HAJI GH NABI MATHANJI Vs. LAL MOHD BANGROO

JUDGEMENT

(1.) THE question before the Fall Bench is whether a negotiable instrument executed or negotiated in the State must be affixed with stamps of the description prescribed by the Jammu and Kashmir Stamp Act, 1977 or with these prescribed by the Indian Stamp Act, 1899.

(2.) THIS question has arisen in two civil suits between the parties herein which are pending in this court on its original side. Both these suits are founded upon pronotes. Before the learned single Judge trying these suits an objection was taken on behalf of the defendants that the pronotes were inadmissible in evidence as they were not duly stamped. It was contended that the pronotes bear stamps of the description prescribed by the State Act and not these prescribed by the Central Act, as they should have, having regard to the provisions of the Negotiable Instruments Act which was applicable to the State. The learned Single Judge felt that the question raised required consideration by a larger bench and made a reference accordingly. That is how the matter has come before us.

(3.) THE law relating to stamps in force in the State is contained in the Jammu and Kashmir Stamp Act, 1977. This Act was enacted by the then Maharaja as an absolute ruler of the State having plenary powers of legislation in relation thereto. The Act came into force on 1st day of Baisakh 1978 corresponding to 13th April, 1920 A.D. Ever since it has remained in force in the State. Meanwhile, following accession of the State to the Union of India. The constitution of India was made applicable to the State, of course, with some additions and modifications. The constitutional relationship between the Union and the State, as defined by the provisions of the Constitution applicable to the State, envisages that, in respect of certain matters provided in List 1 in 7th schedule of the Constitution, the power of legislation in relation to the State would exclusively vest in the Union Parliament. These matters include the matter covered by entry 91 of the said list which reads thus :