Chapter 1V INSTRUMENTS NOT DULY STAMPED

(1) 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. (2) For that purpose every such person shall examine every instrument so chargeable and so produced or coming before him, in order to ascertain whether it is stamped with a stamp of the value and description required by the law in force in the State when such instrument was executed or first executed: Provided that- (a) nothing herein contained shall be deemed to require any Magistrate or Judge of a Criminal Court to examine or impound, if he does not think fit so to do, any instrument coming before him in the course of any proceeding other than a proceeding under Chapter XII or Chapter XXXVI of the Code of Criminal Procedure, 1898; (b) in the case of a Judge of the High Court, the duty of examining and impounding any instrument under this section may be delegated to such officer as the Court appoints in this behalf. (3) For the purposes of this section, in cases of doubt, the Government may determine- (a) what offices shall be deemed to be public offices; and (b) who shall be deemed to be persons in charge of public offices. LETTER OF ALLOTMENT OF SHARES in any company or proposed company or in respect of any loan to be raised by any company or proposed company: Twenty naye paise.

No instrument chargeable with duty shall be admitted in evidence for any purpose by any person having by law or consent of parties authorised 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 with a duty of twelve naye paise or less than twelve naye paise 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 penalty of five rupees or, when ten times the amount of the proper duty or deficient portion thereof exceeds five rupees, of a sum equal to ten times such duty or portion; (b) any such instrument, when presented to a Registering Officer for registration, shall be registered, if the party agrees to pay the duty and penalty due thereon as decided by the Registering Officer and pays the same within seven days from the date of such decision; (c) where a contract or agreement of any kind is effected by correspondence consisting of two or more letters and any one of the letters bears the proper stamp, the contract or agreement shall be deemed to be duly stamped; (d) nothing herein contained shall prevent the admission of any instrument in evidence in any proceeding in a Criminal Court, other than a proceeding under Chapter XII or Chapter XXXVI of the Code of Criminal Procedure, 1898; (e) nothing herein contained shall prevent the admission of any instrument in any Court when such instrument has been executed by or on behalf of the Government, or where it bears the certificate of the Collector as provided by section 32 or any other provision of this Act. LETTER OF LICENCE, that is to say, any agreement between a debtor and his creditors that the latter shall for a specified term suspend their claims and allow the debtor to carry on business at his own discretion: Twenty-one rupees twenty-five naye paise.

Where an instrument has been admitted in evidence such admission shall not, except as provided in section 59, be called in question at any stage of the same suit or proceeding on the ground that the instrument has not been duly stamped. (a) If accompanied by articles of Association under the Companies Act, 1956 (Central Act 1 of 1956): Fifty rupees. (b) If not so accompanied: One hundred and twenty rupees.

Exemption Memorandum of any association not formed for profit and registered under the Companies Act, 1956 (Central Act 1 of 1956).

(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 or when he is a registering officer to register such instrument upon payment of a penalty as provided by section 34 or of duty as provided by section 36, 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. MORTGAGE OF A CROP, including any instruments evidencing an agreement to secure the repayment of a loan made upon any mortgage of a crop is or is not in existence at the time of the mortgage.- (a) When the loan is repayable not more than 3 months from the date of the instrument: for every sum secured not exceeding Rs. 200: Twenty naye paise. for every Rs. 200 or part thereof secured in excess of Rs. 200: Twenty naye paise. (b) When the loan is repayable more than three months but not more than 18 months from the date of the instrument:- for every sum secured not exceeding Rs. 100: Thirty-five naye paise. for every Rs. 100 or part thereof secured in excess of Rs. 100: Thirty-five naye paise.

(1) When a copy of an instrument is sent to the Collector under sub-section (1) of section 37, he may, if he thinks fit, refund the whole or any portion of the penalty in excess of ten rupees which has been paid in respect of such instrument. (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. NOTARIAL ACT, that is to say, any instrument, endorsement, note, attestation, certificate, or entry not being a Protest (No. 44) made or signed by a notary public in the execution of the duties of his office or by any other person lawfully acting as a notary public: Two rupees twenty-five naye paise.

