B.N. Gunta vs Puli Gopal Reddy and Another

S.V. Maruthi, J.—The question involved in this revision is whether the Exs. B-13, B-15 and B-16 dated 8-10-1957, 17-1-1959 and 18-1-1959 for Rs. 695-80 Rs. 2,920/- and Rs. 3,000/- bearing anna stamp 2, anna stamps 4 and anna stamps 4 of Government of Hyderabad respectively are admissible in evidence.

The learned Judge held that these documents are not admissible in evidence as they are not duly stamped. In support of his finding, the learned Judge held that under Article 49(a)(iii) of the Schedule I of the Stamp Act, the duty payable on pronotes above Rs. 1000/- was 25 paise and since the duty paid on Exs. B-15 and B-16 was 4 annas and the duty paid on Ex.B-13 was 1 anna (sic. 2 annas), they were insufficiently stamped against which the present revision is filed.

Under similar circumstances, a Division Bench of this Court in CRP No. 613/64, dated 8-11-1968 held that the pronotes which were executed after the amendment of Indian Stamp Act by Indian Stamp (Amendment) Act 19 of 1958, dated 1-10-1958/ were required to be stamped by 25 paise or by a stamp in denomination of 4 annas. It was further held that "Section 77A prescribes the use of stamps in denomination of 4 annas in cases of promissory notes where 25 paise stamp is required under Article 49(a)(iii) because it is not possible to break a stamp in denomination of 4 annas into 4 (paise) of 1 anna each as total value of each would not be 25 paise, but as noted earlier is declared as equivalent to a stamp in denomination of 4 annas." It is also observed that "it is possible to use stamps of more value than what is required. For example, instead of 4 1 anna stamps, one can affix 5 1 anna stamps or 4 1 anna stamps and one 1/2 anna stamp or can affix more stamps in decimal series than 25 paise. In all such cases, the surplus would be treated as superfluous and since proper stamp duty would be deemed to have been paid, the documents do not suffer from infirmity of being not duly stamped. In no case, however, an instrument can be stamped with lesser value of stamps than what is required under law." The learned Judge also held:

"The suit promissory note bears four 1 anna stamps which cannot be treated as equivalent to stamp of 25 paise. Although adhesive stamps in any number can be used for a promissory note since the promissory note is not stamped with 25 paise or a stamp in denomination of 4 annas, the promissory note will not be considered as duly stamped."

In view of the above, the learned Judge is right in holding the two promissory notes namely Exs. B-15 and B-16 which were executed on 7-1-1959 and 18-1-1959 respectively i.e. subsequent to the Indian Stamp (Amendment) Act 19 of 1958, dated 1-10-1958 as inadmissible in evidence on account of the fact that they are not sufficiently stamped. Admittedly, these two promissory notes were affixed with four 1 anna stamps which is equivalent to less than 25 paise and, therefore, they are insufficiently stamped.

As regards Ex.B-13, which was executed on 8-10-1957, it was executed prior to the Amendment Act 19 of 1958 referred to above. Therefore, it is sufficiently stamped as it was stamped in accordance with law that was in force as on that date.

Accordingly, the revision is partly allowed and the judgment of the learned Judge is confirmed insofar as Exs. B-15 and B-16 and insofar as Ex.B-13 is concerned, the order is set aside.

Since the suit is of the year 1966, the learned Judge is directed to dispose it of within three months from the date of receipt of a copy of this order.