Stamp Act, 1899 Mains Notes

INDIAN STAMP ACT, 1899 FOR MAINS age |1
INDIAN STAMP ACT, 1899
The Act came into force on 1st July 1899. It deals with law relating to non-judicial
stamps. There are two types of Non-Judicial Stamps –
1. Impressed Stamp
2. Adhesive Stamp.
The Act deals with the instruments that require the stamp duty, the procedure to
be followed, and impounding of the instruments not duly stamped.
Sec 2(14) Instrument includes every document by which right or liability is

created, transferred, limited, extended, extinguished or recorded.
Note:- Cancellation of power of attorney is called instrument.
THE INSTRUMENTS THAT REQUIRE STAMP DUTY AND TIME OF STAMPING
According to Section 3 every instrument mentioned in the schedule (Schedule

instrument) executed in India on or after 1st July, 1899.
According to Section 17 every such instrument shall be stamped either before or

at the time of execution of the instrument.
According to Section 18 Every Schedule instrument executed by any person out of

India relating to the property situated in India and is received in India then such
instrument shall be stamped within 3 months when it is received in India.
According to Section 19 Every promissory note or Bill of Exchange drawn or made

out of India and which is received in India for its acceptance or for payment, then
such instrument shall be stamped before such instrument is presented for
acceptance or for payment.
USE OF ADHESIVE STAMP
According to Section 11 of the Act an Adhesive Stamp is used for the following
instruments.
1. Entry as an Advocate on the enrolment of High Court.

2. Transfer of share and indorsement of debentures.
3. For Notarial Acts (Notary)
4. In relation to bill of exchange or promissory note drawn or made out of India.
5. For any other instrument chargeable for stamp duty exceeding 25p. (generally
when impressed stamps are not available.)
What is the legal fate of an instrument not duly stamped? Whether it can be
admitted in evidence? State the Procedure. Whether an objection can be raised
once an instrument is admitted? (Digvijay Model Paper)
A) According to Section 2(11) of the Act instrument is said to be duly stamped –

when it is stamped for proper value in proper manner and cancelled properly.
Proper value means paying the stamp duty as provided in the schedule.
Proper manner means according to Section 13 of the Act in case of an impressed

stamp, the stamp should appear on the face of the instrument.
Properly cancelled means according to Section 12 of the Act Adhesive stamp may
be cancelled by writing his name or initial on or across the stamp.
In case of Impressed stamp, the stamp paper should contain the name of the
person for whom it is purchased and the instrument shall be executed only by
such person.
A Stamp paper is not transferable property, but it is heritable property.
According to Section 35 of the Act when an instrument is not duly stamped. It

shall not be admitted in evidence for any purpose and the same shall be
impounded.
However, such instrument may be admitted in evidence- on payment of

sufficient stamp duty and a penalty equal to 10 times to the proper stamp duty
or deficit amount.
According to the decision of the High Court in Narasimha Rao Vs. Sai Vishnu in
AIR 2006 SC (A.P)., when the instrument is not duly stamped it is not admissible
in evidence for the purpose of the proviso to Section 49 of the Registration Act.
However, such instrument can be admitted in evidence if the penalty as

specified under Section 35 of Indian Stamp Act is paid.
As per Section 36 of the Act, where an instrument has been admitted in evidence,
then such admissions shall not be called in question at any stage of the same
suit or proceeding on the ground that the instrument has not been duly stamped
except under Section 61 of the Indian stamp Act, 1899.
IMPOUNDING OF AN INSTRUMENT (SEC.33)
Impounding means seizure of the instrument or holding of an instrument or

capturing the instrument.
According to Section 33, an instrument not duly stamped can be impounded

when it is presented in relation to a legal transaction. Order 13 Rule 8 CPC also
provides impounding of an instrument.
An Instrument may be impounded:-
1. By every person who has authority to receive evidence by law or by an

agreement between the parties.
Ex: A Judge of Court, an Arbitrator, The Tribunal (or) Quasi-Judicial Authority.
2. Every person who is in charge of public office and before who such instrument
is produced in relation to his duty.
Ex:- A Collector, R.D.O, Civil Supplies Officer, Chief Engineer R&B Irrigation
Department etc..,
3. However a police officer cannot impound an instrument not duly stamped. A

magistrate or a judge of a Criminal Court cannot impound the instrument in
certain cases.
IMPOUNDED INSTRUMENTS HOW DEALT WITH (SEC.38)
When an instrument is impounded by public officer, he shall send the original

instrument to the Collector (Registrar)
When the instrument is impounded by a Judge and he has not admitted the
instrument in evidence he shall send original to the Collector.
When the instrument is impounded by a judge and is admitted in evidence on the

payment of penalty- now the Judge shall send to the collector:
a) A Certified copy of the instrument.

b) The amount collected as penalty
c) A statement to that extent.
The Collector is the competent authority under the Act to decide whether an
instrument requires stamp duty or not, whether the instrument is already duly
stamped or not, whether any portion of the penalty amount to be refunded or
the instrument shall be declared as inoperative etc., and he takes a decision
accordingly.

Stamp Act, 1899 Mains Notes

Uploaded by

Copyright:

Available Formats

Stamp Act, 1899 Mains Notes

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Stamp Act, 1899 Mains Notes

Uploaded by

Copyright:

Available Formats

INDIAN STAMP ACT, 1899 FOR MAINS age |1

INDIAN STAMP ACT, 1899

Sec 2(14) Instrument includes every document by which right or liability is

Note:- Cancellation of power of attorney is called instrument.

THE INSTRUMENTS THAT REQUIRE STAMP DUTY AND TIME OF STAMPING

According to Section 3 every instrument mentioned in the schedule (Schedule

According to Section 17 every such instrument shall be stamped either before or

According to Section 18 Every Schedule instrument executed by any person out of

According to Section 19 Every promissory note or Bill of Exchange drawn or made

USE OF ADHESIVE STAMP

1. Entry as an Advocate on the enrolment of High Court.

A) According to Section 2(11) of the Act instrument is said to be duly stamped –

Proper manner means according to Section 13 of the Act in case of an impressed

A Stamp paper is not transferable property, but it is heritable property.

According to Section 35 of the Act when an instrument is not duly stamped. It

However, such instrument may be admitted in evidence- on payment of

However, such instrument can be admitted in evidence if the penalty as

IMPOUNDING OF AN INSTRUMENT (SEC.33)

Impounding means seizure of the instrument or holding of an instrument or

According to Section 33, an instrument not duly stamped can be impounded

An Instrument may be impounded:-

1. By every person who has authority to receive evidence by law or by an

Ex: A Judge of Court, an Arbitrator, The Tribunal (or) Quasi-Judicial Authority.

3. However a police officer cannot impound an instrument not duly stamped. A

IMPOUNDED INSTRUMENTS HOW DEALT WITH (SEC.38)

When an instrument is impounded by public officer, he shall send the original

When the instrument is impounded by a judge and is admitted in evidence on the

a) A Certified copy of the instrument.

You might also like