26.      Stamp where value of subject-matter s indeterminate. - Where the amount or value of the subject-matter of any instrument chargeable with ad valorem duty cannot be, or (in the case of an instrument executed before the commencement of this Act) could not have been, ascertained at the date of its execution or first execution, nothing shall be claimable under such instrument more than the highest amount or value for which, if stated in an instrument of the same description, the stamp actually used would, at the date of such execution, have been sufficient :

 

1[Provided that, in the case of the lease of a mine in which royalty or a share of the produce is received as the rent, or part of the rent, it shall be sufficient to have estimated such royalty or the value of such share, for the purpose of stamp-duty,-

 

(a) when the lease has been granted by or on behalf of [the Government], at such amount or value as the Collector may, having regard to all the circumstances of the case, have estimated as likely to be payable by way of royalty or share to 2[the Government], at such amount or value as the Collector may, having regard to all the circumstances of the case, have estimated as likely to be payable by way of royalty or share to 2[the Government] under the lease, or,

 

1Substituted for the first proviso by the Indian Stamp (Amendment) Act, 1904 (15 of 1904), section 4.

2Substituted for the word “Crown” by the Adaptation of Laws Order, 1950

 

           (b) when the lease has been granted by any other person, at twenty thousand rupees a year ;

 

and the whole amount of such royalty or share, whatever it may be, shall be claimable under such lease :]

 

Provided also, that where proceedings have been taken in respect of an instrument under section 31 or 41, the amount certified by the Collector shall be deemed to be the stamp actually used at the date of execution.

 

27.      Facts affecting duty to be set forth in instrument - (1) The consideration (if any) and all other facts and circumstances affecting the chargeability of any instrument with duty, or the amount of the duty with which it is chargeable, shall be fully and truly set forth therein.

 

Amendment of section 27 of Central Act 2 of 1899. Pb. Act No. 17 of 1994

 

2. In the Indian Stamp Act, 1899 (hereinafter referred to as the principal Act), in its application to the State of Punjab,-

(i) section 27 of the principal Act shall be re-numbered as sub-section (1) thereof, and after sub-section (1) as so re-numbered, the following sub-section shall be inserted, namely :-

“(2) In the case of instruments relating to immovable property chargeable with an ad valorem duty on the value of the property, and not on the value set forth in the instrument, the instrument shall fully and truly set forth, the annual land revenue in the case of revenue paying land, the annual rental or gross assets, if any, in the case of other immovable property, the local rates, municipal or other taxes, if any, to which such property may be subject, and any other particulars which may be prescribed by rules made under this Act .”

 

28.      Direction as to duty in case of certain conveyances - (1) Where any property has been contracted to be sold for one consideration for the whole, and is conveyed to the purchaser in separate parts by different instruments, the consideration shall be apportioned in such manner as the parties think fit, provided that a distinct consideration for each separate part is set forth in the conveyance relating thereto, and such conveyance shall be chargeable with ad valorem duty in respect of such distinct consideration.

           (2) Where property contracted to be purchased for one consideration for the whole by two or more persons jointly, or by any person for himself and others or wholly for others, is conveyed in parts by separate instruments to the persons by or for whom the same was purchased, for distinct parts of the consideration, the conveyance of each separate part shall be chargeable with ad valorem duty in respect of the distinct part of the consideration therein specified.

           (3) Where a person, having contracted for the purchase of any property but not having obtained a conveyance thereof contracts to sell the same to any other person and the property is in consequence conveyed immediately to the sub-purchaser, the conveyance shall be chargeable with ad valorem duty in respect of the consideration for the sale by the original purchaser to the sub-purchaser.

           (4) Where a person, having contracted for the purchase of any property but not having obtained a conveyance thereof, contracts to sell the whole, or any part thereof to any other person or persons, and the property is in consequence conveyed by the original seller to different persons in parts the conveyance of each part sold to a sub-purchaser shall be chargeable with ad valorem duty in respect only of the consideration paid by such sub-purchaser, without regard to the amount or value of the original consideration; and the conveyance of the residue (if any) of such property to the original purchaser shall be chargeable with ad valorem duty in respect only of the excess of the original consideration over the aggregate of the considerations paid by the sub-purchasers:

           (5) Where a sub-purchase takes an actual conveyance of the interest of the person immediately selling to him, which is chargeable with ad valorem duty in respect of the consideration paid by him and is duly stamped accordingly, any conveyance to be afterwards made to him of the same property by the original seller shall be chargeable with a duty equal to that which would be chargeable on a conveyance for the consideration obtained by such original seller, or, where such duty would exceed five rupees, with a duty of five rupees.

 

E.-Duty by whom payable.

