Chapter V ALLOWANCES FOR STAMPS IN CERTAIN CASES

Subject to such rules as may be made by the State Government as to the evidence to be required or the inquiry 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;

1. (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 ;
2. (c) the stamp used for an instrument executed by any party thereto which, (1) has been afterwards found ^1[by the party] to be absolutely void in law from the beginning ; ^2[(1A) has been afterwards found by the Court, to be absolutely void from the beginning under section 31 of the Specific Relief Act, 1963 ;]

1. (2) has been afterwards found unfit, by reason of any error or mistake therein for the purpose originally intended ;
2. (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;
3. (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 ;
4. (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;
5. (6) becomes useless in consequence of the transaction intended to be thereby effected by some other instrument between the same parties and bearing a stamp of not less value;
6. (7) is deficient in value and the transaction intended to be thereby effected had been effected by some other instrument between the same parties and bearing a stamp of not less value;
7. (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, ^3[except that falling under sub-clause (1A)], 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 ^4[to be cancelled, or has been already given up to the Court to be cancelled.]

In section 48 of the principal Act, in sub-section (1), for the proviso, the following proviso shall be substituted, namely :— “ Provided that, where an agreement to sale of immovable property on which stamp duty is paid under Article 25 of the SCHEDULE I, is registered under the provisions of the Registration Act, 1908 and thereafter such agreement is cancelled by a registered cancellation deed for whatsoever reasons before taking the possession of the property which is the subject matter of such agreement, within a period of five years from the date of execution of the agreement to sale, then the application for relief may be made within a period of six months from the date of registration of cancellation deed.”.

49. 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 instrument 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.

50. (1) 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. (2) 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 provisions of section 13; the Collector may, on application made within 5 [six months] after the date of the instrument, or, if it is not dated, within 6 [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 spoiled the stamp so misused or rendered useless.

7[51. In any case in which allowance is made for spoiled stamps under section 47, or misused stamps under section 50, or in respect of printed forms no longer required under section 49, the Collector may give, in lieu thereof, (a) the same value in money, deducting 7[therefrom such amount as may be prescribed by rules made in this behalf by the State Government] ; or

1. (b) if the applicant so requires, other stamps of the same description and value; or
2. (c) if the applicant so requires, stamps of any other description of the same amount in value: Provided that, in the cases covered by clauses (b) and (c) a stationery charge as may be prescribed by rules made by the State Government, shall also be recovered in respect of spoiled or misused stamp papers surrendered.]

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 ¹[therefrom such amount as may be prescribed by rules made in this behalf by the State Government] 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

1. (b) that he has paid the full price thereof ; and
2. (c) that they were so purchased within the period of ²[six months] next preceding the date on which they were so delivered :

In section 52A of the principal Act,— (a) in sub-section (1), for the words “one lakh” the words ‘five lakhs” shall be substituted;

Notwithstanding anything contained in sections 47, 50, 51 and 52,--

1. (a) Any stamps which have been purchased but have not been used or in respect of which no allowance has been claimed on or before the day immediately preceding the date of commencement of the Bombay Stamp (Amendment) Act, 1989 (hereinafter referred to as "the commencement date") and the period of six months from the date of purchase of such stamps has not elapsed before the commencement date, may be used before a period of six months from the date of purchase of such stamps is completed, or delivered for claiming the allowance under the relevant provision of this Act; and any stamps not so used or so delivered within the period aforesaid shall be rendered invalid.
2. (b) Any stamps which have been purchased on or after the commencement date but have not been used, or no allowance has been claimed in respect thereof, within a period of six months from the date of purchase thereof, shall be rendered invalid.]