stamp paper of adequate value; improper stamping can affect admissibility and execution. - [B. S. Goel VS Registrar, High Court of Delhi; A. V. M. (Retired) K. G. Mohan Chandra VS Arun Mohan Chandra]

• "Market Value for Stamp Duty on Partition/Decree" - Stamp duty for drafting final decrees and partition orders is often tied to the market value of the property and must reflect the value as of the relevant date; revisions may be capped by statutory limits. - [E. Samy VS E. Muthaih; K. Noorunnisa VS The District Collector]

• "Lease (Section 2(16))" - The definition of lease is broad under the Stamp Act (and in UP’s Act/Nexus with 2(16)); leases allowing transfer or right to immovable property (e.g., toll collection) can attract additional stamp duty under Article 35(b). - [SOCIAL UPLIFTMENT OF VILLAGE DOWN TRODDEN AND HEALTH ACTION, JAUNPUR VS STATE OF U. P. ]

• "Indemnity/Mortgage Context (Section 2(17))" - Some instruments may be characterized as indemnity bonds or mortgage-like arrangements depending on their substance; the court emphasizes looking at the instrument’s substance rather than nomenclature. - [The Chief Controlling Revenue Authority, Eoard of Revenue, Madras VS K. Subramaniam and others]

• "Correction Deed (Section 2(14))" - Corrections to plots/description in lease/deeds are treated as correction deeds when there is no new right created; stamp duty aligned with correction/deed rules (Article 34-A). - [VINEETA AGARWAL VS ADDITIONAL COMMISSIONER (ADMINISTRATION)]

• "Nomenclature vs Substance (Section 2(10))" - Substance of the instrument governs whether it is a conveyance, not its label; a document titled as an “agreement” could still be a conveyance if it transfers rights. - [Kaliappan VS Kuzhandhaivelu]

• "Admissibility of Xerox/ reconstructed copies" - If the original duly stamped document is lost or misplaced in court custody, a reconstructed document can be admissible and treated as the original for stamp purposes; however, if the original was not duly stamped, relying on a copy does not automatically cure the deficiency. - [Kasireddy Satyanarayana VS State of Andhra Pradesh]

• "Unstamped/Unregistered Hand Letters and Partition" - An agreement to execute a registered settlement deed (hand letter) may be treated as a settlement requiring registration and stamping; non-compliance can render evidence inadmissible or subject to revision. - [LRs of Deepchand VS Mahaveer Chand; Katepalli Jayarama Rao VS Katepalli Govinda Narasimha Rao S/o. Late Nagabushanam]

• "Settlement/Partition Decree – Stamp Paper Value" - A decree arising from family settlement or partition involving immovable property must be drawn on stamp paper of adequate value; failure to do so can render the decree defective for stamp purposes. - [Lt. Col. B. M. Khosla VS Col. S. K. Khosla (Retd. ); B. S. Goel VS Registrar, High Court of Delhi]

• "Penalty for Deficiency in Stamp Duty" - Deficiency in stamp duty or penalties are governed by sections beyond Section 2 (e.g., Sections 33 and 40); courts may set aside/modify penalties or defences where deficiency/ penalty is incorrectly imposed. - [NAND KUMAR AGARWAL VS STATE OF U. P. ]

• "Market Value Determination for Stamp Duty" - The market value used for stamp duty calculations can be based on the date of execution; changes in use or classification after execution may not retroactively affect the initial stamp duty unless specifically provided. - [SHAKUMBARI SUGAR AND ALLIED INDUSTRIES LTD. VS STATE OF UTTAR PRADESH; K. Noorunnisa VS The District Collector]

• "Settlement vs Gift Classification" - A document titled as a Deed of Settlement may still be stamped as a settlement even if it confers rights that would otherwise be seen under conveyance; the settlement definition governs liability irrespective of its other characterizations. - [Chief Revenue Controlling Authority (Revenue) Secretariat, Panaji VS Luis Guilherma Dias Colaco & others]

• "Classification – Disposition" - The term “disposition” in Section 2(24) includes bilateral or multilateral transfers and is not limited to formal instruments labeled as trusts; it encompasses any mechanism by which property can pass. - [S. N. Mathur VS Board of Revenue]

• "Partition Instruments as “Instruments of Partition”" - Final orders or instruments directed to partition are within the scope of “instrument of partition” and are liable to stamp duty accordingly under the Stamp Act. - [Delhi Towers Ltd. vs G.N.C.T. of Delhi; Hindustan Lever VS State Of Maharashtra]

• "General Principle – Substance over Nomenclature" - Across decisions, courts consistently emphasize that the true nature of an instrument is determined by its operative effect (substance) rather than the label used (e.g., “bond,” “gift,” “lease,” or “settlement”). - [Kaliappan VS Kuzhandhaivelu; State of Uttaranchal VS Khurana Brothers; BENGAL PAPER MILLS CO LTD VS COLLECTOR OF CALCUTTA]

• "Deeds Involving Family Arrangements" - Family settlements, even when informal or oral, may create rights in immovable property and thus attract stamp duty and registration requirements depending on whether they constitute settlements or partitions. - [B. S. Goel VS Registrar, High Court of Delhi; Malti Bai VS Khilona Bahu (since deceased) through L. Rs. Luxminarayan Soni; Edala Anitha VS Edala Sulochanamma]

Notes:- Citations refer to the provided sources in square brackets, reflecting the most closely aligned precedents and explanations regarding Section 2 of the Indian Stamp Act, 1899 and its key definitions and implications.

S.3 Instruments chargeable with duty

       Subject to the provisions of this Act and the exemptions contained in Schedule 1, the following instruments shall be chargeable with duty of the amount indicated in that Schedule as the proper duty therefor, respectively, that is to say
       (a) every instrument mentioned in that Schedule which, not having been previously executed by any person, is executed in 2525. Words "the Provinces" first subs, for the words "British India" by the Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948. then the word "States" subs, for the word "Provinces" by the Adaptation of Laws Order. 1950, and finally the word "India" subs, for the words "the States" by Act 43 of 1955. w.e.f. 1.4.1956. [India] on or after the first day of July, 1899;
       
       (b) every bill of exchange 2626. Words ins. by Ac

S.3(a)

       Sec. 3A first ins. by Act 44 of 1971, w.e.f. 15.11.1971, then om. by Act 13 of 1973, w.e.f. 1.4.1973, which was as under: "3A. Instruments chargeable with additional duty. (1) Every instrument chargeable with duty under section 3 read with Article No. 13, 14, 27, 37, 47, 49, 52, 53 or 62(a) of Schedule I shall, in addition to such -duty, be chargeable with a duty of ten paise. (2) The additional duty, with which any instrument is chargeable under sub-section (1) shall be paid and-such payment shall be indicated on such instrument by means of adhesive stamps bearing the inscription "refugee relief whether with or without any other design, picture or inscription. (3) Except as otherwise provided in sub-section (2), the provisions of this Act shall, so far as may be, apply in relation to the additional duties chargeable under sub-section (1) in respect of the instruments referred to therein as they apply in relation to the dutie

S.3(a)(a)

       Sec. 3AA first ins. by W.B. Act 8 of 1973, then om. by W.B. Act 15 of 1987, which was as under: '3AA. Instruments chargeable with additional duty. (1) Every instrument chargeable with duty under the first proviso to section 3, read with Schedule IA, shall, in addition to such duty, be chargeable with a duty of ten paise. (2) The additional duty with which any instrument is chargeable under sub-section (1) shall be paid and such payment shall be indicated on such instrument by means of an additional stamp of 10 paise denomination bearing the inscription "surcharge", whether with or without any other design, picture or inscription. (3) Except as otherwise provided in sub-section (2), the provisions of this Act shall, so far as may be, apply in relation to the additional duties chargeable under sub-section (1) in respect of the instruments referred to therein as they apply in relation to the duty chargeable under the first provi

S.4 Several instruments used in single transaction of sale, mortgage or settlement

       (1) Where, in the case of any sale, mortgage or settlement, several instruments are employed for completing the transac tion, the principal instrument only shall be chargeable with the duty prescribed in Schedule I 3434. Words and letters ins. by Ben. Act 3 of 1922. [or in Schedule IA, as the case may be] for the conveyance, mortgage or settlement, and each of the other instruments shall be chargeable with a duty of one rupee 3535. Words and letters subs, for the words "instead of the duty (if any) prescribed for it in that Schedule" by Ben. Act 3 of 1922. [if the principal instrument be chargeable with the duty prescribed in Schedule I, or with a duty of 3636. Words "one rupee eight annas" first subs, for the words "one rupee" by Ben. Act 3 of 1922, then the words "two rupees" subs, for the words "one rupee eight annas" by Ben. Act 12 of 1935. (two rupees), if the principal instrument be chargeable with the duty
 &n

Legal Commentary on Section 4 of the Indian Stamp Act, 1899

Introduction

The Indian Stamp Act, 1899, is a legislative framework that governs the imposition of stamp duty on various instruments in India. Section 4 specifically addresses the duty chargeable when multiple instruments are employed to complete a single transaction, such as a sale, mortgage, or settlement.

What Section 4 Says

Section 4 states that when several instruments are used to complete a transaction, only the principal instrument shall be chargeable with the full duty prescribed, while the other instruments shall incur a nominal duty of one rupee each.

Essential Ingredients

• Principal Instrument: The main document that governs the transaction.
• Multiple Instruments: Any additional documents that facilitate the transaction.
• Duty Chargeable: The highest duty applicable to any of the instruments involved.

Scope of Section

This section applies to various transactions, including sales, mortgages, and settlements, where multiple documents are executed to effectuate a single transaction. It aims to simplify the stamp duty process and prevent excessive taxation on related documents.

Punishment for Section

While Section 4 itself does not prescribe penalties, failure to comply with the stamp duty requirements as outlined in the Act may lead to penalties under other sections, such as Section 47-A, which deals with deficiencies in stamp duty.