 

29.      Duties by whom payable - In the absence of an agreement to the contrary, the expense of providing the proper stamps shall be borne,-

           (a) in the case of any instrument described in any of the following articles of Schedule 1[I-A], namely :-

           No. 2 (Administration Bond),

           2[No. 6 (Agreement relating to Deposit of Title deeds, Pawn or Pledge),]

 

           1Substituted for the figure ‘I’ by Punjab Act, 8 of 1922, section 13.

 

           2Substituted for the words and figures “No. 6 (Agreement to mortgage)” by the Indian Stamp (Amendment) Act, 1904 (15 of 1904), section 5.

           No. 13 (Bill of exchange),

           No. 15 (Bond),

           No. 16 (Bottomry Bond),

           No. 26 (Customs Bond),

           No. 27 (Debenture),

           No. 32 (Further charge),

           No. 34 (Indemnity-bond),

           No. 40 (Mortgage-deed),

           No. 49 (Promissory-note),

           No. 55 (Release) .

           No. 56 (Respondentia Bond),

           No. 57 (Security-bond or Mortgage-deed),

           No. 58 (Settlement),

           No. 62(a) (Transfer of shares in an incorporated company or other body corporate).

           No. 62(b) (Transfer of debentures being marketable securities whether the debenture is liable to duty or not, except debentures provided for by section 8).

           No. 62(c) (Transfer of any interest secured by a bond, mortgage-deed or policy of insurance),-

           By the person drawing, making or executing such instrument :

          

           1[(b) in the case of policy of insurance other than fire-insurance-by the person effecting the insurance ;

           1(bb) in the case of a policy of fire-insurance by the person issuing the policy :]

           (c ) in the case of a conveyance (including a re-conveyance of mortgaged property) by the grantee : in the case of a lease or agreement to lease-by the lessee or intended lessee :

in the case of a counterpart of lease-by the lessor :

1Clauses (b) and (bb) were substituted for the old clause (b) by the Indian Stamp (Amendment) Act, 1906 (5 of 1906), section 4.

in the case of an instrument of exchange-by the parties in equal shares :

(f) in the case of a certificate of sale-by the purchaser of the property to which such certificate relates : and,

(g) in the case of an instrument of partition-by the parties thereto in proportion to their respective shares in the whole property partitioned, or when the partition is made in execution of an order passed by a Revenue-authority or Civil Court or arbitrator, in such proportion as such authority, Court or arbitrator directs.

 

30.      Obligation to give receipt in certain cases - Any person receiving any money exceeding twenty rupees in amount, or any bill of exchange, cheque or promissory note for an amount exceeding twenty rupees, or receiving in satisfaction or part satisfaction of a debt any moveable property exceeding twenty rupees in value, shall, on demand by the person paying or delivering such money, bill, cheque, note or property, give a duly stamped receipt for the same.

1[Any person receiving or taking credit for any premium or consideration for any renewal of any contract of fire insurance, shall, within one month after receiving or taking credit for such premium or consideration, give a duly stamped receipt for the same.].

 

CHAPTER III

ADJUDICATION AS TO STAMPS.

 

31. Adjudication as to proper stamps  - (1) When any instrument, whether executed or not and whether previously stamped or not, is brought to the Collector, and the person bringing it applies to have the opinion of that officer as to the duty (if any) with which it is chargeable, and pays a fee of such amount (not exceeding five rupees and not less than 2[fifty naye paise] as the Collector may in each case direct, the Collector shall determine the duty (if any) with which, in his judgment, the instrument is chargeable.

 

1Added by the Indian Stamp (Amendment) Act,1906 (5 of 1906).

 

2Substituted by the Indian Stamp (Amendment) Act, 1958, section 3.

           (2) For this purpose the Collector may require to be furnished with an abstract of the instrument, and also with such affidavit or other evidence as he may deem necessary to prove that all the facts and circumstances affecting the chargeability of the instrument with duty, or the amount of the duty with which it is chargeable, are fully and truly set forth therein, and may refuse to proceed upon any such application until such abstract and evidence have been furnished accordingly :

           Provided that-

no evidence furnished in pursuance of this section shall be used against any person in any civil proceedings except in an inquiry as to the duty with which the instrument to which it relates is chargeable; and

every person by whom any such evidence is furnished shall, on payment of the full duty with which the instrument to which it relates is chargeable, be relieved from any penalty which he may have incurred under this Act by reason of the omission to state truly in such instrument any of the facts or circumstances aforesaid.