(1) When the Collector impounds any instrument under section 33, or receives any instrument sent to him under sub-section (2) of section 37, not being an instrument chargeable with a duty of twelve naye paise or less, 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 together with a penalty of five rupees; or if he thinks fit, an amount not exceeding ten times the amount of the proper duty or of the deficient portion thereof whether such amount exceeds or falls short of five rupees: Provided that, when such instrument has been impounded only because it has been written in contravention of section 13 or section 14, the Collector may, if he thinks fit, remit the whole penalty prescribed by this section. (2) Every certificate under clause (a) of sub section (1) shall, for the purposes of this Act be conclusive evidence of the matters stated therein: (3) Where an instrument has been sent to the Collector under sub-section (2) of section 33, the Collector shall, when he has dealt with it as provided by this section, return it to the impounding officer. NOTE OR MEMORANDUM sent by a Broker or agent to his principal intimating the purchase or sale on account of such principal- (a) of any goods exceeding in value twenty rupees: Twenty-five naye paise. (b) of any stock or marketable security exceeding in value 20 rupees: Subject to a maximum of Rupees Twenty, twenty naye paise for every Rs. 10,000 or part thereof of the value of the stock or security.

If any instrument chargeable with duty and not duly stamped, not being an instrument chargeable with a duty of twelve naye paise or less 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 39, receive such amount and proceed as next hereinafter prescribed. Note of protest by the Master of a ship: Two rupees.

(1) When the duty and penalty, if any, leviable in respect of any instrument have been paid under section 34, section 39 or section 40, 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: Provided that- (a) no instrument which has 'been admitted in evidence upon payment of duty and a penalty under section 34 shall be so delivered before the expiration of one month from the date of such impounding, or if the Collector has certified that its further detention is necessary and has not cancelled such certificate; (b) nothing in this section shall affect order XIII, rule 9 of the First Schedule to the Code of Civil Procedure, 1906. Partition-instrument of [as defined by Section 2 (K)]: The same duty as a Bottomry Bond (No. 14) for the amount of the value of the separated share or shares of the property. N. B:-The largest share remaining after the property is partitioned (or if there are two or more shares of equal value and not smaller than any of the other shares, then one of such equal shares) shall be deemed to be that from which the other shares are separated. Provided always that- (a) when an instrument of partition containing an agreement to divide property in severalty is executed and partition is effected in pursuance of such agreement, the duty chargeable upon the instrument effecting such partition shall be reduced by the amount of duty paid in respect of the first instrument, but shall not be less than one rupee and twenty-five naye paise. (b) where land is held on Revenue Settlement for a period not exceeding thirty years and paying the full assessment, the value for the purpose of duty shall be calculated at twenty-five times the annual revenue. (c) where a final order for effecting a partition passed by any Revenue authority or any civil court, or an award by an arbitrator directing a partition is stamped with the stamp required for an instrument of partition, and an instrument of partition in pursuance of such order or award is subsequently executed, the duty on such instrument shall not exceed one rupee and twenty-five naye paise.

(1) When any duty or penalty has been paid under section 31, section 39 or section 40, by any person in respect of an instrument, and by agreement or under the provisions of section 30 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 suit or proceeding to which such persons are parties and in which such instrument has been tendered in evidence. If the Court does not include the amount in such order, no further proceedings for the recovery of the amount shall be maintainable POWER OF ATTORNEY [as defined by section 2(p)] not being a proxy- (a) When executed for the sole purpose of procuring the registration of one or more documents in relation to a single transaction or for admitting execution of one or more such documents: Seventy-five naye paise. (b) When authorising one person or more to act in a single transaction other than the case mentioned in clause (a): One rupee fifty naye paise. (c) When authorising not more than 5 persons to act jointly and severally in more than one transaction or generally: Ten rupees fifty naye paise. (d) When authorising more than 5 but not more than 10 persons to act jointly and severally in more than one transaction or generally: Twenty-two rupees fifty naye paise. (e) When given for consideration and authorising the attorney to sell any immovable property: The same duty as a Conveyance (No. 21), for the amount of the consideration. (f) In any other case: Two rupees twenty-five naye paise for each person authorised. Explanation: For the purposes of this article, more persons than one when belonging the same firm shall be deemed to be one person.

