The Kerala Stamp Act, 1959 Complete Act - Bare Act

1. Short title, extent and commencement.

2. Definitions.

3. Instruments chargeable with duty.

4. Several instruments used in single transactions of sale, mortgage or settlement.

5. Instruments relating to several distinct matters.

6. Instruments coming within several descriptions in Schedule.

7. Payment of higher duty in respect of certain instruments.

8. Bonds or other securities issued on a loans.

9. Power to reduce remit or compound duties.

10. Duties how to be paid.

11. Use of adhesive stamps.

12. Cancellation of adhesive stamps.

13. Instruments stamped with impressed stamps how to be written.

14. Only one instrument to be on same stamp.

15. Instruments written contrary to section 13 or 14 deemed unstamped.

16. Denoting duty.

17. Instruments executed in the State of Kerala.

18. Instruments executed out of India.

19. Payment of duty on certain instruments liable to increased duty in the State of Kerala.

20. Conversion of amount expressed in foreign currencies.

21. Stock and marketable securities how to be valued.

22. Effect of statement of rate of exchange or average price.

23. Instrument reserving interest.

24. Certain instruments connected with mortgages of marketable securities to be chargeable as agreements.

25. How transfer in consideration of debt, or subject to future payment etc, to be charged.

26. Valuation in case of annuity, etc

27. Stamp where value of subject matter is indeterminate.

28. Facts affecting duty to be set forth in instrument.

29. Direction as to duty in case of certain conveyances.

30. Duties by whom payable.

31. Adjudication as to proper stamp

32. Certificate by Collector.

33. Examination and impounding of instruments.

34. Instrument not duly stamped inadmissible in evidence, etc.

35. Admission of instrument where not to be questioned.

36. Admission of improperly stamped instruments.

37. Instruments impounded how dealt with.

38. Collector's power to refund penalty paid under sub-section (I) of section 37.

39. Collector's power to stamp instruments impounded.

40. Instruments unduly stamped by accident.

41. Endorsement of instruments on which duty has been paid under sections 34, 39 or 40.

42. Prosecution for offence against Stamp Law.

43. Persons paying duty or penalty may recover the same in certain cases.

44. Power of Government or other specified authority to refund penalty or excess duty in certain cases.

45. Non-liability for loss of instruments sent under section 37.

46. Recovery of duties and penalties.

47. Allowance for spoiled stamps.

48. Application for relief under section 47 when to be made.

49. Allowance in case of printed forms no longer required by Corporations.

50. Allowance for misused stamps

51. Allowance for spoiled or misused stamps how to be made.

52. Allowance for stamps not required for use.

53. Allowances for stamps in denominations of annas.

54. Control of and statement of case to, the Government or other authority specified by the Government.

55. Statement of case by the Government or other authority specified by the Government to High Court.

56. Power of High Court to call for further particulars as to case stated.

57. Procedure in disposing of case stated.

58. Statement of case by other Courts to High Court.

59. Revision of Certain decisions of Courts regarding the sufficiency of stamps.

60. Penalty for execution, etc., Instrument not duly stamped.

61. Penalties for failure to cancel adhesive stamp.

62. Penalty for omission to comply with provisions of section 28.

63. Penalty for devices to defraud the revenue.

64. Penalty for breach of rule relating to sale of stamps and for unauthorised sale.

65. Institution and conduct of prosecutions.

66. Jurisdictions of Magistrates.

67. Place of trial.

68. Books etc., to be open to inspection.

69. Power to make rules.

70. Saving as to Court Fees.

71. Saving as to certain stamps.

72. Application of the Indian Stamp Act, 1899.

73. Repeal and Savings.

WHEREAS it is expedient to consolidate and amend the law relating to stamps in the State of Kerala;

Be it enacted in the Tenth Year of the Republic of India as follows:-

(1) This Act may be called the Kerala Stamp Act, 1959.

(2) It extends to the whole of the State of Kerala.

(3) It shall come into force on such date as the Government may, by notification in the Gazette, appoint.

In this Act, unless the context otherwise requires,-

(a) "bond" includes-

(i) any instrument whereby a person obliges himself to pay money to another, on condition that the obligations shall be void if a specified act is performed or is not performed as the case may be ;

(ii) any instrument attested by a witness and not payable to order or bearer, whereby a person obliges himself to pay money to another ; and

(iii) any instruments so attested, whereby a person obliges himself to deliver grain or other agriculture produce to another ;

(b) "chargeable" means, as applied to an instrument executed or first executed after the commencement of this Act, chargeable under this Act, and as applied to any other instrument chargeable under the law in force in the territories of the State of Kerala when, such instruments was executed, or, where several persons executed the instrument at different times, first executed ;

(c) "Collector" means the Chief Officer in charge of the Revenue Administration of a district; and includes any other officer whom the Government may, by notification in the Gazette, appoint in this behalf ;