Legal Comments

• Keyword: "Principal Instrument" - The principal instrument is the only document subject to the full stamp duty, while ancillary documents incur a nominal fee. [ MENDARIAN ENTERPRISES PVT. LTD VS INSPECTOR GENERAL OF REGISTRATION, RAJA ANNAMALAIPURAM]
• Keyword: "Multiple Instruments" - Section 4 clarifies that when multiple instruments are involved in a transaction, only the principal instrument is liable for the highest duty. [ Sarfaraz @ Safai VS State of U. P. ]
• Keyword: "Duty Chargeable" - The duty chargeable on the principal instrument is the highest duty applicable to any of the instruments used in the transaction. [ MENDARIAN ENTERPRISES PVT. LTD VS INSPECTOR GENERAL OF REGISTRATION, RAJA ANNAMALAIPURAM]
• Keyword: "Nominal Duty" - Other instruments used in the transaction are chargeable with a nominal duty of one rupee each, promoting fairness in taxation. [ SAHARA INDIA FINANCIAL CORPORATION LIMITED VS CHIEF CONTROLLING REVENUE AUTHORITY]
• Keyword: "Intention of Parties" - The intention of the parties at the time of executing the documents is crucial in determining the nature of the principal instrument. [ PACKING PAPER SALES (REGD. ) VS VEENA LATA KHOSLA]
• Keyword: "Admissibility of Evidence" - Instruments not duly stamped may be deemed inadmissible in evidence, emphasizing the importance of compliance with the Act. [ Shiva Sahakari up Jal Sinchan VS The Nanded District Central Co-op. Bank, Head Office: Station Road, Nanded]
• Keyword: "Market Value" - The determination of stamp duty is often based on the market value of the property at the time of the transaction. [ RAM ACHHAIBAR VS STATE OF U. P. ]
• Keyword: "Deficiency in Stamp Duty" - Authorities have the power to assess and demand additional stamp duty if the initial payment is found deficient. [ SHAILENDRA VS CHIEF CONTROLLING REVENUE AUTHORITY/ COMMISSIONER, AGRA DIVISION, AGRA]
• Keyword: "Limitation Period" - The limitation period for demanding additional stamp duty is typically four years from the date of the transaction. [ K. Palanisamy VS Sub-Registrar, Komarapalayam]
• Keyword: "Quasi-Judicial Authority" - Quasi-judicial authorities must adhere to fair procedures when determining market value and imposing penalties. [ Naresh Kumar VS State of Haryana]
• Keyword: "Refund of Stamp Duty" - In cases of overpayment or incorrect assessment, parties may be entitled to a refund of excess stamp duty paid. [ M. Abubackar Siddiq VS Inspector General of Registration, Chennai & Others]
• Keyword: "Legal Interpretation" - Courts have emphasized the need for clear legal interpretation of documents to ascertain their classification under the Stamp Act. [ T. T. Gnanamurugan VS Inspector General of Registration and District Registrar]
• Keyword: "Penalties" - While Section 4 does not impose penalties, related sections may lead to penalties for non-compliance with stamp duty requirements. [ SAHARA INDIA FINANCIAL CORPORATION LIMITED VS CHIEF CONTROLLING REVENUE AUTHORITY]
• Keyword: "Single Transaction" - The Act recognizes that a single transaction may involve multiple instruments, thus streamlining the duty assessment process. [ NISHA KESARWANI VS STATE OF UTTAR PRADESH]
• Keyword: "Judicial Precedents" - Judicial interpretations of Section 4 have reinforced its application in various contexts, ensuring consistency in its enforcement. [ RAM SEWAK VS STATE OF UTTAR PRADESH]
• Keyword: "Government Guidelines" - Government guidelines may further clarify the application of Section 4 in specific contexts, such as agricultural land transactions. [ Anil Kumar Goyal VS State of Haryana]
• Keyword: "Fairness in Taxation" - The provisions of Section 4 aim to ensure fairness in taxation by preventing excessive duty on related instruments. [ ATUL KUMAR VS STATE OF U. P. ]
• Keyword: "Instrument Classification" - The classification of instruments as principal or ancillary is vital for determining the applicable stamp duty. [ The Secretary To The Commissioner VS The South Indian Bank, Limited]
• Keyword: "Legal Compliance" - Compliance with the provisions of the Indian Stamp Act is essential for the validity of transactions and admissibility of documents in court. [ PACKING PAPER SALES (REGD. ) VS VEENA LATA KHOSLA]

This commentary provides a comprehensive overview of Section 4 of the Indian Stamp Act, 1899, highlighting its significance in the context of stamp duty and legal compliance.

S.5 Instruments relating to several distinct matters

       Any instrument comprising or relating to several distinct matters shall be chargeable with the aggregate amount of the duties with which separate instruments, each comprising or relating to one of such matters, would be chargeable under this Act. •

S.6 Instruments coining within several descriptions in Schedule I or in Schedule IA

       Subject to the provisions of the last preceding section, an instrument so framed as to come within two or more of the descrip- tions in Schedule I 36a36a. Words and letters ins. by Ben. Act 3 of 1922. [or in Schedule IA, as the case may be,] shall, where the duties chargeable thereunder are different, be chargeable only with the highest of such duties:
       Provided that nothing in this Act contained shall render chargeable with duty exceeding 36b36b. Words "one rupee eight annas" first subs, for the words "one rupee" by Ben. Act 3 of 1922, then the words "two rupees" subs, for the words "one rupee eight annas" by Ben. Act 12 of 1935. [two rupees] a counterpart or duplicate of any instrument chargeable with duty and in respect of which the proper duty has been paid 3737. Words, figure and letter ins. by Ben. Act 3 of 1922. [unless it falls within the provisions of section 6A],

S.6(a) Payment of West Bengal Stamp duty on copies, counterparts or duplicates when that duty has not been paid on the principal or original instrument

       Sec, 6A ins. by Ben. Act 3 of 1922.
       (1) Notwithstanding anything contained in sections 4 or 6 or in any other law unless it is proved that the duty chargeable under the Bengal Stamp (Amendment) Act, 1922, 3939. Words, figures and brackets ins. by Ben. Act 12 of 1935. [or the Indian Stamp (Bengal Amendment) Act, 1935] has been paid
       
       (a) on the principal or original instrument as the case may be, or
       (b) in accordance with the provisions of this section, the duty chargeable on an instrument of sale, mortgage or settlement other than a principal instrument or on a counterpart, duplicate or copy of any instrument shall, if the principal or original instrument would, when received in 4040. Words subs, for the word "Bengal" by the Indian Independence (A

S.7 Policies of sea-insurance

       (1)4141. Sub-sees. (1). (2) and (3) rep. by Act 11 of 1963, which were as under: "(1) No contract for sea-insurance (other than such insurance as is referred to in section 506 of the Merchant Shipping Act, 1894), shall be valid unless the same is expressed in a sea-policy. (2) No sea-policy made for time shall be made for any time exceeding twelve months. (3) No sea-policy shall be valid unless it specifies the particular risk or adventure, or the time, for which it is made, the names of the subscribers or underwriters, and the amount or amounts insured.". * * * * *
       
       (2)4141. Sub-sees. (1). (2) and (3) rep. by Act 11 of 1963, which were as under: "(1) No contract for sea-insurance (other than such insurance as is referred to in section 506 of the Merchant Shipping Act, 1894), shall be valid unless the same is expressed in a sea-policy.

S.8 Bonds, debentures or other securities issued on loans under Act 11, 1879

       (1) Notwithstanding anything in this Act, any local authority raising a loan under the provisions of the Local Authorities Loan Act, 1879, or of any other law for the time being in force, by the issue of bonds, debentures or other securities, shall, in respect of such loan, be chargeable with a duty of 4242. Words subs, for the words "eight annas per centum" by Act 6 of 1910. [one per centum] on the total amount of the bonds, debentures or other securities issued by it, and such bonds, debentures or other securities need not be stamped, and shall not be chargeable with any further duty on renewal, consolidation, sub-division or otherwise.
       
       (2) The provisions of sub-section (1) exempting certain bonds, debentures or other securities from being stamped and from being chargeable with certain further duty shall apply to the bonds, debenture

S.8(a) Securities dealt in depository not liable to stamp duty

       Sec. 8A first ins. by Act 22 of 1996, then subs, by Act 10 of 2000. Previous sec. 8A was as under: '8A. Securities not liable to stamp duty. Notwithstanding anything contained in this Act, (a) an issuer, by the issue of securities to one or more depositories shall, in respect of such issue, be chargeable with duty on the total amount of security issued by it and such securities need not be stamped; (b) where an issuer issues certificate of security under sub-section (3) of section 14 of the Depositories Act, 1996, on such certificate duty shall be payable as is payable on the issue of duplicate certificate under this Act; (c) transfer of registered ownership of shares from a person to a depository or from a depository to a beneficial owner shall not be liable to any stamp duty; (d) transfer of beneficial ownership of shares, such shares being shares of a company dealt with by a depository shall not be liable to duty under art

S.9 Power to reduce, remit or compound duties

       Sec. 9 renumbered as sub-sec. (1) of that sec. by the Adaptation of Laws Order, 1950.
       (1) 4646. Words "The Collecting Government" subs, for the words "The Governor General in Council" by the Government of India (Adaptation of Indian Laws) Order, 1937. [The 4747. Word "Collecting" om. by the Adaptation of Laws Order, 1950. ** * Government] may, by rule or order published in the [Official Gazette],
       
       (a) reduce or remit, whether prospectively or retrospectively, in the whole or any part of 4949. Words subs, for the words "British India" by the Government of India (Adaptation of Indian Laws) Order, 1937. [the territories under its administration], the duties with which any instruments or any particular class of instruments, or any of the instruments belonging to such class, or any instruments w

S.10 Duties how to be paid

       (1) Except as otherwise expressly provided in this Act, all duties with which any instruments are chargeable
       
       (a) according to the provisions herein contained; or
       (b) when no such provision is applicable thereto as the 5252. Words "collecting Government" first subs, for the words "Governor General in Council" by the Government of India (Adaptation of Indian Laws) Order. 1937, then the words "State Government" subs, for the words "collecting Government" by the Adaptation of Laws Order, 1950. [State Government] may by rule direct.
       
       (2) The rules made under sub-section (1) may, among other matters, regulate,
       
       (a) i

S.11 Use of adhesive stamps

       The following instruments may be stamped with adhesive stamps, namely:
       (a) instruments chargeable 5454. Words subs, for the words "with the duty of one anna or half an anna" by Act 19 of 1958. [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, 5555. Word "cheques" om. by Act 5 of 1927. * * * and promissory notes drawn or made out of 5656. Words "the Provinces" first subs, for the words "British India" by the Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948. then the word "States" subs, for the word "Provinces" by the Adaptation ol Laws Order, 1950, and finally the word "India" subs, for the words "the states" by Act 43 of 1955, w.e.f. 1.4.1956. [India];
 &

S.12 Cancellation of adhesive stamps

       (a) Whoever affixes any adhesive stamp to any instrument chargeable with duty which has been executed by any person shall, when affixing such stamp, cancel the same so that it cannot be used again; and
       (b) whoever executes any instrument on any paper bearing an adhesive stamp shall, at the time of execution, unless such stamp has been already
       
       (2) Any instrument bearing an adhesive stamp which has not been cancelled so that it cannot be used again, shall, so far as such stamp is concerned, be deemed to be unstamped.
       
       (3) The person required by sub-section (1) to cancel an adhesive stamp may cancel it by writing on or across the stamp his name or initials or the name or initials of his firm with the tru

S.13 Instruments stamped with impressed stamps how to be written

       Every instrument written upon paper stamped with an impressed stamp shall be written in such manner that the stamp may appear on the face of the instrument and cannot be used for or applied to any other instrument.

