Chapter V ALLOWANCES FOR STAMPS IN CERTAIN CASES

Subject to such rules as may be made by the State Government as to evidence to be required, or the enquiry to be made, the 1[Deputy Commissioner]1 may, on application made within the period prescribed in section 48, and if he is satisfied as to the facts, make allowance for impressed stamps spoiled in the cases hereinafter mentioned, namely:

¹ Substituted by Act 29 of 1962 w.e.f. 1.10.1962.

1. (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;
2. (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;
3. (c) the stamp used for an instrument executed by any party thereto which,—

1. (1) has been afterwards found to be absolutely void in law from the beginning;
2. (2) has been afterwards found unfit, by reason of any error or mistake therein, for the purpose originally intended;
3. (3) by reason of the death of any person by whom it is necessary that it should be executed, without having executed the same, or of the refusal of any such person to execute the same, cannot be completed so as to effect the intended transaction in the form proposed;
4. (4) for want of the execution thereof by some material party, and his inability or refusal to sign the same, is in fact incomplete and insufficient for the purpose for which it was intended;
5. (5) by reason of the refusal of any person to act under the same, or to advance any money intended to be thereby secured, or by the refusal or non-acceptance of any office thereby granted, totally fails of the intended purpose;
6. (6) becomes useless in consequence of the transaction intended to be thereby effected, being effected by some other instrument between the same parties and bearing a stamp of not less value;
7. (7) is deficient in value and the transaction intended to be thereby effected has been effected by some other instrument between the same parties and bearing a stamp of not less value;
8. (8) is inadvertently and undesignedly spoiled, and in lieu whereof another instrument made between the same parties and for the same purpose is executed and duly stamped: Provided that, in the case of an executed instrument, no legal proceeding has been commenced in which the instrument could or would have been given or offered in evidence and that the instrument is given up to be cancelled. Explanation.— The certificate of the 1[Deputy Commissioner]1 under section 32, that the full duty with which an instrument is chargeable has been paid, is an impressed stamp within the meaning of this section.

¹ Substituted by Act 29 of 1962 w.e.f. 1.10.1962.

The application for relief under section 47 shall be made within the following periods, that is to say,

1. (1) in the cases mentioned in clause (c)(5), within 1[six months]1 of the date of the instrument;
2. (2) in the case of a stamped paper on which no instrument has been executed by any of the parties thereto, within 1[one year]1 after the stamp has been spoiled;
3. (3) in the case of a stamped paper in which an instrument has been executed by any of the parties thereto, within 1[one year]1 after the date of the instrument or, if it is not dated, within 1[one year]1 after execution thereof by the person by whom it was first or alone executed;
   • (a) when the spoiled instrument has been for sufficient reasons sent out of the 1[State of Karnataka]1 the application may be made within 2[one year]2 after it has been received back in the 1[State of Karnataka]1; 1. Adapted by the Karnataka Adaptations of Laws Order, 1973 w.e.f. 1.11.1973.
   • (b) when, from unavoidable circumstances, any instrument for which another instrument has been substituted, cannot be given up to be cancelled within the aforesaid period, the application may be made within 1[one year]1 after the date of execution of the substituted instrument.

¹ Substituted by Act 6 of 1999 w.e.f. 1.4.1999.

¹ Substituted by Act 6 of 1999 w.e.f. 1.4.1999.

¹ Substituted by Act 6 of 1999 w.e.f. 1.4.1999. Provided that,—

² Substituted by Act 6 of 1999 w.e.f. 1.4.1999.

¹ Substituted by Act 6 of 1999 w.e.f. 1.4.1999.

Controlling Revenue Authority 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.

(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

1. (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 1[Deputy Commissioner]1 may, on application made within 2[one year]2 after the date of the instrument, or, if it is not dated, within 2[one year]2 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 spoiled the stamp so misused or rendered useless.

¹ Substituted by Act 29 of 1962 w.e.f. 1.10.1962.

² Substituted by Act 6 of 1999 w.e.f. 1.4.1999.

In any case in which allowance is made for spoiled or misused stamps, the Deputy Commissioner may, after deducting twenty paise for each rupee or a fraction thereof, give in lieu thereof,- (a) other stamps of the same description ; or (b) if required and if he thinks fit, stamps of any, other description; or (c) at his discretion the value in money equal to the discounted value.]1 1. Substituted by Act 6 of 1999 w.e.f. 1.4.1999.

1. (a) other stamps of the same description ; or
2. (b) if required and if he thinks fit, stamps of any, other description; or
3. (c) at his discretion the value in money equal to the discounted value.]1

¹ Substituted by Act 6 of 1999 w.e.f. 1.4.1999.

1[(1)]1 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 3[Deputy Commissioner]3 shall repay to such person the value of such stamp or stamps in money, deducting 2[ten naye paise]2 for each rupee or portion of a rupee, upon such person delivering up the same to be cancelled, and proving to the 3[Deputy Commissioner‘s]3 satisfaction

¹ Renumbered by Act 6 of 1999 w.e.f. 1.4.1999.

² Substituted by Act 8 of 1958 w.e.f. 29.3.1958.

³ Substituted by Act 6 of 1999 w.e.f. 1.4.1999.

1. (a) that such stamp or stamps were purchased by such person with a bona fide intention to use them; and
2. (b) that he has paid the full price thereof; and
3. (c) that they were so purchased within the period of 1[one year]1 next preceding the date on which they were so delivered: Provided that, where the person is a licensed vendor of stamps the 1[Deputy Commissioner]1 may, if he thinks fit, make the repayment of the sum actually paid by the vendor without any such deduction as aforesaid. 1[(2) An appeal shall lie against the orders of the Deputy Commissioner within sixty days from the date of the order passed under this chapter to the Chief Controlling Revenue Authority.]1

¹ Substituted by Act 6 of 1999 w.e.f. 1.4.1999.

¹ Substituted by Act 29 of 1962 w.e.f. 1.10.1962.

¹ Inserted by Act 6 of 1999 w.e.f. 1.4.1999.

Notwithstanding anything in the preceding sections of this Chapter, the State Government, after consultation with the Chief Controlling Revenue Authority, if satisfied that it is just and equitable to grant relief in any case or class of cases,

1. (i) other than those to which any of the said sections is applicable; 3[XXX]3
2. (ii) 3[XXX]3 may by order direct the grant of such relief as may be specified in the order and the Deputy Commissioner shall dispose of the case or class of cases conformably to such order.]1 2[Provided that the provisions of this section shall not apply to cases where refunds are claimed for loss of stamps.]2 1[52-B. Invalidation of stamps.- Notwithstanding anything contained in Sections 47,48,49,50,51 and 52, any stamps, which have been purchased, but have not been used or in respect of which no allowance has been claimed as under the provisions of the Act and the period of six months from the date of purchase of such stamps has not elapsed, may be used before a period of six months from the date of purchase of stamps or delivered for claiming the allowance within the period allowed for claiming the same under the relevant provisions of the Act; but not beyond the period of six months from the date of commencement of the Karnataka Stamp (Amendment) Act, 2017 whichever is later and any stamps not so used or not so delivered within the period aforesaid shall be rendered invalid.]1

¹ Inserted by Act 29 of 19629 w.e.f. 1.10.1962.

² Inserted by Act 24 of 1999 w.e.f. 18.8.1999

³ Omitted by Act 17 of 2017 w.e.f. 01.04.2017.

¹ Inserted by Act 17 of 2017 w.e.f. 1.04.2017.