(d) "Conveyance" includes a conveyance on sale and every instrument by which property, whether moveable, or immovable is transferred metros and which is not otherwise specifically provided for the Schedule ;

(e) "duly stamped" as applied to an instrument means that the instruments bears an adhesive or impressed stamps of not less than the proper amount and that such stamp has been affixed or used in accordance with the law for the time being in force in the territories of the State of Kerala ;

(f) "executed" and "execution" used with reference to instruments, mean "signed" and "signature" ;

(g) "Government security" means a Government security as defined in the Public Debt Act, 1944 (Central Act 18 of 1944) ;

(h) "impressed stamp" includes-

(i) labels affixed and impressed by the proper officer; and

(ii) stamps embossed or engraved on stamped paper ;

(i) "India" means the territory of India excluding the State of Jammu and Kashmir ;

(j) "instrument" includes every document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded but does not include a bill of exchange promissory note bill of lading, letter of credit, policy of insurance, transfer of share, debenture, proxy and receipt ;

(k) "instrument of partition" means any instrument whereby co-owners of any property divide or agree to divide such property in severalty, and includes also a final order for effecting a partition passed by any Revenue Authority or any Civil Court and an award by an arbitrator directing a partition ;

(l) "lease" means a lease of immovable property, and includes also-

(i) Marayapattom ;

(ii) Kanapattom ;

(iii) an agreement or other undertaking in writing not being a counterpart of a lease, to cultivate, occupy, or pay or deliver rent for immovable property ;

(iv) an agreement or other undertaking in writing, executed by the renters of abkari and opium farms ;

(v) any instrument by which tolls of any description are let ;

(vi) any writing on an application for a lease intended to signify that the application is granted; and

(vii) a patta.

(m) "marketable security" means a security of such a description as to be capable of being sold in any stock market in India ;

(n) "mortgage deed" include every instrument whereby, for the purpose of securing money advanced, or to be advanced, by way of loan, or an existing or future debt, or the performance of an engagement, one person transfers, or craters, to or in favour of another, a right over or in respect of specified property ;

(o) "paper" includes vellum, parchment or any other material on which an instrument may be written ;

(p) "power-of-attorney" includes any instrument (not chargeable with a fee under the law relating to Court fees for the time being in force) empowering a specified person to act for and in the name of the person executing it ;

(q) "settlement" means any non-testamentary disposition in writing, of movable or immovable property made-

(i) in consideration of marriage,

(ii) for the purpose of distributing property of the settler among his family or those for whom he desires to provide, or for the purpose of providing for some person dependent on him, or

(iii) for any religious or chartable purpose ;

and includes an agreement in writing to make such a disposition, (and where any such disposition has not been made writing, any instrument recording whether by way of declaration, of trust or otherwise, the terms of any such disposition);

(r) "vessel" means anything made for the conveyance, by water, of human beings of property.

Subject to the provisions of this Act and the exemptions contained in the Schedule, the following instruments shall be chargeable with duty of the amount indicated in that Schedule as the proper duty therefore, respectively, that is to say-

(a) every instrument mentioned in the Schedule which, not having been previously executed by any person, is executed in the territories of the State of Kerala on or after the commencement of this Act; and

(b) every instrument mentioned in that Schedule which, not having been previously executed by any person, in executed out of the State of Kerala on or after that day, relates to ay property situate, or to any matter or thing done or to be done, in the territories of the State of Kerala and is received in the territories of the State of Kerala :

Provided that no duly shall be chargeable in respect of-

(1) any instrument, executed by, or on behalf, of or in favour of, the Central Government or this or any other State Government, in cases where, but for this exemption, the Central Government or the State Government, would be liable to pay the duty chargeable in respect of such instrument ;

(2) any instruments for sale, transfer or other disposition either absolutely or by way of mortgage or otherwise of any ship or vessel or any part, interest, share or property of or in any ship or vessel.

(1) Where, in the case of any sale, mortgage or settlement, several instruments are employed for completing the transaction, the principal instrument only shall be chargeable with the duty prescribed in the Schedule for the conveyance, mortgage, or settlement, and each of the other instruments shall be chargeable with a duty of two rupees instead of the duty, if any, prescribed for it in the Schedule.

(2) The parties may determine for themselves which of the instruments so employed shall, for the purpose of sub section (1), be deemed to be the principal instrument :

Provided that the duty chargeable on the instrument so determined shall be the highest duty which would be chargeable in respect of any of the said instruments employed.

Any instrument comprising or relating to several distinct matters shall be chargeable with the aggregate amount of the duties with which separate instrument, each comprising or relating to one of such matters, would be chargeable under this Act.