S.14 Only one instrument to be on same stamp

       No second instrument chargeable with duty shall be written upon a piece of stamped paper upon which an instrument chargeable with duty has already been written:
       Provided that nothing in this section shall prevent any endorsement which is duly stamped or is not chargeable with duty being made upon any instrument for the purpose of transferring any right created or evidenced thereby, or of acknowledging the receipt of any money or goods the payment or delivery of which is secured thereby.

S.15 Instrument written contrary to section 13 or 14 deemed unstamped

       Every instrument written in contravention of section 13 or section 14 shall be deemed to be unstamped.

S.16 Denoting duty

       Where the duty with which an instrument is chargeable, or its exemption from duty, depends in any manner upon the duty actually paid in respect of another instrument, the payment of such last-mentioned duty shall, if application is made in writing to the Collector for that purpose, and on production of both the instruments, be denoted upon such first-mentioned instrument by endorsement under the hand of the Collector or in such other manner (if any) as the 5757. Words "collecting Government" first subs, for the words "Governor General in Council" by the Government of India (Adaptation of Indian Laws) Order, 1937, then the words "State Government" subs, for the words "collecting Government" by the Adaptation of Laws Order, 1950. [State Government] may by rule prescribe.

S.17 Instruments executed in India

       All instruments chargeable with duty and executed by any person in 5858. Words "the Provinces" first subs, for the words "British India" by the Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948, then the word "States" subs, for the word "Provinces" by the Adaptation of Laws Order, 1950, and finally the word "India" subs, for the words "the States" by Act 43 of 1955, w.e.f. 1.4.1956. [India] shall be stamped before or at the time of execution.
       

Legal Commentary on Section 17 of the Indian Stamp Act, 1899

Introduction

The Indian Stamp Act, 1899, is a legislative framework that governs the imposition of stamp duty on various instruments executed in India. Section 17 specifically addresses the requirement for stamping instruments that are chargeable with duty, emphasizing the necessity of compliance at the time of execution.

What Section 17 Says

Section 17 mandates that all instruments chargeable with duty and executed by any person in India must be stamped before or at the time of execution. This provision establishes the legal obligation to ensure that the appropriate stamp duty is paid, thereby validating the instrument for legal purposes.

Essential Ingredients

• Chargeability: The instrument must be chargeable with stamp duty.
• Execution: The instrument must be executed in India.
• Timing: The stamp duty must be paid before or at the time of execution.

Scope of Section

The scope of Section 17 encompasses a wide range of instruments, including agreements, deeds, and contracts that require stamping to be legally enforceable. It applies to both movable and immovable property transactions, ensuring that the state receives the requisite revenue from such transactions.

Punishment for Section

While Section 17 itself does not prescribe specific penalties, failure to comply with the stamping requirements can lead to the instrument being deemed inadmissible in evidence, as outlined in Section 35 of the Act. Additionally, penalties may be imposed for willful neglect to pay the required duty.

Legal Comments

• "Stamp Duty Requirement" - Instruments executed in India must be stamped before or at the time of execution to be valid.
• "Market Value Determination" - The market value of property for stamp duty purposes is determined at the time of execution, not registration. [ SAYA TRADERS VS STATE OF U. P. ]
• "Admissibility of Unregistered Documents" - Unregistered documents that are required to be registered cannot be admitted in evidence unless specific conditions are met. [ GANGASHANKAR DUBEY VS SINDHU BAI]
• "Liability for Stamp Duty" - The liability to pay stamp duty arises at the time of execution of the instrument. [ Inspector General of Registration VS K. P. Kadar Hussain]
• "Impounding of Instruments" - Instruments that are insufficiently stamped may be impounded, and the party must pay the deficit along with penalties. [ Rayadurgam Gurappa VS Chowdam Kondappa]
• "Effect of Non-Compliance" - Failure to comply with stamping requirements renders the instrument inadmissible for any purpose under Section 35. [ K. Subramanian VS Ramachandra Naidu]
• "Judicial Interpretation" - Courts have emphasized the necessity of compliance with the provisions of the Indian Stamp Act and the Registration Act in determining the admissibility of documents. [ Jeevanlal VS Goverdhanlal]
• "Family Settlements" - Family settlements that create rights in immovable property must be registered to be enforceable. [ K. Subramanian VS Ramachandra Naidu]
• "Unregistered Lease Agreements" - Unregistered lease agreements are invalid and cannot be relied upon for legal relief. [ Affordable Infrastructure And Housing Project Pvt Ltd VS AEC Digital Studios Pvt. Ltd. ]
• "Deficient Stamp Duty" - The lessee is liable for deficient stamp duty on unregistered lease deeds. [ Krishan Kumar Singhal VS Punjab Sindh Kshetra]
• "Fraudulent Transactions" - Instruments executed under fraudulent circumstances are void and cannot be enforced. [ Mahendra Narayan Deo VS Prema Manjari Devi]
• "Compulsory Registration" - Certain agreements, such as those involving immovable property, are compulsorily registrable under the Registration Act. [ C. S. Agarwal VS Nirmal Jain]
• "Collateral Purposes" - Unstamped documents may be admissible for collateral purposes, but proper stamp duty must be paid for full admissibility. [ Jatti Veera Venkata Satyam VS Bosukonda Chinnadevi]
• "Judicial Discretion" - Courts have discretion in admitting documents based on their compliance with the Stamp Act and Registration Act. [ Nawab Mir Barkat Ali Khan Waleshan Bahadur VS Princess Manolya Jah]
• "Government Instruments" - Certain government instruments may be exempt from stamp duty under specific legislative provisions. [ Pushpa Devi, W/o. Shri Makhan Singh VS Union Of India Through The Ministry Of Law And Legislative Affairs]
• "Market Value Assessment" - The assessment of market value for stamp duty purposes must align with the date of execution of the deed. [ State of West Bengal VS Maya Misra]
• "Family Arrangements" - Family arrangements that do not create new rights may not require registration. [ Kaliappan VS Kuzhandhaivelu]
• "Judicial Review" - The scope of judicial review in matters concerning stamp duty and registration is limited to procedural compliance. [ Bachimanchi Venkata Kotayya Sastri VS The Province of Madras represented by the Collector of Kistna]
• "Legal Precedents" - Established legal precedents guide the interpretation and application of the provisions of the Indian Stamp Act. [ Mahavir Singh VS GNCT of Delhi]

This commentary provides a comprehensive overview of Section 17 of the Indian Stamp Act, 1899, highlighting its significance in the legal framework governing stamp duty and the implications of non-compliance.

S.18 Instruments other than bills and notes executed out of India

       (1) Every instrument chargeable with duty executed only out of 58a58a. Words "the Provinces" first subs, for the words "British India" by the Indian Independence (Adaptation of Central Acts and Ordinances) Order. 1948. then the word "States" subs, for the word "Provinces" by the Adaptation of Laws Order, 1950 and finally the word "India" subs, for the words "the States" by Act 43 of 1955. w.e.f. 1.4.1956. [India], and not being a bill of exchange, 5959. Word "cheque" om. by Act 5 of 1927. * * * or promissory note, may be stamped within three months after it has been first received in 58a58a. Words "the Provinces" first subs, for the words "British India" by the Indian Independence (Adaptation of Central Acts and Ordinances) Order. 1948. then the word "States" subs, for the word "Provinces" by the Adaptation of Laws Order, 1950 and finally the word "India" subs, for the words "the States" by Act 43 of 1955. w.e.f. 1.4.1956. [I

S.19 Bills and notes drawn out of India

       The first holder in 58a58a. Words "the Provinces" first subs, for the words "British India" by the Indian Independence (Adaptation of Central Acts and Ordinances) Order. 1948. then the word "States" subs, for the word "Provinces" by the Adaptation of Laws Order, 1950 and finally the word "India" subs, for the words "the States" by Act 43 of 1955. w.e.f. 1.4.1956. [Indiaj of any bill of exchange 6060. Words ins. by Act 5 of 1927. [payable otherwise than on demand], 5959. Word "cheque" om. by Act 5 of 1927. * * * or promissory note drawn or made out of 58a58a. Words "the Provinces" first subs, for the words "British India" by the Indian Independence (Adaptation of Central Acts and Ordinances) Order. 1948. then the word "States" subs, for the word "Provinces" by the Adaptation of Laws Order, 1950 and finally the word "India" subs, for the words "the States" by Act 43 of 1955. w.e.f. 1.4.1956. [India] shall, before he presents th

S.19(a) Payment of duty on certain instruments liable to increased duty in West Bengal under clause (bb) of section 3

       Sec 19A ins by Ben. Act 3 of 1922. Where any instrument has become chargeable in any part of 58a58a. Words "the Provinces" first subs, for the words "British India" by the Indian Independence (Adaptation of Central Acts and Ordinances) Order. 1948. then the word "States" subs, for the word "Provinces" by the Adaptation of Laws Order, 1950 and finally the word "India" subs, for the words "the States" by Act 43 of 1955. w.e.f. 1.4.1956. [India] other than 6262. Words subs, for the word "Bengal" by the Indian Independence (Adaptation of Bengal and Punjab Acts) Order, 1948. [West Bengal] with duty under this Act or under any other law for the time being in force in any part of 58a58a. Words "the Provinces" first subs, for the words "British India" by the Indian Independence (Adaptation of Central Acts and Ordinances) Order. 1948. then the word "States" subs, for the word "Provinces" by the Adaptation of Laws Order, 1950 and final

S.20 Conversion of amount expressed in foreign currencies

       (1)Where an instrument is chargeable with ad valorem duty in respect of any money expressed in any currency other than that of 6464. Words "the Provinces" first subs, for the words "British India" by the Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948, then the word "States" subs, for the word "Provinces" by the Adaptation of Laws Order, 1950 and finally the word "India" subs, for the words "the States" by Act 43 of 1955, w.e.f. 1.4.1956. [India], such duty shall be calculated on the value of such money in the currency of 6464. Words "the Provinces" first subs, for the words "British India" by the Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948, then the word "States" subs, for the word "Provinces" by the Adaptation of Laws Order, 1950 and finally the word "India" subs, for the words "the States" by Act 43 of 1955, w.e.f. 1.4.1956. [India] according to the current rate o

S.21 Stock and marketable securities how to be valued

       Where an instrument is chargeable with ad valorem duty in respect of any stock or of any marketable or other security, such duty shall be calculated on the value of such stock or security according to the average price or the value thereof on the day of the date of the instrument.

S.22 Effect of statement of rate of exchange or average price

       Where an instrument contains a statement of current rate of exchange, or average price, as the case may require, and is stamped in accordance with such statement, it shall, so far as regards the subject-matter of such statement, be presumed, until the contrary is proved, to be duly stamped.

S.23 Instruments reserving interest

       Where interest is expressly made payable by the terms of an instrument, such instrument shall not be chargeable with duty higher than that with which it would have been chargeable had no mention of interest been made therein.

