ANU KANIYALI (ADVOCATE) 23 November 2010

Stamp Paper

Respected All,

I have purchased a Stamp Paper of Rs.100/- for the purpose of executing a G.P.A. Deed for vehicle release from Traffic Police Station. I could not use it immediately due to some reasons. Could you please tell me the validity period of a stamp paper? I learnt that it is just 15 days from the date of Purchase, in Karnataka. Can it not be used later for executing a G.P.A. for the above purpose, for the same party? Please guide me.

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AEJAZ AHMED (Legal Consultant/Lawyer) 23 November 2010

Indian Stamp Act, 1899

54. Allowance for stamps not required for use :–

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 ¹[ten naye 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:-

that such stamp or stamps were purchased by such person with a bona fide intention to use them; and

that he has paid the full price thereof; and

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.

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It is observed by the Supreme Court in the case of Thiruvengada Pillai vs Navaneethammal & Anr as follows:

. The Indian Stamp Act, 1899 nowhere prescribes any expiry date for use of a stamp paper. Section 54 merely provides that a person possessing a stamp paper for which he has no immediate use (which is not spoiled or rendered unfit or useless), can seek refund of the value thereof by surrendering such stamp paper to the Collector provided it was purchased within the period of six months next preceding the date on which it was so surrendered. The stipulation of the period of six months prescribed in Section 54 is only for the purpose of seeking refund of the value of the unused stamp paper, and not for use of the stamp paper. Section 54 does not require the person who has purchased a stamp paper, to use it within six months. Therefore, there is no impediment for a stamp paper purchased more than six months prior to the proposed date of execution, being used for a document.