Subject to the provisions of the last preceding section, an instrument so framed as to come within two more of the descriptions in the Schedule shall, where the duties chargeable thereunder are different, be chargeable only with the highest of such duties :

Provided that nothing contained in this Act shall render chargeable with duty exceeding two rupees a counter-part or duplicate of any instrument chargeable with duty and in respect of which the proper duty has been paid.

(1) Notwithstanding anything contained in sections 4 or 6 or in any other enactment, unless it is proved that the duty chargeable under his Act has been paid-

(a) on the principal or original instruments, as the case may be, or

(b) in accordance with the provisions of this section, the duty chargeable on an instrument of sale, mortgage or settlement, other than a principal instrument or on a counterpart, duplicate or copy of any instruments, shall, if the principal or original instrument would, when received in the State, have been chargeable under this Act, with a higher rate of duty, be the duly with which the principal or original instrument would have been chargeable under section 19.

(2) Notwithstanding anything contained in any enactment for the time being in force, no instrument, counterpart, duplicate or copy chargeable with duty under this section shall be received in evidence unless the duty chargeable under this section has been paid thereon:

Provided that any Court before which any such instrument, duplicate or copy is produced may permit the duty chargeable under this section to be paid thereon and may then receive it in evidence.

(1) Notwithstanding anything contained in this Act, any local authority raising a loan under the provisions of any law for the time being in force, by the issue of bonds or other securities other than debentures, shall, in respect of such loan, be chargeable with a duty of one per centum on the total amount of the bonds, or other securities issued by it, and such bonds or other securities need not be stamped and shall not be chargeable with any further duty on renewal, consolidation, sub-division or otherwise.

(2) The provisions of sub section (1) exempting certain bonds, or other securities from being stamped and form being chargeable with certain further duty shall apply to the bonds or other securities other than debentures of all outstanding loans of the kind mentioned therein, and all such bonds or other securities shall be valid, whether the same are stamped or not.

(3) In the case of willful neglect to pay the duty required by this section, the local authority shall be liable to forfeit to the Government a sum equal to ten per centum upon the amount of duty payable, and a like penalty for every month after the first month during which the neglect continues.

(1) The Government may, by order published in the Gazette.

(a) reduce or rent, whether prospectively, or retrospectively, in the whole or any part of the State of Kerala, if in the opinion of the Government it is necessary in public interest so to do, the duties with which any particular class of instruments, or any of the instruments belonging to such class, or any instruments when executed by or in favour of any particular class or persons, or by or in favour of any members of such class, are chargeable; and

(b) provide for the composition or consolidation of duties in the case of issues by any incorporated company or other body corporate of bonds or other marketable securities other than debentures.

(2) Every rule or order published under clause (a) of sub-section (1), shall be laid, as soon as may be after it is published, before the Legislative Assembly.

(1) Except as otherwise expressly provided in this Act, all duties with which any instruments are chargeable shall be paid, and such payment shall be indicated on such instruments, by means of stamps-

(a) according to the provisions herein contained,; or

(b) when no such provisions is applicable thereto, as the Government may by rules direct.

(2) The rules made under sub-section (1) may, among other matters, regulate,-

(a) in the case of each kind of instrument-the description of stamps which may be used;

(b) in the case of instruments stamped with impressed stamps-the number of stamps which may be used.

The following instruments may be stamped with adhesive stamps, namely:-

(a) instruments chargeable with the duty of twelve naye paise and less;

(b) entry as an advocate on the roll of the High Court;

(c) notaries acts;

(d) instruments as the Government may, by notification in the Gazette, specify

(1) (a) Whoever affixes any adhesive stamps to any instrument chargeable with duty which has been executed by any person shall, when affixing such stamp, cancel the same so that it cannot be used again; and

(b) Whoever executes any instrument on any paper bearing an adhesive stamp shall, at the time of execution unless such stamp has been already canceled in manner aforesaid, cancel the same so that it cannot be used again.

(2) Any instrument bearing an adhesive stamp which has not been cancelled so that it cannot be used again shall, so far as such stamp is concerned, be deemed to be unstamped.

(3) The person required by sub-section (1) to cancel an adhesive stamp may cancel it by writing on or a cross the stamp his name or initials or the name or initials of his firm with the true date of his so writing or in any other effectual manner.

Every instrument written upon paper stamped with an impressed stamp shall be written in such manner that the stamp may appear on the face of the instrument and cannot be used for or applied to any other instrument.

No second instrument chargeable with duty shall be written upon a piece of stamped paper upon which an instrument chargeable with duty has already been written:

Provided that nothing in this sections hall prevent any endorsement which is duly stamped or is not chargeable with duty being made upon any instrument for the purpose of transferring any right created or evidenced thereby, or of acknowledging the receipt of any money or goods the payment or delivery of which is secured thereby.

Every instrument written in contravention of section 13 or section 14 shall be deemed to be unstamped.