S.23(a) Certain instruments connected with mortgages or marketable securities to be chargeable as agreements

       6767. Sec. 23A ins. by Act 15 of 1904.
       (1) Where an instrument (not being a promissory note or bill of exchange)
       
       (a) is given upon the occasion of the deposit of any marketable security by way of security for money advanced or to be advanced by way of loan, or for an existing or future debt, or
       (b) makes redeemable or qualifies a duly stamped transfer, intended as a security, of any marketable security, it shall be chargeable with duty as if it were an agreement or memorandum of an agreement chargeable with duty under 6868. Words, figure, letter and brackets subs, for the words, figure, letter and brackets "Article No. 5(b)" by Act 1 of 1912. [Article No. 5(c)] of Schedule I.
       
   &n

S.24 How transfer in consideration of debt, or subject to future payment, etc. to be charged

       Where any property is transferred to any person in consideration, wholly or in part, of any debt due to him, or subject, either certainly or contingently to the payment or transfer of any money or stock, whether being or constituting a charge or incumbrance upon the property or not, such debt, money or stock is to be deemed the whole or part, as the case may be, of the consideration in respect whereof the transfer is chargeable with ad valorem duty:
       Provided that nothing in this section shall apply to any such certificate of sale as in mentioned in Article No. 18 of Schedule I. Explanation. In the case of a sale of property subject to a mortgage or other incumbrance, any unpaid mortgage-money or money charged, together with the interest (if any) due on the same, shall be deemed to be part of the consideration for the sale:
       
 &n

S.25 Valuation in case of annuity etc

       Where an instrument is executed to secure the payment of an annuity or other sum payable periodically, or where the consideration for a conveyance is an annuity or other sum payable periodically, the amount secured by such instrument or the consideration for such conveyance, as the case may be, shall, for the purposes of this Act, be deemed to be,
       (a) where the sum is payable for a definite period so that the total amount to be paid can be previously ascertained such total amount;
       
       (b) where the sum is payable in perpetuity or for an indefinite time not terminable with any life in being at the date of such instrument or conveyance the total amount which, according to the terms of such instrument or conveyance, will or may be payable during the period of twenty years calculated from the date

S.26 Stamp where value of subject-matter is indeterminate

       Where the amount or value of the subject-matter of any instrument chargeable with ad valorem duty cannot be, or (in the case of an instrument executed before the commencement of this Act) could not have been, ascertained at the date of its execution or first execution, nothing shall be claimable under such instrument more than the highest amount or value for which, if stated in an instrument of the same description, the stamp actually used would, at the date of such execution, have been sufficient:
       6969. Proviso subs, by Act 15 of 1904, which was earlier as under: "Provided that in the case of the lease of a mine in which a share of the produce is received as the rent or part of the rent, it shall be sufficient to have estimated such share, for the purpose of stamp-duty, at twenty thousand rupees a year, and the whole amount of such share, whatever it may be, shall be claimable un

S.27 Facts affecting duty to be set forth in instrument

       (1) The market value of, and the consideration (if any) for, any property and all other facts and circumstances affecting the chargeability of any instrument with duty, or the amount of the duty with which it is chargeable, shall be fully and truly set forth therein.
       
       (2) In the case of instruments relating to immovable property chargeable with an ad valorem duty on the market value of the property, and not on the consideration set forth therein, the instrument shall fully and truly set forth the annual land revenue in the case of revenue paying land, the annual rental or gross assets, if any, in the case of other immovable property, the local rates, municipal or other taxes, if any, to which such property may be subject, and any other particulars which may be prescribed by rules made under this Act.

S.28 Direction as to duty in case of certain conveyances

       (1) Where any property has been contracted to be sold for one consideration for the whole, and is conveyed to the purchaser in separate parts by different instruments, the consideration shall be apportioned in such manner as the parties think fit, provided that a distinct consideration for each separate part is set forth in the conveyance relating thereto, and such conveyance shall be chargeable with ad valorem duty in respect of such distinct consideration.
       
       (2) Where property contracted to be purchased for one consideration for the whole, by two or more persons jointly, or by any person for himself and others, or wholly for others, is conveyed in parts by separate instruments to the persons by or for whom the same was purchased, for distinct parts of the consideration, the conveyance of each separate part shall be chargeable with ad v

S.29 Duties by whom payable

       In the absence of an agreement to the contrary, the expense of providing the proper stamp shall be borne,
       (a) in the case of any instrument described in any of the following articles of Schedule I, namely: No. 2 (Administration Bond), [No. 6 (Agreement relating to Deposit of Title-deeds, Pawn or Pledge),] No. 13 (Bill of Exchange), No. 15 (Bond), No. 16 (Bottomry Bond), No. 26 (Customs Bond), No. 27 (Debenture), No. 32 (Further charge), 73. Words subs, for the words "one rupee" by Ben. Act 12 of 1935. 74. Words, figure and brackets subs, for the word, figure and brackets "No. 6 (Agreement to mortgage)" by Act 15 of 1904. No. 34 (Indemnity-Bond), No. 40 (Mortgage-deed), No. 49 (Promissory-note), No. 55 (Release), No. 56 (Respondentia Bond), No. 57 (Security-bond or Mortgage-deed), No. 58 (Settlement), No. 62 (a) (Transfer of shares, in an incorporated Company or other body corporat

S.29(a) Application of sections 23A, 24 and 29 to instrument charge- able with duty under Schedule IA

       Sec. 29A ins. by Ben. Act 3 of 1922. In applying sections 23A, 24 or 29 to any instrument chargeable with a higher rate of duty under the Bengal Stamp (Amendment) Act, 1922, 7878. Words, figures and brackets ins. by Ben. Act 12 of 1935. [or the Indian Stamp (Bengal Amendment) Act, 1935], the references in those sections to the several articles in Schedule I shall be deemed to be references to the corresponding articles in Schedule IA.

S.30 Obligation to give receipt in certain cases

       Any person receiving any money exceeding twenty rupees in amount, or any bill of exchange, cheque or promissory note for an amount exceeding twenty rupees, or receiving in satisfaction or part satisfaction of a debt any moveable property exceeding twenty rupees in value, shall, on demand by the person paying or delivering such money, bill, cheque, note or property, give a duly stamped receipt for the same. 7979. Paragraph ins. by Act 5 of 1906. [Any person receiving or taking credit for any premium or consideration for any renewal of any contract of fire-insurance, shall, within one month after receiving or taking credit for such premium or consideration, give a duly stamped receipt for the same.]

S.31 Adjudication as to proper stamp

       (1) When any instrument, whether executed or not and whether previously stamped or not, is brought to the Collector, and the person bringing it applies to have the opinion of that officer as to the duty (if any) with which it is chargeable, and pays a fee of such amount (not exceeding five rupees and not less than 8080. Words subs, for the words "eight annas" by Act 19 of 1958. [fifty naye paise] as the Collector may in each case direct, the Collector shall determine the duty (if any) with which, in his judgment, the instrument is chargeable.
       
       (2) For this purpose the Collector may require to be furnished with an abstract of the instrument, and also with such affidavit or other evidence as he may deem necessary to prove that all the facts and circumstances affecting the chargeability of the instrument with duty, or the amount of the dut

S.32 Certificate by Collector

       (1) When an instrument brought to the Collector under section 31, is, in his opinion, one of a description chargeable with duty, and
       
       (a) the Collector determines that it is already fully stamped, or
       (b) the duty determined by the Collector under section 31, or such a sum as, with the duty already paid in respect of the instrument, is equal to the duty so determined, has been paid, the Collector shall certify by endorsement on such instrument that the full duty (stating the amount) with which it is chargeable has been paid.
       
       (2) When such instrument is, in his opinion, not chargeable with duty, the Collector shall certify in manner aforesaid that such instrument is not so chargeable.
  &nb

S.33 Examination and impounding of instruments

       Sub-sec. (1) renumbered as clause (a) of that sub-sec, by W.B. Act 17 of 1990. (a) Every person having by law or consent of parties authority to receive evidence, and every person in charge of a public office, except an officer of police, before whom any instrument, chargeable, in his opinion, with duty, is produced or comes in the performance of his functions, shall, if it appears to him that such instrument is not duly stamped, impound the same.
       8888. Clause (b) ins. by W.B. Act 17 of 1990. (b) Notwithstanding anything contained in section 31, but without prejudice to the provisions of clause (a) of this sub-section, the Collector, before whom any instrument is brought under section 31 for determining the duty with which the instrument is chargeable, shall, if it appears to him that such instrument is not duly stamped, impound the same:
      &nb

S.34 Special provision as to unstamped receipts

       Where any receipt chargeable 9393. Words subs, for the words "with a duty of one anna" by Act 19 of 1958. [with a duty not exceeding ten naye paise] is tendered to or produced before any officer unstamped in the course of the audit of any public account, such officer may in his discretion, instead of impounding the instrument, require a duly stamped receipt to be substituted therefor.
       

S.35 Instruments not duly stamped inadmissible in evidence, etc

       No instrument chargeable with duty shall be admitted in evidence for any purpose by any person having by law or consent of parties authority to receive evidence, or shall be acted upon, registered or authenticated by any such person or by any public officer, unless such instrument is duly stamped:
       Provided that
       
       (a) any such instrument not being an instrument chargeable 9494. Words subs, for the words "with a duty of one anna or half an anna" by Act 19 of 1958. [with a duty not exceeding ten naye paise] only, or a bill of exchange or promissory note, shall, subject to all just exceptions, be admitted in evidence on payment of the duty with which the same is chargeable, or, in the case of an instrument insufficiently stamped, of the amount required to make up such duty, together with a penal

Legal Comments

• "Section 35" - Strict inadmissibility of unstamped or inadequately stamped instruments in evidence - The general rule is that instruments chargeable with duty, if not duly stamped, are inadmissible for any purpose, including collateral purposes, unless properly stamped or cured according to applicable procedures [Shiva Sahakari Up Jal Sinchan Sanstha Ltd. VS The Nanded District Central Co-op Bank - Current Civil Cases (2012)].

• "Collateral admissibility exception" - Unstamped documents can sometimes be used for collateral purposes only after proper stamping or under specific exceptions, but mere payment of deficit duty does not cure admissibility for collateral purposes in many precedents [Efcalon Tie Up Private Limited VS West Bengal Financial Corporation - Current Civil Cases (2018)], [Manish Singh Malukani S/o Shri Parasram Singh Malukani VS Hari Prasad Gupta S/o Late Chotelal Gupta - 2022 0 Supreme(MP) 463].

• "Curing defect by payment" - Payment of deficit stamp duty and penalty may cure admissibility in certain contexts (e.g., where allowed by Section 35 read with Section 36/40 as applicable in the jurisdiction), but this is not universal; many cases hold that non-duly stamped promissory notes cannot be received even after payment of deficit duty, especially for promissory notes or bills of exchange [Kallappa Pundalik Reddi VS Laxmibai Dattoba Vellaram and others - 1994 0 Supreme(Bom) 245], [Shiva Sahakari Up Jal Sinchan Sanstha Ltd. VS The Nanded District Central Co-op Bank - Current Civil Cases (2012)], [Penatapati Nageswara Rao VS Moka Narayanamurthi - 1937 0 Supreme(Mad) 257].