 

32.      Certificate Collector (1) When an instrument brought to the Collector under section 31 is, in his opinion, one of a description with duty, and-

(a)       the Collector determines that it is already fully stamped, or

(b)       the duty determined by the Collector under section 31, or such a sum as, with the duty already paid in respect of the instrument, is equal to the duty so determined, has been paid;

(c)       the Collector shall certify by endorsement on such instrument that the full duty (stating the amount) with which it is chargeable has been paid.

           (2) When such instrument is, in his opinion, not chargeable with duty, the Collector shall certify in manner aforesaid that such instrument is not so chargeable.

           (3) Any instrument upon which an endorsement has been made under this section, shall be deemed to be duly stamped or not chargeable with duty, as the case may be; and if chargeable with duty shall be receivable in evidence or otherwise, and may be acted upon and registered as if it had been originally duly stamped :

           Provided that nothing in this section shall authorize the Collector to endorse-

any instrument 1[other than an instrument chargeable with a duty under clause (bb) of the first proviso to section 3 as amended by the Indian Stamp (Punjab Amendment) Act, 1922], executed or first executed in 2[India] and brought to him after the expiration of one month from the date of its execution or first execution, as the case may be;

any instrument executed or first executed out of 3[India] and brought to him after the expiration of three months after it has been first received in 3[India];

any instrument chargeable 4[with a duty not exceeding ten naye paise] or any bill of exchange or promissory note, 1[or acknowledgement or delivery order], when brought to him, after the drawing or execution thereof, on paper not duly stamped, or

any instrument chargeable with duty under clause (bb) of the first proviso to section 3 as amended by the Indian Stamp (Punjab Amendment) Act, 1922, and brought to him after the expiration of three months from the date on which it is first received in 2[Punjab].]

1Inserted by Punjab Act 8, of 1922, section 14.

2Substituted by Parliament Act No. 43 of 1955, for the words ‘the States’ which were substituted for the words “the Provinces” by the Adaptation of Laws Order, 1950. The words “the Provinces” had been substituted for the words “British India” by the Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948, section 3(2).

3Substituted for the words “the States” by the Parliament Act No. 43 of 1955, section2.

4Substituted by the Indian Stamp (Amendment) Act, 1958 (19 of 1958); section 4

5Inserted by East Punjab Act 27 of 1949, section 4.

 

 

CHAPTER IV.

INSTRUMENTS NOT DULY STAMPED.

 

33.      Examination and impounding of instruments - (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 3[India] when such instrument was executed or first executed :

           Provided that-

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;

in the case of a Judge of a 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.

1Inserted by Punjab Act, VIII of 1922, section 14.

 

2Substituted for the word “East Punjab” by the Adaptation of Laws Order, 1950.

 

3Substituted for the words “the State” by the Parliament Act No. 43 of 1955, section2.

 

           (3) For the purposes of this section, in cases of doubt,-

(a)       the 1[State Government] may determine what offices shall be deemed to be public offices; and,

(b)       the 1[State Government]may determine who shall be deemed to be persons in charge of public offices.

 

34.      Special provision as to unstamped receipts- Where any receipt chargeable 2[with a duty not exceeding ten naye  paise] is tendered to, or produced before, any officer unstamped in the course of the audit of any public account; such officer may in his discretion, instead of impounding the instrument; require a duly stamped receipt to be substituted therefore.

 

35.      Instruments not duly stamped inadmissible in evidence etc. - No instrument chargeable with duty shall be admitted in evidence for any purpose by any person having by law or consent of parties authority 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-

any such instrument not being an instrument chargeable [with a duty not exceeding ten naye paise] only or a bill of exchange or promissory note, [or acknowledgement or delivery order], 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;

1Substituted for the words “Collecting Government” by the Adaptation of Laws Order, 1950, First Schedule.

 

2Substituted by the Indian Stamp (Amendment) Act, 1958 (19 of 1958), section 5 and 6.

3Inserted by East Punjab Act 27 of 1949, section 5.

where any person from whom a stamped receipt could have been demanded, has given an unstamped receipt and such receipt, it stamped, would be admissible in evidence against him then such receipt shall be admitted in evidence against him on payment of a penalty of one rupee by the person tendering it;

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;

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 :

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 1[Government], or where it bears the certificate of the Collector as provided by section 32 or any other provisions of this Act.

 

36.      Admission of instrument where not to be questioned - Where an instrument has been admitted in evidence, such admission shall not, except as provided in section 61, be called in question at any stage of the same suit or proceeding on the ground that the instrument has not been duly stamped.

 

37.      Admission improperly stamped instruments The 2[State Government] may make rules providing that, where an instrument bears a stamp of sufficient amount but of improper description, it may, on payment of the duty with which the same is chargeable, be certified to be duly stamped and any instrument so certified shall then be deemed to have been duly stamped as from the date of its execution.