Where the duty with which an instrument is chargeable, or its exemption from duty depends in any manner upon the duty actually paid in respect of another instrument, the payment of such last mentioned duty shall, if application is made in writing to the Collector or the Registering Officer for that purpose, and on production of both the instruments, be denoted upon such first mentioned instrument, by endorsement under the hand of the Collector of the Registering Officer or in such other manner as the Government may be rules prescribe.

All instruments chargeable with duty and executed by any person in the State of Kerala shall be stamped before or at the time execution.

(1) Every instrument chargeable with duty executed only out of India may be stamped within three months after it has been first received in the State of Kerala.

(2) Where any such instrument cannot, with reference to the description of stamp prescribed therefor, be duly stamped by a private person, it may be taken within the said period of three months to the Collector who shall stamp the same, in such manner as the Government may by rules prescribed, with a stamp of such value as the person so taking such instrument may require and pay for.

Where any instrument of the nature described in any article in the Schedule and relating to any property situate or to any matter or thing done or to be done in the State of Kerala is executed out of the said State and subsequently received in the said State-

(a) the amount of duty chargeable on such instrument shall be the amount of duty chargeable under the Schedule on a document of the like description executed in the State of Kerala less the amount of duty, if any, already paid on such instrument in any other State in India.

(b) and in addition to the stamps, if any, already affixed thereto, such instrument shall be stamped with the stamps necessary for the payment of the duty chargeable on it under clause (a) of this section, in the same manner and the same time and any by the same persons as though such instruments were an instrument received in the State of Kerala for the first time at the time when it became chargeable with the higher duty, and

(c) the provisions contained in clause (b) of the proviso to sub-section (3) of section 32 shall apply to such instrument as if such were an instrument executed or first executed out of India and first received in the State of Kerala when it became chargeable to the higher duty aforesaid, but the provision contained in clause (a) of the said proviso shall not apply thereto

(1) Where an instrument is chargeable with ad-valorem duty in respect of any money expressed in any currency other than that of India, such, duty, shall be calculated on the value of such money in the currency of India according to the current rate of exchange on the day of the date of the instrument.

(2) The rate of exchange prescribed by the Central Government under sub-section (2) of section 20 of the India Stamp Act, 1889 (Central Act 11 of 1889) shall be deemed to be the current rate of exchange for the conversion of any foreign currency for the purposes of calculating the duty under sub section (1).

Where an instrument is chargeable with ad valorem duty in respect of any stock or of any marketable or other security, such duty shall be calculated on the value of such stock or security according to the average price or the value thereof on the day of date of the instrument.

Where an instrument contains a statement of current rate of exchange, or average price, as the case may require, and is stamped in accordance with such statement, is shall, so far as regards the subject matter of such statement, be presumed, until the contrary is proved, to be duly stamped.

Where interest is ex-pressly made payable by the terms of an instrument, such instrument shall not be chargeable with duty higher than that with which it would have been chargeable had no mention of interest been made therein.

(1) Where an instrument-

(a) is given upon the occasion of the deposit of any marketable security by way of security for money advanced or to be advanced by way of loan, or for an existing or future debt; or

(b) makes redeemable or qualifies a duly stamped transfer, intended as a security, of any marketable security.

it shall be chargeable with duty as if it were an agreement or memorandum of an agreement chargeable with duty under Article 5 of the Schedule.

(2) A release or discharge of any such instrument shall be chargeable with the like duty.

Where any property is transferred to ay person in consideration, wholly or in party, of any debt due to him or subject either certainly or contingently to the payment or transfer of any money or stock, whether being or constituting a charge or in cumbrance upon the property or not such debt, money, or stock is to be deemed the whole or part, as the case may be, of the consideration in respect whereof the transfer is chargeable with ad valorem duty:

Provided that nothing in this section shall apply to any such certificate of sale as in mentioned in Article 16 of the Schedule.

In the case of a sale of property subject to a mortgage or other incumbrance any unpaid mortgage money or money charged, together with interest, if any, due on the same, shall be deemed to be part of the consideration for the sale:

Provided that, where property subject to a mortgage is transferred to the mortgage, he shall be entitled to deduct from the duty payable on the transfer the amount of any duty already paid in respect of the mortgage.

(1) A owes B Rs. 1,000. A sells a property to B the consideration being Rs. 500 and the release of the previous debt of Rs.1,000. Stamp duty is payable on Rs.1,500.

(2) A sells a property to B for Rs 500 which is subject to a mortgage to C for Rs 1,000 and unpaid interest Rs. 200. Stamp duty is payable on Rs. 1,700.

(3) A mortgages a house of the value of Rs. 10,000 to B for Rs. 5000. B afterwards buys the house from A Stamp duty is payable on Rs. 10,000 less the mount of stamp-duty already paid for the mortgage.