• "Promissory notes" - Promissory notes not duly stamped (including those payable not on demand) are typically inadmissible in evidence; defence often hinges on the stamp status under Article 49(b) and Schedule I, requiring stamping for admissibility [The firm of Shamlal and Co. , by partner Balliram Shamlal and two others VS V. R. C. Rajagopala Chettiar - 1977 0 Supreme(Mad) 148], [Shiva Sahakari Up Jal Sinchan Sanstha Ltd. VS The Nanded District Central Co-op Bank - Current Civil Cases (2012)].

• "Collateral purpose limitations" - Documents not properly stamped cannot be admitted even for collateral purposes; admissibility for collateral purposes may be treated differently only in scrutinized circumstances or upon proper stamping/registration, per many judgments [Efcalon Tie Up Private Limited VS West Bengal Financial Corporation - Current Civil Cases (2018)], [S. Venkatachalam VS Kamalathal - 2019 0 Supreme(Mad) 130].

• "Registration vs stamping interplay" - Under Section 17 of the Registration Act and Section 49 proviso, unregistered instruments affecting immovable property may be received as evidence of contract in specific relief proceedings but generally, non-registered/un-stamped documents face strict bar; the question often revolves around admissibility at trial vs final proof of title or contract [Penatapati Nageswara Rao VS Moka Narayanamurthi - 1937 0 Supreme(Mad) 257], [HUSEINMIYA SAFIMIYA VS HABIBSHA HASAMSHA FAKIR - 1985 0 Supreme(Guj) 82], [Kapu Anasuyamma VS K. Malla Reddy - Current Civil Cases (2012)].

• "Unregistered documents in family/partition contexts" - Family arrangements and partitions: unregistered documents can sometimes be looked at for collateral purposes if stamp duty is paid, but registration may be required for admissibility; courts may remand for fresh considerations on admissibility or permit collateral use after satisfying stamp/registration requirements [Ram Rattan VS Parma Nand - 1945 0 Supreme(Mad) 484], [Muthu VS Sampath - Madras (2024)], [Penatapati Nageswara Rao VS Moka Narayanamurthi - 1937 0 Supreme(Mad) 257].

• "Arbitral proceedings and stamping" - Arbitration clauses within unregistered/unstamped leases may still be examined by arbitral tribunal; stamping issues may be deferred to arbitration rather than invalidating the arbitration clause in civil court [AG Melco Techno Services Private Limited Formerly known as M/s.ETA Melco Techno Services Private Limited, Represented by its Director R. Kannan vs A. Mohammad Abdul Aziz S/o.t.m.k.a.ahmed Meeran - 2025 Supreme(Online)(MAD) 10640].

• "Temporary injunctions and stamp status" - In some transfer/lease disputes, temporary injunctions or injunctions in leases can be granted even if stamping is defective, but admissibility of the stamp-deficient document remains a matter for further proceedings or cure [Mallikarjuna Industries, Rep. by its Ambati Rajesh Kumar Reddy VS Vishwanatham Pedda Kondaiah, S/o. Chidambaram - 2022 0 Supreme(AP) 107], [Ram Rattan VS Parma Nand - 1945 0 Supreme(Mad) 484].

• "Admissibility of unregistered releases/deeds" - Unregistered release deeds or similar documents are generally inadmissible for collateral purposes unless duly stamped and registered; trial courts are expected to apply Section 17 and 49 proviso strictly [Muthu VS Sampath - Madras (2024)], [Penatapati Nageswara Rao VS Moka Narayanamurthi - 1937 0 Supreme(Mad) 257].

• "Evidence and readiness/willingness in specific performance" - For specific performance suits, admissibility of the sale agreement under Section 35 is crucial; a document lacking proper stamping may still support claims of readiness and willingness if the court ultimately admits and considers it after proper stamping/registration, depending on the case [G. Thandavarayan (deceased) VS A. D. Gunasekaran - 2024 0 Supreme(Mad) 2001], [Efcalon Tie Up Private Limited VS West Bengal Financial Corporation - Current Civil Cases (2018)], [HUSEINMIYA SAFIMIYA VS HABIBSHA HASAMSHA FAKIR - 1985 0 Supreme(Guj) 82], [Chinnammal VS Chinnathambi - 2009 0 Supreme(Mad) 5265].

• "Partition deeds and stamp duty on transfers" - Partition deeds involving property transfer require stamping; in some judgments, stamp duty and registration rules govern admissibility and enforceability of partition-related documents; non-compliance can bar admission in evidence [Nirmal A Jhabakh VS District Registrar, Stone House, Udhagamandalam Road - 2024 0 Supreme(Mad) 317], [Kapu Anasuyamma VS K. Malla Reddy - Current Civil Cases (2012)].

• "District-to-Higher court remedies" - When admissibility questions arise, revising courts may correct erroneous determinations about admissibility of evidence; revision can lie if admissibility is decided in a manner that affects the outcome of the case [Mangilal VS L. Rs. of Lal Chand - 1994 0 Supreme(Raj) 468], [Ram Rattan VS Parma Nand - 1945 0 Supreme(Mad) 484].

• "Promissory note admissibility and limitation" - A defective promissory note cannot be used to save limitation or as evidence of debt; separate contemporaneous agreements may be used to establish debt or acknowledgment if properly proven [Shiva Sahakari Up Jal Sinchan Sanstha Ltd. VS The Nanded District Central Co-op Bank - Current Civil Cases (2012)], [MAHADEO TUKARAM MAHAJAN VS RAMCHANDRA DEOYYA YELAMI - 1939 0 Supreme(Nagpur) 59].

• "Receivability vs evidentiary weight" - Even where a document is admissible after stamping/registration, its evidentiary weight depends on how it’s proven (execution, signatures, handwriting, surrounding circumstances); the mere stamping status does not by itself prove the underlying facts [Bhabatosh Pattanaik VS Binodini Panigrahi - 2016 0 Supreme(Ori) 569], [Chinnammal VS Chinnathambi - 2009 0 Supreme(Mad) 5265].

• "Examination of stamp status at time of execution" - The currency of stamping is tied to the time of execution; for stamp duty computations, courts consider the duty applicable at the time of execution, affecting admissibility and valuation [Jeevanlal VS Goverdhanlal - 2015 0 Supreme(Raj) 771], [Omprakash VS Laxminarayan - 2013 7 Supreme 449].

• "Role of collateral purposes in partition/family arrangements" - When stamp issues exist, courts sometimes allow collateral use of documents but direct that final decision on admissibility/finality be resolved during trial, potentially remanding for fresh consideration [K. Veerabadran & Another VS K. Venugopal & Others - 2009 0 Supreme(Mad) 2574], [Muthu VS Sampath - Madras (2024)].

• "Impounding vs non-impounding" - Courts weigh whether to impound a contested instrument where existence of the document is in dispute; impounding is inappropriate where the document’s existence is contested or where stamping deficiencies are evident [Raj Kumar Dehuri vs Rama Chandra Rana - 2025 0 Supreme(Ori) 259].

• "Effect of admissibility rulings on reliefs granted" - Admissibility decisions in specific cases (e.g., specific performance or possession suits) can influence relief, but courts often proceed with merits while ensuring stamping/registration compliance for the admissibility of the primary exhibit [G. Thandavarayan (deceased) VS A. D. Gunasekaran - 2024 0 Supreme(Mad) 2001], [01300001269].

• "Penalties for instrument not duly stamped" - Section 35 attaches penalties for executing instruments not duly stamped, with penalties potentially including fines; the remedy often involves impounding or collecting deficit stamp duty via Collector if required , [Penatapati Nageswara Rao VS Moka Narayanamurthi - 1937 0 Supreme(Mad) 257] (illustrative statutory context across cases).

• "Overall takeaway" - Section 35 of the Indian Stamp Act, 1899 imposes a strict bar on admissibility of unstamped or inadequately stamped instruments; curing via payment of duty/penalty is context-specific and widely contested across precedents; registration and collateral/exception rules (Sections 17, 49) interplay with admissibility in complex ways depending on the nature of the case (sale, lease, mortgage, partition, specific relief) [Shiva Sahakari Up Jal Sinchan Sanstha Ltd. VS The Nanded District Central Co-op Bank - Current Civil Cases (2012)], [Nirmal A Jhabakh VS District Registrar, Stone House, Udhagamandalam Road - 2024 0 Supreme(Mad) 317], [Penatapati Nageswara Rao VS Moka Narayanamurthi - 1937 0 Supreme(Mad) 257], [Muthu VS Sampath - Madras (2024)].

S.36 Admission of instrument where not to be questioned

       Where an instrument has been admitted in evidence, such admission shall not, except as provided in section 61, be called in question at any stage of the same suit or proceeding on the ground that the instrument has not been duly stamped.

S.37 Admission of improperly stamped instruments

       The 9696. Words "collecting Government" first subs, for the words "Governor General in Council" by the Government of India (Adaptation of Indian Laws) Order, 1937, then the words "State Government" subs, for the words "collecting Government" by the Adaptation of Laws Order, 1950. [State Government] may make rules providing that, where an instrument bears a stamp of sufficient amount but of improper description, it may, on payment of the duty with which the same is chargeable, be certified to be duly stamped, and any instrument so certified shall then be deemed to have been duly stamped as from the date of its execution.

S.38 Instruments impounded, how dealt with

       (1) When the person impounding an instrument under section 33 has by law or consent of parties authority to receive evidence and admits such instrument in evidence upon payment of a penalty as provided by section 35 or of duty as provided by section 37, he shall send to the Collector an authenticated copy of such instrument, together with a certificate in writing, stating the amount of duty and penalty levied in respect thereof, and shall send such amount to the Collector, or to such person as he may appoint in this behalf.
       
       (2) In every other case, the person so impounding an instrument shall send it in original to the Collector.

S.39 Collectors power to refund penalty paid under section 38, sub-section (1)

       (1) When a copy of an instrument is sent to the Collector under section 38, sub-section (1), he may, if he thinks fit, 9797. Words "upon application made to him in this behalf or, if no application is made, with the consent of the Chief Controlling Revenue-authority" om. by Act 4 of 1914. * * *
       
       (2) When such instrument has been impounded only because it has been written in contravention of section 13 or section 14, the Collector may refund the whole penalty so paid.