1Substituted for the word “Crown” by the Adaptation of Laws Order, 1950.

2Substituted for the words “Collecting Government” by the Adaptation of Laws Order, 1950, First Schedule.

 

38.      Instruments impounded how dealt with. - (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 upon payment of a penalty as provided by section 35 or of duty as provided by section 37, 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.

 

39.      Collector’s power to refund penalty paid under section 38, sub-section (1). - (1) When a copy of an instrument is sent to the Collector under section 38, sub-section (1), he may, if he thinks fit, 1*   *         *         * refund any portion of the penalty in excess of five 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.

 

40.      Collector’s power to stamp instruments impounded. - (1) When the Collector impounds any instrument under section 33, or receives any instrument sent to him under section38, sub-section (2), not being an instrument chargeable 2[with a duty not exceeding ten naye paise] only or a bill of exchange or promissory note, 3[or acknowledgement or delivery order], 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 :

           1The words “upon application made to him in this behalf or, if no application is made with the consent of the Chief Controlling Revenue Authority” were omitted by Pt. I of the Schedule to the Decentralization Act, 1914, (IV f 1914).

2Substituted by Indian Stamp (Amendment) Act, 1958 (19 of 1958) section 6.

3Inserted by East Punjab Act 27 of 1949, section 7.

           (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 1[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 matter stated therein.

           (3) Where an instrument has been sent to the Collector under section 38, sub-section (2), the Collector shall, when he has dealt with it as provided by this section return it to the impounding officer.

 

41.      Instrument unduly stamped by accident - If any instrument chargeable with duty and not duly stamped, not being an instrument chargeable [with a duty not exceeding ten naye paise] only or a bill of exchange or promissory note,[or acknowledgement or delivery order], 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 section 33 and 40, receive such amount and proceed as next hereinafter prescribed.

1Inserted by the Indian Stamp (Amendment) Act, 1904 (15 of 1904), section 6.

2Substituted by Indian Stamp (Amendment) Act, 1958 (19 of 1958) ; section 6.

3Inserted by East Punjab Act 27 of 1949, section 7.

 

42.      Endorsement of instruments on which duty has been paid under section 35, 40 or 41. - (1) When the duty and penalty, (if any) leviable in respect of any instrument have been paid under section 35, section 40 or section 41, 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-

no instrument which has been admitted in evidence upon payment of duty and a penalty under section 35, 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.

           Nothing in this section shall affect the 1Code of Civil Procedure, section 114, clause 3.

 

43.      Prosecution of offence against Stamp-law - The taking of proceedings or the payment of a penalty under this Chapter in respect of any instrument shall not bar the prosecution of any person who appears to have committed an offence against the Stamp-law in respect of such instrument:

 

           1See now the Code of Civil Procedure, 1908, (V of 1908).

 

           Provided that no such prosecution shall be instituted in the case of any instrument in respect of which such a penalty has been paid, unless it appears to the Collector that the offence was committed with an intention of evading payment of the proper duty.

 

44.      Persons paying duty or penalty may recover same in certain cases - (1) When any duty or penalty has been paid under section 35, section 37, section 40 or section 41, by any person in respect of an instrument, and, by agreement or under the provisions of section 29 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.

 

45.      Power to Revenue authority to refund penalty or excess duty in certain cases - (1) Where any penalty is paid under section 35 or section 40, the 1Chief Controlling Revenue-authority 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 1Chief Controlling Revenue-authority, stamp-duty in excess of that which is legally chargeable has been charged and paid under section 35 or section 40, such authority may, upon application in writing made within three months of the order charging the same, refund the excess.

 

 46.     Non-liability for loss of instruments sent under section 38 - (1) If any instrument sent to the Collector under section 38, sub-section (2), is lost, destroyed or damaged during transmission, the person sending the same shall not be liable for such loss, destruction or damage.

 

           1For its definition, see the General Clauses Act, 1897, section3.

 

           (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.

 

47.      Power of payer to stamp bills, promissory notes and cheques received by him unstamped - When any bill of exchange, 1[or promissory note] chargeable with a duty not exceeding ten naye paise] is presented for payment unstamped, the person to whom it is so presented may affix thereto the necessary adhesive stamp, and, upon canceling the same in manner hereinbefore provided, may pay the sum payable upon such bill, 2[or note] and may charge the duty against the person who ought to have paid the same, or deduct it from the sum payable as aforesaid, and such bill 2[or note] shall, so far as respects duty, be deemed good and valid :

 

           Provided that nothing herein contained shall relieve any person from any penalty or proceeding to which he may be liable in relation to such bill 3[or note].

 

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