AIR 1954 PUNJAB 301

Punjab High Court

Hon'ble Judge(s): Khosla, Falshaw , JJ

(A) Stamp Rules (1925) , R.4, R.11, R.18— Hundi for sum exceeding Rs. 30,000 - Hundi if covered by R.18 - Admissibility in evidence . Stamp Act (2 of 1899) , S.32, S.35— Rule 18 must be read subject to the provisions of the statute itself and Rules 4 and 11. Rule 18 only provides for the validation of an instrument which bears the correct amount of stamp duty, but in the wrong form, and it @page-Punj302 cannot possibly be said that a hundi for a sum exceeding Rs. 30,000/-, even if the stamp duty paid on it is correct, is covered by Rule 18 in view of the strict formalities required by Rule 11 and is inadmissible in evidence.(Para 6) Anno : Stamp Act, S. 32, N. 4; S. 35, N. 20. (B) Stamp Act (2 of 1899) , S.35— Suit on original consideration. Unless it can be shown that a Hundi does not contain all the terms of the contract between the parties the suit must fail where the instrument is inadmissible for want of proper stamping, and the plaintiff cannot be allowed to fall back on the loan which forms the consideration for the hundi in suit. Case law discussed.(Para 10 11) Anno : Stamp Act, S. 35, N. 12, Pt. 5. ....