S.40 Collectors power to stamp instruments impounded

       (1) When the Collector impounds any instrument under section 33, or receives any instrument sent to him under section 38, sub-section (2), not being an instrument chargeable 9898. Words subs, for the words "with a duty of one anna or half an anna" by Act 19 of 1958. [with a duty not exceeding ten naye paise] only or a bill of exchange or promissory note, he shall adopt the following procedure:
       
       (a) if he is of opinion that such instrument is duly stamped or is not chargeable with duty, he shall certify by endorsement thereon that it is duly stamped, or that it is not so chargeable, as the case may be;
       (b) if he is of opinion that such instrument is chargeable with duty and is not duly stamped, he shall require the payment of the proper duty or the amount required to make up the same, togethe

S.41 Instruments unduly stamped by accident

       If any instrument chargeable with duty and not duly stamped, not being an instrument chargeable 11. Words subs, for the words "with a duty of one anna or half an anna" by Act 19 of 1958. [with a duty not exceeding ten naye paise] only or a bill of exchange or promissory note is produced by any person of his own motion before the Collector within one year from the date of its execution or first execution, and such person brings to the notice of the Collector the fact that such instrument is not duly stamped and offers to pay to the Collector the amount of the proper duty, or the amount required to make up the same, and the Collector is satisfied that the omission to duly stamp such instrument has been occasioned by accident, mistake or urgent necessity, he may, instead of proceeding under sections 33 and 40, receive such amount and proceed as next hereinafter prescribed.
       

S.42 Endorsement of instruments on which duty has been paid under sections 35, 40 or 41

       (1) When the duty and penalty (if any) leviable in respect of any instrument have been paid under section 35, section 40 or section 41, the person admitting such instrument in evidence or the Collector, as the case may be, shall certify by endorsement thereon that the proper duty or, as the case may be, the proper duty and penalty (stating the amount of each) have been levied in respect thereof and the name and residence of the person paying them.
       
       (2) Every instrument so endorsed shall thereupon be admissible in evidence, and may be registered and acted upon and authenticated as if it had been duly stamped, and shall be delivered on his application in this behalf to the person from whose possession it came into the hands of the officer impounding it, or as such person may direct:
       
 

S.43 Prosecution for offence against Stamp-law

       The taking of proceedings or the payment of a penalty under this Chapter in respect of any instrument shall not bar the prosecution of any person : .410 appears to have committed an offence against the Stamp-law in respect of such instrument:
       Provided that no such prosecution shall be instituted in the case of any instrument in respect of which such a penalty has been paid, unless it appears to the Collector that the offence was committed with an intention of evading payment of the proper duty.

S.44 Persons paying duty or penalty may recover same in certain cases

       (1) When any duty or penalty has been paid under section 35, section 37, section 40 or section 41, by any person in respect of an instrument, and, by agreement or under the provisions of section 29 or any other enactment in force at the time such instrument was executed, some other person was bound to bear the expense of providing the proper stamp for such instrument, the first mentioned person shall be entitled to recover from such other person the amount of the duty or penalty so paid.
       
       (2) For the purpose of such recovery, any certificate granted in respect of such instrument under this Act shall be conclusive evidence of the matters therein certified.
       
       (3) Such amount may, if the Court thinks, fit, be included in any order as to costs in any s

S.45 Power to Revenue-authority to refund penalty or excess duty in certain cases

       (1) Where any penalty is paid under section 35 or section 40, the Chief Controlling Revenue-authority may, upon application in writing made within one year from the date of the payment, refund such penalty wholly or in part.
       
       (2) Where, in the opinion of the Chief Controlling Revenue-authority, stamp-duty in excess of that which is legally chargeable has been charged and paid under section 35 or section 40, such authority may, upon application in writing made within three months of the order charging the same, refund the excess.

S.46 Non-liability for loss of instruments sent under section 38

       (1) If any instrument sent to the Collector under section 38, sub-section (2), is lost, destroyed or damaged during transmission, the person sending the same shall not be liable for such loss, destruction or damage.
       
       (2) When any instrument is about to be so sent, the person from whose possession it came into the hands of the person impounding the same may require a copy thereof to be made at the expense of such first-mentioned person and authenticated by the person impounding such instrument.
       

S.47 Power of payer to stamp bills and promissory notes received by him unstamped

       When any bill of exchange 22. Words subs, for the words "promissory note or cheque" by Act 5 of 1927. [or promissory note] chargeable 33. Words subs, for the words "with the duty of one anna" by Act 19 of 1958. [with a duty not exceeding ten naye paise] is presented for payment unstamped, the person to whom it is so presented may affix thereto the necessary adhesive stamp, and, upon cancelling the same in manner hereinbefore provided, may pay the sum payable upon such bill 44. Words subs, for the words "note or cheque" by Act 5 of 1927. [or note], and may charge the duty against the person who ought to have paid the same, or deduct it from the sum payable as aforesaid, and such bill 44. Words subs, for the words "note or cheque" by Act 5 of 1927. [or note] shall, so far as respects the duty, be deemed good and valid: Provided that nothing herein contained shall relieve any person from any penalty or proceeding to which he may

S.47(a) Instruments of conveyance, etc., undervalued, how to be dealt with

       Sec. 47A first ins. by W.B. Act 17 of 1990, then sees. 47A to 47C subs. for previous sec. 47A by W.B. Act 17 of 1998. Earlier sec. 47A was as under: "47A. Instruments of conveyance, etc., undervalued, how to be dealt with. (1) Where the registering officer appointed under the Registration Act, 1908, has, while registering any instrument of conveyance, exchange, gift, partition or settlement, reason to believe that the market value of the [Foot-note 5 continued at page 389)
       (1) Where the registering officer appointed under the Registration Act. 1908, has, while registering any instrument of
       
       (a) agreement or memorandum of an agreement relating to a sale or lease-cum-sale of immovable property.
       (b) conveyance,
      

S.47(b) Appeal

       (1) Any concerned person aggrieved by an order passed under sub-section (5), or sub-section (8), of section 47A determining the market value may, in the prescribed manner, prefer an appeal to such appellate authority as may be prescribed within sixty days from the date of receipt of such order or such further period as may be allowed by the said authority for cause shown to his satisfaction.
       
       (2) Subject to such rules or procedure as may be prescribed, the appellate authority shall dispose of any appeal preferred before him under subsection (1) in the prescribed manner.
       
       (3) Where the appellate authority modifies the amount of stamp duty determined under sub-section (5), or sub-section (8), of section 47A and modified amount of such stamp duty is

S.47(c) Suo motu revision by the Chief Controlling Revenue Authority

       (1) Subject to such rules as may be prescribed and for reasons to be recorded in writing, the Chief Controlling Revenue Authority may, on his own motion, pass an order revising any order passed by any authority under section 47A or section 47B.
       
       (2) No order under sub-section (1), which is likely to affect the person concerned adversely, shall be passed without giving such person a reasonable opportunity of being heard.
       
       (3) Any order passed by the Chief Controlling Revenue Authority under sub-section (1) shall be final and shall not be called in question in any Civil Court or before any other authority.
       

S.48 Recovery of duties and penalties

       All duties, penalties and other sums required to be paid under this Chapter may be recovared by the Collector by distress and sale of the moveable property of the person from whom the same are due, or by any other process for the time being in force for the recovery of arrears of land-revenue.
       

S.48(a) Validity of certificate or endorsement in respect of instruments for which higher rate of duty is payable in West Bengal

       Notwithstanding anything contained in this Act, no certificate or endorsement under this Act in respect of an instrument chargeable in [West Bengal] with a higher rate of duty under the Bengal Stamp (Amendment) Act, 1922, [or the Indian Stamp (Bengal Amendment) Act, 1935], shall be received in evidence or be in any was valid in respect of the payment of duty on such instrument or in respect of the chargeability of such instrument with duty, unless the duty chargeable under the Bengal Stamp (Amendment) Act, 1922, [or the Indian Stamp (Bengal Amendment) Act, 1935], has been paid on such instrument.

S.49 Allowance for spoiled stamps

       Subject to such rules as may be made by [the State Government] as to the evidence to be required, or the enquiry to be made, the Collector may, on application made within the period prescribed in section 50, and if he is satisfied as to the facts, make allowance for impressed stamps spoiled in the cases hereinafter mentioned, namely:
       (a) the stamp on any paper inadvertently and undesignedly spoiled, obliterated or by error in writing or any other means rendered unfit for the purpose intended before any instrument written thereon is executed by any person;
       
       (b) the stamp on any document which is written out wholly or in part, but which is not signed or executed by any party thereto;
       
       (c) in the case of

S.50 Application for relief under section 49 when to be made

       The application for relief under section 49 shall be made within the following periods, that is to say,
       (1) in the cases mentioned in clause (d) (5), within two months of the date of the instrument;
       
       (2) in the case of stamped paper on which no instrument has been executed by any of the parties thereto, within six months after the stamp has been spoiled;
       
       (3) in the case of a stamped paper in which an instrument has been executed by any of the parties thereto, within six months after the date of the instrument, or, if it is not dated, within six months after the execution thereof by the person by whom it was first or alone executed:
       
   &

S.51 Allowance in case of printed forms no longer required by Corporations

       The Chief Controlling Revenue-authority [or the Collector if empowered by the Chief Controlling Revenue-authority in this behalf] may, without limit of time, make allowance for stamped papers used for printed forms of instruments [by any banker or] by any incorporated company or other body corporate, if for any sufficient reason such forms have ceased to be required by the said [banker], company or body corporate:
       provided that such authority is satisfied that the duty in respect of such stamped papers has been duly paid.

S.52 Allowance for misused stamps

       (a) When any person has inadvertently used for an instrument chargeable with duty, a stamp of a description other than that prescribed for such instrument by the rules made under this Act, or a stamp of greater value than was necessary, or has inadvertently used any stamp for an instrument not chargeable with any duty; or
       
       (b) when any stamp used for an instrument has been inadvertently rendered useless under section 15, owing to such instrument having been written in contravention of the provisions of section 13; the Collector may, no application made within six months after the date of the instrument, or, if it is not dated, within six months after the execution thereof by the person by whom it was first or alone executed, and upon the instrument, if chargeable with duty, being re-stamped with the proper duty, cancel and allow as spoi

S.53 Allowance for spoiled or misused stamps how to be made

       In any case in which allowance is made for spoiled or misused stamps, the Collector may give in lieu thereof
       (a) other stamps of the same description and value; or
       
       (b) if required and he thinks fit, stamps of any other description to the same amount in value; or
       
       (c) at his discretion, the same value in money, deducting [ten naye paise] for each rupee or fraction of a rupee.
       

S.54 Allowance for stamps not required for use

       When any person is possessed of a stamp or stamps which have not been spoiled or rendered unfit or useless for the purpose intended, but for which he has no immediate use, the Collector shall repay to such person the value of such stamp or stamps in money, deducting [ten naye paise] for each rupee or portion of a rupee, upon such person delivering up the same to be cancelled, and proving to the Collector's satisfaction
       (a) that such stamp or stamps were purchased by such person with a bona fide intention to use them; and
       
       (b) that he has paid the full price thereof; and
       
       (c) that they were so purchased within the period of six months next preceding the date on which they were so delivered: Provided tha

S.54(a) Allowances for stamps in denominations of annas

       Not withstanding anything contained in section 54, when any person is possessed of a stamp or stamps in any denominations, other than in denominations of annas four or multiples thereof and such stamp or stamps has or have not been spoiled, the Collector shall repay to such person the value of such stamp or stamps in money calculated in accordance with the provisions of sub-section (2) of section 14 of the Indian Coinage Act, 1906, upon such person delivering up, within six months from the commencement of the Indian Stamp (Amendment) Act, 1958, such stamp or stamps to the Collector.
       