(1) Where any penalty is paid under section 34 or section 39, the Government or such other authority as may be specified by Government in this behalf 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 Government or such other authority specified under sub-section (1), stamp duty in excess of that which is legally chargeable has been charged and paid under section 24 or section 39, the Government or such authority may, upon application in writing made within three months of the order charging the same, refund the excess. PROTEST OF BILL OR NOTE, that is to say, any declaration in writing made by a Notary Public or other person lawfully acting as such attesting the dishonour of a bill of exchange or promissory note: Two rupees.

(1) If any instrument sent to the Collector under sub-section (2) of section 37 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. Protest by the Master of a Ship, that is to say, any declaration of particulars of her voyage drawn up by him with a view to the adjustment of losses or the calculation of averages and every declaration in writing made by him against the charterers or the consignees for not loading or unloading the ship, when such declaration is attested or certified by a Notary Public or other person lawfully acting as such: Two rupees.

All duties, penalties and other sums required to be paid under this Chapter may be recovered by the Collector by distress and sale of the movable 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. (a) If the consideration for which the property was mortgaged does not exceed Rs. 1,000: The same duty as a Conveyance (No. 21) for the amount such consideration as set forth in the reconveyance. (b) In any other case: Twenty-five rupees.

Subject to such rules as may be made by the 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 48, 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) the stamp used for an instrument executed by any party thereto which- (1) has been afterwards found to be absolutely void in law from the beginning; (2) has been afterwards found unfit, by reason of any error or mistake therein, for the purpose originally intended; (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) 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) 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) 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) 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) 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 Collector 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. RELEASE, that is to say, any instrument (not being such a release as is provided for by Section 24), whereby a person renounces a claim upon another person or against any specified property- (a) If the amount or value of the claim does not exceed Rs. 1,000: The same duty as a Bottomry Bond (No. 14) for such amount or value as set forth in the release. (b) In any other case: Twelve rupees fifty naye paise. RELEASE, that is to say, any instrument (not being such a release as is provided for by Section 24), whereby a person renounces a claim upon another person or against any specified property- (a) If the amount or value of the claim does not exceed Rs. 1,000: The same duty as a Bottomry Bond (No. 14) for such amount or value as set forth in the release. (b) in any other case: Twelve rupees fifty naye paise.

The Government or such other authority as may be specified in this behalf by Government 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 the Government or such authority is satisfied that the duty in respect of such stamped papers has been duly paid. SECURITY BOND OR MORTGAGE DEED, executed by way of security for the due execution of an office or to account for money or other property received by virtue thereof or executed by a surety to secure the due performance of a contract- (a) when the amount secured does not exceed Rs. 1,000: The same duty as a Bottomry Bond (No. 14) for the amount secured. (b) in any other case: Twelve rupees fifty naye paise. SECURITY BOND OR MORTGAGE DEED, executed by way of security for the due execution of an office or to account for money or other property received by virtue thereof or executed by a surety to secure the due performance of a contract- (a) when the amount secured does not exceed Rs. 1,000: The same duty as a Bottomry Bond (No. 14) for the amount secured. (b) in any other case: Twelve rupees fifty naye paise. Exemptions: bond or other instruments, when executed- (a) by any person for the purpose of guaranteeing that the local income derived from private subscriptions to a charitable dispensary or hospital, or any other object of public utility, shall not be less than a specified sum per mensem; (b) executed by persons taking advances from Government for agricultural purposes or by their sureties as security for the repayment of such advances; (c) executed by officers of Government or their sureties to secure the due execution of an office or the due accounting for money or other property received by virtue thereof.

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 six naya paise for each rupee or fraction of a rupee. SHARE WARRANTS to bearer issued under the Companies Act, 1956 (Central Act I of 1956): One and a half times the duty payable on a conveyance (No. 21) for a consideration equal to the nominal amount of the shares specified in the warrant. Exemptions: Share warrant when issued by a company in pursuance of section 114 of the Indian Companies Act, 1956, to have effect only upon payment, as composition for that duty to the Collector of Stamp revenue of- (a) one-and a-half per centum of the whole subscribed capital of the company; (b) if any company which has paid the said duty or composition in full, subsequently issues an addition to its subscribed capital one-and-a-half per centum of the additional capital so issued.

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 six naya 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 that, where the person is a licensed vendor of stamps, the Collector may, if he thinks fit, make the repayment of the sum actually paid by the vendor without any such deduction as aforesaid. SHIPPING-ORDER for or relating to the conveyance of goods on board of any vessel: Fifteen naye paise.