Where an instrument is executed to secure the payment of annuity or other sum payable periodically, or where the consideration for a conveyance is an annuity or other sum payable periodically, the amount secured by such instrument or the consideration for such conveyance, as the case may be, shall, for the purposes of this Act be deemed to be,-

(a) Where the sum in payable for a definite period so that the total amount to be paid can be previously ascertained- such total amount.

(b) Where the sum is payable in perpetuity or for an indefinite time not terminable with any life in being at the date of such instrument or conveyance-the total amount which according to the terms of such instrument or conveyance will or may be payable during the period of twenty years calculated from the date on which the first payment becomes due; and

(c) Where the sum is payable for an indefinite time terminable with any life in being at the date of such instrument or conveyance-the maximum amount which will or may be payable as aforesaid during the period of twelve years calculated from the date on which the first payment becomes due.

Where the amount or value of the subject matter of any instrument chargeable with ad-valorem duty cannot be or 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:

Provided that, in the case of the lease of mine in which royalty or a share of the produce is received as the rent or the 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 the Government under the lease, or

(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 any instrument under section 31 or 39 the amount certified by the Collector shall be deemed to be the stamp actually used at the date of execution.

The Consideration, if any, and all other facts and circumstance affecting he 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.

(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 purchased 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 is 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:

Provided that the duty on such last mentioned conveyance shall in no case be less than two rupees.

(5) Where a sub-purchaser 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, and 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 ten rupees, with a duty of ten rupees.

In the absence of an agreement to the contrary, the expense of providing the proper stamp shall be borne,-

(a) in the case of any instrument described in any of the following Articles of the Schedule, namely:-

No. 2 (Administration Bond),

No. 6 (Agreement relating to deposit of title deeds, pawn or pledge),

No.13 (Bond),

No.14 (Bottomry Bond),

No.24 (Customs Bond),

No.29 (Further Charge),

No.31 (Indemnity Bond),

No.36 (Mortgage deed),

No.47 (Release),

No.48 (Respondentia Bond),

No.49 (Security Bond or Mortgage deed),

No. 50 (Settlement),

No.54 (c). (Transfer of any interest secured by a bond or mortgage deed),

by the person drawing, making or executing such instrument;

(b) In the case of a conveyance (including a reconveyance of mortgaged property) by the grantee; in the case of a lease or agreement to lease by the lessee or intended lessee;

(c) in the case of a counter part of lease__________ by the lesser:

(d) in the case of an instrument of exchange ___________by the parties in equal shares;

(e) in the case of a certificate of sale _______________ by the purchaser of the property to which such certificate relates; and

(f) in the case of an instruments 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.

(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 fee of such amount (not exceeding ten rupees and not less than one rupee) 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.

(2) For this purposes 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 dully and truly set forth therein, and may reuse to proceed upon any such application, until such abstract and evidence have been furnished accordingly :

Provided that-

(a) no evidence furnished in pursuance of this section shall be used against any person in any civil proceeding except in any enquiry as to the duty with which the instrument to which it relates is chargeable; and

(b) 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 commission to state truly in such instrument any of the facts or circumstances aforesaid.

(1) When an instrument brought to the Collector under section 31, is in his opinion, one of a description chargeable 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 duty already paid respect of the instrument, is equal to the duty so determined, has been paid, the Collector shall certify by endorsement on such instrument that the fullly 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 authorise the Collector to endorse:-

(a) any instrument executed or first executed in 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;

(b) any instrument executed or first executed out of Indian and brought to him after the expiration of three months after it has been first received in the State; or

(c) Any instrument chargeable with the duty of twelve naye paise or less than twelve naye paise when brought to him, after the execution thereof on paper not duly stamped.

(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 a stamped with a stamp of the value and description required by the law in force in the State when such instrument was executed or first executed:

Provided that-

(a) nothing herein contained shall be deemed to require any Magistrate of 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;

(b) in the case of a Judge of the 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.

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

(a) what offices shall be deemed to be public officers; and

(b) who shall be deemed to be persons in charge of public officers.

No instrument chargeable with duty shall be admitted in evidence for any purpose by any person having by law or consent of parties authorized 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-

(a) any such instrument not being an instrument chargeable with a duty of twelve naya paise or less than twelve naya paise 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;

(b) any such instrument, when presented to a Registering Officer of registration, shall be registered, if the party agrees to pay the duty and penalty due thereon as decided by the Registering Officer and pays the same within seven days from the date of such decision;

(c) where a contract or agreement of any kind is effected by correspondence consisting of two more letters and any one of the letters bears the proper stamp, the contract or agreement shall be deemed to be duly stamped;

(d) 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;

(e) 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 Government, or where it bears the certificate of the Collector as provided by section 32 or any other provision of this Act.

Where an instrument has been admitted in evidence such admission shall not, except as provided in section 59, be called in question at any stage of the same suit or proceeding on the ground that the instrument has not been duly stamped.