S.54(b) Allowances for Refugee Relief stamps

       Notwithstanding anything contained in section 54, when any person is possessed of stamps bearing the inscription "Refugee Relief (being stamps issued in pursuance of section 3A before its omission) and such stamps have not been spoiled, the Collector shall, upon such person delivering up, within six months from the commencement of the Refugee Relief Taxes (Abolition) Act, 1973, such stamps to the Collector, refund to such person the value of such stamps in money or give in lieu thereof other stamps of the same value:
       Provided that the State Government may, with a view to facilitating expeditious disposal of claims for such refunds, specify, in such manner as it deems fit, any other procedure which may also be followed for claiming such refunds.

S.55 Allowance on renewal of certain debentures

       When any duly stamped debenture is renewed by the issue of a new debenture in the same terms, the Collector shall, upon application made within one month, repay to the person issuing such debenture, the value of the stamp on the original or on the new debenture, whichever shall be less: Provided that the original debenture is produced before the Collector and cancelled by him in such manner as the [State Government] may direct.
       Explanation. A debenture shall be deemed to be renewed in the same terms within the meaning of this section notwithstanding the following changes:
       
       (a) the issue of two or more debentures in place of one original debenture, the total amount secured being the same;
       (b) the issue of one debenture in place of two or more orig

S.56 Control of, and statement of case to, Chief Controlling Revenue-authority

       (1) Tht powers exercisable by a Collector under [and under clause (a) of the first proviso to section 26] shall in all cases be subject to the control of the Chief Controlling Revenue-authority.
       
       (2) If any Collector, acting under section 31, section 40 or section 41, feels doubt as to the amount of duty with which any instrument is chargeable, he may draw up a statement of the case, and refer it, with his own opinion thereon, for the decision of the Chief Controlling Revenue-authority.
       
       (3) Such authority shall consider the case and send a copy of its decision to the Collector, who shall proceed to assess and charge the duty (if any) in conformity with such decision.

S.57 Statement of case by Chief Controlling Revenue-authority to High Court

       (1) The Chief Controlling Revenue-authority may state any case referred to it under section 56, sub-section (2), or otherwise coming to its notice, and refer such case, with its own opinion thereon,
       
       (a) if it arises in a State, to the High Court for that State;
       (b) if it arises in the Union territory of Delhi or Himachal Pradesh, to the High Court of Punjab;
       (c) if it arises in the Union territory of Manipur or Tripura, to the High Court of Assam;
       (d) if it arises in the Union territory of the Andaman and Nicobar Islands, to the High Court at Calcutta; and
       (e) if it arises in the Union territory of the Laccadive, Minicoy and Amindivi Islands, to the High Cou

S.58 Power of High Court, to call for further particulars as to case stated

       If the High Court * * * is not satisfied that the statements contained in the case are sufficient to enable it to determine the questions raised thereby, the Court may refer the case back to the Revenue-authority by which it was stated, to make such additions thereto or alterations therein as the Court may direct in that behalf.

S.59 Procedure in disposing of case stated

       (1) The High Court * * * upon the hearing of any such case, shall decide the questions raised thereby, and shall deliver its judgment thereon containing the grounds on which such decision is founded.
       
       (2) The Court shall send to the Revenue-authority by which the case was stated, a copy of such judgment under the seal of the Court and the signature of the Registrar; and the Revenue-authority shall, on receiving such copy, dispose of the case conformably to such judgment.

S.60 Statement of case by other Courts to High Court

       (1) If any Court, other than a Court mentioned in section 57, feels doubt as to the amount of duty to be paid in respect of any instrument under proviso (a) to section 35, the Judge may draw up a statement of the case and refer it, with his own opinion thereon, for the decision of the High Court * * * to which, if he were the Chief Controlling Revenue-authority, he would, under section 57, refer the same.
       
       (2) Such Court shall deal with the case as if it had been referred under section 57, and send a copy of its judgment under the seal of the Court and the signature of the Registrar to the Chief Controlling Revenue-authority and another like copy to the Judge making the reference, who shall, on receiving such copy, dispose of the case conformably to such judgment.
       
    

S.61 Revision of certain decisions of Courts regarding the sufficiency of stamps

       (1) When any Court in the exercise of its civil or revenue jurisdiction or any Criminal Court in any proceeding under Chapter XII or Chapter XXXVI of the Code of Criminal Procedure, 1898, makes any order admitting any instrument in evidence as duly stamped or as not requiring a stamp, or upon payment of duty and a penalty under section 35, the Court to which appeals lie from, or references are made by, such first- mentioned Court may, of its own motion or on the application of the Collector, take such order into consideration.
       
       (2) If such Court, after such consideration, is of opinion that such instrument should not have been admitted in evidence without the payment of duty and penalty under section 35, or without the payment of a higher duty and penalty than those paid, it may record a declaration to that effect, and determine the amo

S.62 Penalty for executing, etc., instrument not duly stamped

       (1) Any person
       
       (a) drawing, making, issuing, endorsing or transferring, or signing otherwise than as a witness, or presenting for acceptance or payment, or accepting, paying or receiving payment of, or in any manner negotiating, any bill of change [payable otherwise than on demand], * * * or promissory note without the same duly stamped; or
       (b) executing or signing otherwise than as a witness any other instrument chargeable with duty without the same being duly stamped; or
       (c) voting or attempting to vote under any proxy not duty stamped; shall for every such offence be punishable with fine which may extend to five hundred rupees:
       Provided that, when any penalty has been paid in respect of any instrum

S.63 Penalty for failure to cancel adhesive stamp

       Any person required by section 12 to cancel an adhesive stamp, and failing to cancel such stamp in manner prescribed by the that section, shall be punishable with fine which may extend to one hundred rupees.
       

S.64 Penalty for omission to comply with provisions of section 27

       Any person who, which intent to defraud the Government,
       (a) executes any instrument in which all the facts and circumstances required by section 27 to be set forth in such instrument are not fully and truly set forth; or
       
       (b) being employed or concerned in or about the preparation of any instrument, neglects or omits fully and truly to set forth therein all such facts and circumstances; or
       
       (c) does any other act calculated to deprive the Government of any duty or penalty under this Act; shall be punishable with fine which may extend to five thousand rupees.
       

S.64(a) Recovery of amount of deficit stamp duty

       (1) Where any person liable to pay duty under this Act is convicted of an offence under section 64 in respect of any instrument (not being an instrument specified in Entry 91 of List I in the Seventh Schedule to the Constitution of India), the Magistrate shall, in addition to the punishment which may be imposed for such offence, recover summarily and pay over to the Collector the amount of duty, if any, due under this Act from such person in respect of that instrument and the Collector shall thereupon certify by endorsement on the instrument that proper duty has been levied in respect thereof:
       
       Provided that if the person referred to in this sub-section has already paid any amount towards the duty payable under this Act in respect of the instrument in relation to which such person was convicted, the Magistrate shall recover only the di

S.65 Penalty for refusal to give receipt, and for devices to evade duty on receipts

       (a) being required under section 30 to give a receipt, refuses or neglects to give the same; or,
       
       (b) with intent to defraud the Government of any duty, upon a payment of money or delivery of property exceeding twenty rupees in amount or value, gives a receipt for an amount or value not exceeding twenty rupees, or separates or divides the money or property paid or delivered; shall be punishable with fine which may extend to one hundred rupees.

S.66 Penalty for not making out policy, or making one not duly stamped

       (a) receives, or takes credit for, any premium or consideration for any contract of insurance and does not, within one month after receiving, or taking credit for, such premium or consideration, make out and execute a duly stamped policy of such insurance; or
       
       (b) makes, executes or delivers out any policy which is not duly stamped, or pays or allows in account, or agrees to pay or allow in account, any money upon, or in respect of, any such policy; shall be punishable with fine which may extend to two hundred rupees.
       

S.67 Penalty for not drawing full number of bills or marine policies purporting to be in sets

       Any person drawing or executing a bill of exchange [payable otherwise than on demand] or a policy of marine insurance purporting to be drawn or executed in a set of two of more, and not at the same time drawing or executing on paper duly stamped the whole number of bills or policies of which such bill or policy purports the set to consist, shall be punishable with fine which may extend to one thousand rupees.

S.68 Penalty for post-dating bills, and for other devices to defraud the revenue

       (a) with intent to defraud the Government of duty, draws, makes or issues any bill of exchange or promissory note bearing a date subsequent to that on which such bill or note is actually drawn or made; or
       
       (b) knowing that such bill or note has been so post-dated, endorses, transfers, presents for acceptance or payment, or accepts, pays or receives payment of, such bill or note, or in any manner negotiates the same; or
       
       (c) with the like intent, practises or is concerned in any act, contrivance or device not specially provided for by this Act or any other law for the time being in force; shall be punishable with fine which may extend to one thousand rupees.

S.69 Penalty for breach of rule relating to sale of stamps and for unauthorised sale

       (a) Any person appointed to sell stamps who disobeys any rule made under section 74; and
       
       (b) any person not so appointed who sells or offers for sale any stamp (other than a [ten naye paise or five naye paise] adhesive stamp); shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both.
       

S.70 Institution and conduct of prosecutions

       (1) No prosecution in respect of any offence punishable under this Act or any Act hereby [the State Government] generally, or the Collector specially, authoerises in that behalf.
       
       (2) The Chief Controlling Revenue-authority, or any officer generally or specially authorised by it in this behalf, may stay any such prosecution or compound any such offence.
       
       (3) The amount of any such composition shall be recoverable in the manner
       
       provided by section 48.

S.71 Jurisdiction of Magistrates

       No Magistrate other than a Presidency Magistrate or a Magistrate whose powers are not less than those of a Magistrate of the second class, shall try any offence under this Act.

S.72 Place of trial

       Every such offence committed in respect of any instrument may be tried in any district or presidency-town in which such instrument is found as well as in any district or presidency-town in which such offence might be tried under the Code of Criminal Procedure for time being in force.

S.73 Books, etc., to be open to inspection

       Every public officer having in his custody any registers, books, records, papers, documents or proceedings, the inspection whereof may tend to secure any duty, or to prove or lead to the discovery of any fraud or omission in relation to any duty, shall at all reasonable times permit any person authorised in writing by the Collector to inspect for such purpose the registers, books, papers, documents and proceedings, and to take such notes and extracts as he may deem necessary, without fee or charge.

S.73(a) Collectors power to authorise officer to enter premises, inspect certain documents, and seize them, if necessary

       (1) The Collector may, where he has reason to believe that all or any of the instruments specified in Entry 91 of List 1 in the Seventh Schedule to the Constitution of India have not been charged at all or have been incorrectly charged with duty leviable under this Act, authorise in writing any officer to enter upon any premises where he has reason to believe that any registers, books, records, papers, documents or proceedings relating to or in connection with any such instrument are kept in such premises, and to inspect them, and to take such notes and extracts as such officer deems necessary, and, if necessary, to seize them and to impound them under section 33.
       
