Chapter VII Criminal Offences and Procedure

1. (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 exchange payable otherwise than on demand or promissory note without the same being 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 duly stamped; shall for every such offence be punishable with fine which may extend to five thousand rupees; Provided that, when any penalty has been paid in respect of any instrument under section 39, section 44 or section 71, the amount of such penalty shall be allowed in reduction of the fine, if any, subsequently imposed under this section in respect of the same instrument upon the person who paid such penalty.
2. (2) If a share-warrant is issued without being duly stamped, the company issuing the same, and also every person who, at the time when it is issued, is the managing director or secretary or other principal officer of the company shall be punishable with fine which may extend to five thousand rupees.

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

Any person who, with intent to defraud the Government,--

1. (a) executes any instrument in which all the facts and circumstances required by section 30 to be set forth in such instrument are not fully and truly set forth; or
2. (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
3. (c) does any other act calculated to deprive the Government of any duty or penalty under this Act; shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to twenty thousand rupees.

1. (1) Where any person liable to pay duty under this Act is convicted of an offence under section 75, in respect of any instrument (not being an instrument relatable to entry 91 of list I- Union List of the Seventh Schedule of the Constitution), the magistrate shall in addition to the punishment which may be imposed for such offence, recover summarily and pay 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 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 person was convicted, the magistrate shall recover only the difference in the amount of duty.
2. (2) The amount recoverable under sub-section (1) shall be recovered by the Magistrate, as if it were a fine imposed under the Code of Criminal Procedure, 1973 (Act No. 2 of 1974).

Any person who,-

1. (a) being required under section 33 to give a receipt, refuses or neglects to give the same; or
2. (b) with intent to defraud the government to any duty upon a payment of money or delivery of property exceeding five hundred rupees in amount or value, gives a receipt for an amount or value not exceeding five hundred rupees or separates or divides the money or property paid or delivered; shall be punishable with fine which may extend to one thousand rupees.

Any person who,-

1. (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 or such insurance; or
2. (b) makes, executes or delivers out any policy which is not duly stamped or pays or allows in account, or agrees to pays or allows in account, any money upon or in respect of, any such policy. shall be punishable with fine which may extend to two thousand rupees.

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 or 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.

Any person who,-

1. (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
2. (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
3. (c) with the like intent, practices 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 five thousand rupees.

Any person who commits a breach of the provisions of section 85 shall on conviction be punished,--

1. (i) for a first offence with fine which may extend to five hundred rupees;
2. (ii) for a second offence with fine which may extend to one thousand rupees, but which shall not be less than two hundred and
3. (iii) for a third and subsequent offence with imprisonment for a term which may extend to two years and with fine which may extend to two thousand rupees.

1. (a) Any person appointed to sell stamps who disobeys any rule made under section 86, and
2. (b) any person not so appointed who sells or offers for sale any stamp (other than a ten paise or five 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 thousand rupees, or with both.

1. (1) No prosecution in respect of any offence punishable under this Act or any Act hereby repealed shall be instituted without the sanction of the Collector or such other officer as the State Government generally, or the Collector specially authorises in that behalf.
2. (2) The State Government or any officer generally or specially authorised by it in this behalf, may stay any such prosecution or compound any such offence.
3. (3) The amount of any such composition shall be recoverable in the manner provided by section 56.

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