The 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.

(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 or when he is a registering officer to register such instrument upon payment of a penalty as provided by section 34 or of duty as provided by section 36, 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.

(1) When a copy of an instrument is sent to the Collector under sub-section (1) of section 37, he may, if he thinks fit, refund the whole or any portion of the penalty in excess of ten 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.

(1) When the Collector impounds any instrument under section 33, or receives any instrument sent to him under sub-section (2) of section 37, not being an instrument chargeable with a duty of twelve naye paise or less, be 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 be endorsement thereon that it is duly stamped or that it is not so chargeable, as he case may be;

(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, 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 matters stated therein:

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

If any instrument chargeable with duty and not duly stamped, not being an instrument chargeable with a duty of twelve naye paise or less 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 proceedings under sections 33 and 39, receive such amount and proceed as next hereinafter prescribed.

(1) When the duty and penalty, if any, leviable in respect of any instrument have been paid under section 34, section 39, or section 40, 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-

(a) no instrument which has been admitted in evidence upon payment of duty and a penalty under section 34 shall be so delivered before the expiration of one month from the date of such impounding, or if the Collector ahs certified that its further detention is necessary and has not cancelled such certificate;

(b) nothing in this sections hall affect order XIII, rule 9 of the First Schedule to the Code of Civil Procedure, 1908.

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 law relating to stamps in respect of such instrument:

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

(1) When any duty or penalty has been paid under section 34, section 39, or section 40, by any person in respect of an instrument, and by agreement or under the provisions of section 30 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 and 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.

(1) Where any penalty is paid under section 34 or section 39, the Government or such other authority as may be specified by Government in this behalf 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 Government or such other authority specified under sub-section (1) stamp duty in excess of that which is legally chargeable has been charged and paid under section 34 or section 39, the Government or such authority may upon application in writing made within three months of the order charging the same, refund the excess.

(1) If any instrument sent to the Collector under sub-section (2) of section 37 is lost, destroyed or damaged during transmission, the person sending the same shall not be liable for such loss, destruction or damage.

(2) When any instrument is abut 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.

All duties, penalties and other sums required to be paid under this Chapter may be recovered by the Collector by distress and sale of the movable property of the person from whom the same are due, or by any other process for the time being in force for the recovery of arrears of land revenue.

Subject to such rules as may be made by the Government as to the evidence to be required, or the enquiry 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 stamps on any paper inadvertently and undersignedly 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;

(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;

(c) the stamp used for an instrument executed by any party thereto which-

(1) has been afterwards found to be absolutely void in law from the beginning;

(2) has been afterwards found unfit, by reason of any error or mistake therein, for the purpose originally intended;

(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;

(4) for want of the execution thereof by some material party, and his inability or refusal to sign the same, is in face incomplete and insufficient for the purpose for which it was intended;

(5) by reason f 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 officer thereby granted, totally fails of the intended purpose;

(6) becomes useless in consequence of the transaction intended to be thereby effected, being by some other instrument between he same parties and bearing a stamp of not less value ;

(7) is deficient in value and the transaction intended to be thereby effected has been effected by some other instrument between the same parties and bearing a stamp of not less value ;

(8) is inadvertently and undersignedly spoiled, and in lieu whereof another instrument made between the same parties and for same purpose is executed and duly stamped :

Provided that, in the case of an executed instrument, 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 to be cancelled.

The certificate of the Collector under section 32, that the full duty with which an instrument is chargeable has been paid, is an impressed stamp within the meaning of this section.

The application for relief under section 47 shall be made within the following periods, that is to say__

(1) in the cases mentioned in clause (c) (5) within two months of the date of the instrument;

(2) in the case of a stamped paper on which no instrument has been executed by any of the parties thereto, within six months after the stamp has been spoiled;

(3) in the case of a stamped paper in which an instrument has been executed by any of the parties thereto, within six months after the date of the instrument or, if it is not dated, within six months after execution thereof by the persons by whom it was first or alone executed :

Provided that-

(a) when the spoiled instrument has been for sufficient reasons sent out of the State, the application may be made within six months after it has been received back in the State.

(b) when, from unavoidable circumstances, any instrument for which another instrument has been substituted, cannot be given up to be cancelled within the aforesaid period, the application may be made within six months after the date of execution of the substituted instrument.

The Government or such other authority as may be specified in this behalf by Government may, without limit of time, make allowance for stamped papers used for printed forms of instruments by any banker or by any incorporated company or other body corporate, if for any sufficient reasons such forms have ceased to be required by the said banker, company or body corporate:

Provided that the Government or such authority is satisfied that the duty in respect of such stamped papers has been duly paid.