       (2) Every person having in his custody or maintaining such registers, books, records, papers, documents or proceedings shall, when so required by the officer authorised under

S.74 Powers to make rules relating to sale of stamps

       [The State Government] * * * may make rules for regulating
       (a) the supply and sale of stamps and stamped papers,
       
       (b) the persons by whom alone such sale is to be conducted, and
       
       (c) the duties and remuneration of such persons:
       
       Provided that such rules shall not restrict the sale of [ten naye paise or five naye paise] adhesive stamps.

S.75 Power to make rules generally to carry out Act

       The [State Government] may make rules to carry out generally the purposes of this Act, and may by such rules prescribe the fines, which shall in no case exceed five hundred rupees, to be incurred on breach thereof.

S.76 Publication of rules

       (1) All rules made under this Act shall be published in the Official Gazette.
       
       (2) All rules published as required by this section shall, upon such publication, have effect as if enacted by this Act.

S.76(a) Delegation of certain powers

       [46* * '* * The State Government, may by notification in the Official Gazette], delegate
       (a) all or any of the powers conferred on it by section 2(9), 33(3)(b), 70(1), 74 and 78 to the Chief Controlling Revenue-authority; and
       
       (b) all or any of the powers conferred on the Chief Controlling Revenue-authority by sections 45(1)(2), 56(1) and 70(2) to such subordinate Revenue-authority as may be specified in the notification.

S.77 Saving as to court-fees

       [Except for the provisions as to copies contained in section 6A] nothing in this Act contained shall be deemed to affect the duties chargeable under any enactment for the time being in force relating to court-fees.

S.77(a) Saving as to certain stamps

       All stamps in denominations of annas four or multiples thereof shall be deemed to be stamps of the value of twenty-five naye paise or, as the case may be, multiples thereof and hall, accordingly, be valid for all the purposes of this Act.

S.78 Act to be translated and sold cheaply

       Every [State Government] shall make provision for the sale of translations of this Act in the principal vernacular languages of the territories administered by it at a price not exceeding [twenty-five naye paise] per copy.

S.79 Repeal

       Rep. by Act 10 of 1914.

Legal Commentary on Section 79 of the Indian Stamp Act, 1899

Introduction

Section 79 of the Indian Stamp Act, 1899, pertains to the repeal of certain provisions within the Act, specifically addressing the legal status and removal of previous legal provisions. This section plays a crucial role in the legislative framework by updating or abolishing outdated or redundant provisions to ensure the Act's current relevance and clarity.

What does Section 79 Say

Section 79 states that certain provisions of the Indian Stamp Act, 1899, are repealed. Notably, it mentions the repeal of the section related to the "Agreement to mortgage" (Section 79), as substituted by the Indian Stamp (Amendment) Act, 1904. Essentially, it formalizes the removal or replacement of specific sections to streamline the law.

Essential Ingredients

• Repeal of specific provisions: The section explicitly mentions the repeal of particular sections, such as the "Agreement to mortgage."
• Legislative amendments: It reflects amendments made through subsequent legislative acts, such as the Indian Stamp (Amendment) Act, 1904.
• Formal legal process: The repeal is enacted through formal legislative procedures, indicating legislative intent to modify the original Act.

Scope of Section

• The scope is limited to the repeal of specific provisions within the Indian Stamp Act, 1899.
• It does not directly prescribe duties or penalties but ensures that outdated provisions are removed from the legal framework.
• The section applies to the entire jurisdiction of India, as per the Act's territorial extent.

Punishment for Section

• Since Section 79 pertains to repeal, it does not prescribe any punishment or penalty.
• The enforcement of penalties related to the Act's other provisions is unaffected by this section.

Legal Comments

• Repeal Clause - Section 79 functions as a repealing clause, removing outdated provisions to keep the law current [Source: ""].
• Legislative Intention - The section demonstrates legislative intent to update the law by repealing provisions like the "Agreement to mortgage" subsection [Source: ""].
• Amendment Reflection - It reflects amendments made through subsequent Acts, such as the Indian Stamp (Amendment) Act, 1904 [Source: ""].
• Legal Clarity - Repealing obsolete sections enhances legal clarity and prevents confusion regarding the current law [Source: ""].
• Scope Limitation - The section's scope is limited strictly to repeals and does not extend to other provisions or penalties [Source: ""].
• No Punitive Provisions - It does not contain any punitive clauses, as its purpose is legislative repeal, not enforcement [Source: ""].
• Impact on Instruments - The repeal of certain sections affects the legal treatment of instruments like agreements to mortgage, which are now governed by other provisions or laws [Source: ""].
• Legal Continuity - The section ensures the continuity of the law by removing sections that are no longer relevant or have been replaced [Source: ""].
• Administrative Effect - It assists administrative authorities in understanding the current legal landscape, avoiding reliance on repealed provisions [Source: ""].
• Historical Context - The section provides historical insight into the legislative evolution of stamp laws in India [Source: ""].
• Legal Stability - By repealing outdated provisions, Section 79 promotes legal stability and reduces ambiguities [Source: ""].
• Reference for Future Amendments - It serves as a reference point for future amendments and legislative updates [Source: ""].
• Legal Validity - The repeal under Section 79 is legally valid and binding, ensuring the law's integrity [Source: ""].
• Implementation Clarity - It clarifies which provisions are currently in force, aiding in legal and judicial interpretation [Source: ""].
• Legal Diligence - The section exemplifies legislative diligence in keeping the law up-to-date and relevant [Source: ""].

Note: Since the sources primarily focus on penalties, general provisions, and amendments, specific detailed commentary on Section 79's procedural or substantive nuances is limited to the information available.

Sch.1 Stamp-Duty on Instruments

       Stamp-Duty on Instruments
       
       (See section 3.)
       
       
       
       Description of Instrument.
        Proper Stamp-duty.
       
       1. Acknowledgement of a debt exceeding twenty rupees in amount or value, written or signed by, or on behalf of, a debtor in order to supply evidence of such debt in any book (other than a banker's pass-book) or on a separate piece of paper when such book or paper is left in the creditor's possession: provided that such acknowledgement does not contain any promise to pay the debt or any stipulation to pay interest or to deliver any

Legal Commentary on Indian Stamp Act, 1899 - Schedule 1

Introduction

The Indian Stamp Act, 1899, is a legislative framework that governs the imposition of stamp duty on various instruments executed in India. Schedule 1 of the Act outlines the specific instruments that are chargeable with stamp duty, providing a comprehensive list of transactions and the corresponding rates of duty applicable.

What does Section Says

Schedule 1 of the Indian Stamp Act specifies various instruments and the stamp duty applicable to each. It categorizes instruments into different articles, detailing the nature of the transaction and the corresponding duty to be paid.

Essential Ingredients

• Instrument Definition: The term "instrument" is defined under Section 2(14) of the Act, encompassing any document that creates, modifies, or extinguishes a right or liability.
• Chargeability: Each article in Schedule 1 specifies the conditions under which stamp duty is chargeable, including the nature of the transaction and the value involved.

Scope of Section

The scope of Schedule 1 is extensive, covering a wide range of transactions including:- Sale deeds- Gift deeds- Mortgages- Leases- Transfers of property- Agreements related to debts and securities

Punishment for Section

Failure to comply with the provisions of the Indian Stamp Act, including the payment of stamp duty, may result in penalties as specified in the Act. This includes fines for executing instruments not duly stamped.

Legal Comments

• Instrument Definition - The term "instrument" includes any document that creates, modifies, or extinguishes a right or liability, as defined in Section 2(14) of the Act. - [ "KOTAK MAHENDRA BANK LTD. VS STATE OF U. P. "]
• Chargeability of Debt Transfers - Instruments transferring debts along with underlying securities are chargeable under Article 62(c) of Schedule 1-B. - [ "KOTAK MAHENDRA BANK LTD. VS STATE OF U. P. "]
• Conveyance Definition - Conveyance includes every instrument by which property is transferred inter vivos, as per Section 2(10). -
• Sale Deed Duty - A sale deed of immovable property is chargeable with stamp duty under Article 20 of Schedule 1-A. - [ "Kottu Kanna Rao VS District Registrar of Assurances and Collector"]
• Surcharge Applicability - Instruments may also be subject to additional surcharges under local laws, such as Section 120 of the Andhra Pradesh Municipalities Act, 1965. - [ "Kottu Kanna Rao VS District Registrar of Assurances and Collector"]
• Valuation Rules - The U.P. Stamp (Valuation of Property) Rules, 1997, provide guidelines for determining the market value of properties for stamp duty purposes. - [ "JAGADGURU KRIPALU PARISHAT (S. D. DHAM) VS STATE OF U. P. "]
• Deficiency in Stamp Duty - If the stamp duty paid is insufficient, authorities may demand additional payment based on the assessed value of the property. - [ "JAGADGURU KRIPALU PARISHAT (S. D. DHAM) VS STATE OF U. P. "]
• Intangible Property - Debts are considered intangible property and their transfer is subject to stamp duty as per the relevant articles in Schedule 1. - [ "KOTAK MAHENDRA BANK LTD. VS STATE OF U. P. "]
• Legal Compliance - Compliance with the Indian Stamp Act is essential for the validity of the instrument; non-compliance may render the instrument inadmissible in court. -
• Penalty for Non-Compliance - Penalties for executing instruments not duly stamped can extend to fines, emphasizing the importance of adherence to the Act. -
• Market Value Determination - The method for determining the market value of properties for stamp duty purposes must be followed as per the prescribed rules. - [ "JAGADGURU KRIPALU PARISHAT (S. D. DHAM) VS STATE OF U. P. "]
• Multiple Instruments - If multiple instruments are used in a single transaction, the highest duty applicable among them will be charged. -
• Exemptions - Certain instruments may be exempt from stamp duty under specific conditions outlined in the Act. -
• Judicial Interpretation - Courts have interpreted various provisions of the Indian Stamp Act to clarify the applicability of stamp duty in specific cases. - [ "Chief Controlling Revenue Authority, Madras, Referring Officer VS Sundaram Finance (P) Ltd. , Madras"]
• Local Variations - Different states may have variations in the application of stamp duty, necessitating awareness of local laws. - [ "Kottu Kanna Rao VS District Registrar of Assurances and Collector"]
• Documentation Requirements - Proper documentation and adherence to the prescribed format are crucial for the execution of instruments under the Act. -
• Revenue Generation - The Act serves as a significant source of revenue for the state, highlighting its fiscal importance. -
• Public Policy - The provisions of the Indian Stamp Act reflect public policy aimed at regulating transactions and ensuring compliance. -
• Legal Framework - The Indian Stamp Act operates within a broader legal framework that includes various other laws governing property and contracts. -