(a) 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 grater value than was necessary or has inadvertently used any stamp for an instrument not chargeable with any duty ; or

(b) 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 the provisions of section 13;

The Collector may, on application made within six months after the date of the instrument, or if it is not dated, within 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 rest amped with the proper duty, cancel and allow as spoiled the stamp so misused or rendered useless.

In any case in which allowance is made for spoiled or misused stamps, the Collector may give in lieu thereof-

(a) other stamps of the same description and value; or

(b) if required and he thinks fit, stamps of any other description to the same amount in value; or

(c) at his discretion, the same value in money deducting six naya paise for each rupee or fraction of a rupee.

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 six naya paise for each rupee or portion of a rupee, 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

(b) that he has paid the full price thereof; and

(c) that they were so purchased within the period of six months next preceding the date on which they were so delivered:

Provided that, where the person is a licensed vendor of stamps, the Collector may, if he thinks fit, make the repayment of the sum actually paid by the vendor without any such deduction as aforesaid.

Notwithstanding anything contained in section 52, when any person is possessed of a stamp or stamps in any denominations other than in denominations of annas four or multiplies thereof and such stamps or stamps has or have not been spoiled, the Collector shall repay to such person the value of such stamp or stamps in money calculated in accordance with the provisions of sub-section (2) of section 14 of the Indian Coinage Act, 1906 (3 or 1906), upon such person delivering up, within six months, form the commencement of this Act, such stamp or stamps to the Collector.

(1) The powers exercisable by a Collector under Chapter IV and Chapter V and under clause (a) of the first proviso to section 27 shall in all cases be subject to the control of the Government or such other authority as may be specified by Government in this behalf.

(2) If any Collector acting under section 31. Section 39 or section 40, feels doubt as to the amount of duty with which any instrument is chargeable, he may draw up a statement of the case and refer it with his own opinion thereon, for the decision of the Government or such other authority as may be specified by Government in this behalf.

(3) The Government or such authority shall consider the case and send a copy of its decision to the Collector, who shall proceed to assess and charge the duty, if any, in conformity with such decision.

(1) The Government or such other authority as may be specified by Government in this behalf may state any case referred to it under sub-section (2) of section 54 or otherwise coming to its notice, and refer such case, with its own opinion thereon, to the High Court.

(2) Every such case shall be decided by not less than three Judges of the High Court, and in case of difference, the opinion of the majority shall prevail.

If the High Court is not satisfied that the statements contained in the case are sufficient to enable it to determine the questions raised thereby, the Court may refer the case back to the authority by which it was stated, to make such additions thereto or alterations therein as the Court may direct in that behalf.

(1) The High Court, upon the hearing of any such case, shall decided the questions raised thereby, and shall deliver its judgment thereon containing the grounds on which such decision is founded.

(2) The Court shall send to the authority by which the case was stated, a copy of such judgment under the seal of the Court and the signature of the Registrar; and the authority shall, on receiving such copy, dispose of the case conformably to such judgment.

(1) If any Court, other that the High Court, feels doubt as to the amount of duty to be paid in respect of any instrument under proviso.

(a) to section 34, the Judge may draw up a statement of the case and refer it, with his own opinion thereon, for the decision of the High Court.

(2) The High Court shall deal with the case as if it had been referred under section 55, and send a copy of its judgment under the seal of the Court and the signature of the Registrar to the Government or such other authority specified in this behalf and another like copy of the Judge making the reference, who shall, on receiving such copy, dispose of the case conformably to such judgment.

(3) References made under sub-section (1), when made by a Court subordinate to a District Court, shall be made through the District Court, and, when made by any subordinate Revenue Court, shall be made through the Court immediately superior.

(1) When any Court in the exercise of its Civil or Revenue jurisdiction or any Criminal Court in any proceeding under Chapter XII or Chapter XXVI of the Code of Criminal Procedure, 1898, makes any order admitting any instrument in evidence as duly stamped or as not requiring a stamp, or upon payment of duty and a penalty under section 34, the Court to which appeals lie from, or references are made by, such first mentioned Court may, of its own motion or on the application of the Collector, take such order into consideration.

(2) If such court, after such consideration, is of opinion that such instrument should not have been admitted in evidence without the payment of duty and penalty under section 34, or without the payment of a higher duty and penalty than those paid, it may record a declaration to that effect, and determine the amount of duty with which such instrument is chargeable, and may require any person in whose possession or power such instrument than is, to produce the same, and may impound the same when produced.

(3) When any declaration has been recorded under sub-section (2), the Court recording the same shall send a copy thereof to the Collector and, where the instrument to which it relates has been impounded or is otherwise in the possession of such Court, shall also send him such instrument.

(4) The Collector may thereupon, notwithstanding anything contained in the order admitting such instrument in evidence, or in any certificate granted under section 41, or section 42, prosecute any person for any offence against the stamp-law which the Collector considers him to have committed in respect of such instrument:

Provided that-

(a) no such prosecution shall be instituted where the amount (including duty and penalty) which, according to the determination of such Court, was payable in respect of the instrument under section 34, is paid to the Collector, unless he thinks that the offence was committed with an intention of evading payment of the proper duty;

(b) except for the purpose of such prosecution, no declaration made under this section shall affect the validity of any order admitting any instrument in evidence, or of any certificate granted under section 41.

(1) Any person executing or signing otherwise than as a witness any instrument chargeable with duty, without the same being duly stamped shall for every such offence be punishable with fine which may extend to five hundred rupees :

Provided that when any penalty has been paid in respect of any instrument under section 34, section 39 or section 59, 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) 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 hundred rupees.

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

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

(a) executes any instrument in which all the facts and circumstances required by section 28 to be set forth in such instrument are not fully and truly set forth; or

(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

(c) does any other act calculated to deprive the Government of any duty or penalty under this Act;

Shall be publishable with five which may extend to five thousand rupees.

Any person who with intent to defraud the Government of duty, practices or is concerned in any act, contrivance or device not specially punishable under this Act or any other law for the time being in force shall be punishable with fine which may extend to one thousand rupees.

(a) any person appointed to sell stamps who disobeys any rule made under section 69, and

(b) any person not so appointed who sells or offers for sale any stamp other than a stamp of the value of twelve naye paise or less.

Shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both.

(1) No prosecution in respect of any offence punishable under this Act or any enactment hereby repealed, shall be instituted without the sanction of the Collector or such other officer as the Government generally, or the Collector specially, authorises in that behalf.

(2) The Government, or any officer generally or specially authorized by it in this behalf, may stay any such prosecution or compound any such offence.

(3) The amount of any such composition shall be recoverable in the manner provided by section 46.

No Magistrate other than a Magistrate whose powers are not less than those of a Magistrate of the First class, shall try any offence under this Act.

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 1898.

Every publ8ic officer having in his custody any registers, books, records, papers, documents or proceedings, the inspection whereof may tend to secure any duty, or to prove or lead to the discovery of any fraud or omission in relation to any duty, shall at all reasonable times permit any person authorized in writing by the Collector in inspect for such purpose the registers, books, papers documents and proceedings, and to take such notes and extracts as he may deem necessary, without fee or charge.

(1) The Government may, by notification in the Gazette, make rules to carry out generally the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power such rules may be made for regulating-

(a) the supply and the sale of stamps and stamped papers.

(b) the person by whom alone such sale is to be conducted,

(c) the duties and remuneration of such persons and,

(d) the fines which shall in no case exceed five hundred rupees to be incurred on breach of any rule:

Provided that such rules shall not restrict the sale of adhesive stamp of the value of twelve naye paise or less.

(3) All rules made under this Act shall be laid, as soon as may be, after they are made, before the Legislative Assembly while it is in session for a total period of not less than 14 days which may be comprised in one session or in two or more sessions and if, before the expiry of the said period the Legislative Assembly makes any modification in the rules or directs that any rule shall not have effect, the rules shall thereafter have effect only in such modified from or be of no effect, as the case may be.

Noth9ing contained in this Act shall be deemed to affect the duties chargeable under any enactment for the time being in force relating to Court-fees.

All stamps in denominations of annas four multiples thereof shall be deemed to be stamps of the value of twenty-five naye paise, or as the case may be, multiples thereof and shall, accordingly, be valid for all the purposes of this Act.

The Indian Stamp Act, 1899 (Central Act 2 of 1899) as in force in the Malabar District referred to in section 5 (2) of the States Reorganization Act, 1956 (Central Act 37 of 1959) in so far as it relates to the matter specified in Entry 44 of List III of the Seventh Schedule to the Constitution in respect of documents specified in Entry 91 of List I of the said Schedule, shall notwithstanding anything contained in any law, extend to the whole of the State Kerala.

The Indian Stamp Act, 1899 (Central Act 2 of 1899) in its application to the Malabar District referred to in section 5 (2) of the State Reorganization Act, 1959 (Central Act 37 of 1959) in so far as it relates to the matter specified in Entry 44 of List III of the Seventh Schedule to the Constitution in respect of documents falling under Entry 63 of List II in the said Schedule and the Travencore-Cochin Stamp Act, 1125 (Act 1 of 1125) are hereby repealed:

Provided that such repeal shall not affect-

(a) the previous operation of the said enactments or anything duly done or suffered thereunder;

(b) any right, privilege, obligation or liability acquired, accrued or incurred under the said enactments;

(c) any penalty, forfeiture or punishment incurred in respect of any offence committed against the said enactments; or

(d) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability forfeiture or punishment as aforesaid and any such investigation, legal proceeding or remedy may be instituted, continued or enforced, and any such penalty, forfeiture or punishment may be imposed as if this Act had not been passed.