SIVASUBRAMANIA THEVAN Vs. KALANKARAYAN KONAR

JUDGEMENT

(1.) This is a civil revision petition to revise an order of the learned District Munsif, Tinnevelly and it relates to the Stamp Act. The defendant made a promissory note in Colombo on the 11 March, 1934 in favour of one Arunachala Thevar. The promissory note was at the time stamped with one anna adhesive stamp, the correct stamp for a note in British India and was duly cancelled. That must be taken to have happened on the 11 March, 1934. On or before the 11 March, 1935, the promissory note came into British India and was assigned to the plaintiff. The relevant portions of the Stamp Act are: Section 3. Subject to the provisions of this Act and the exemptions contained in Schedule I, the following instruments shall be chargeable with duty of the amount indicated in that schedule as the proper duty therefor respectively, that is to say-- (b) every promissory note drawn or made out of British India on or after that day and accepted or paid, or presented for acceptance or payment, or indorsed, transferred or otherwise negotiated, in British India.

(2.) Section 19 provides that: The first holder in British India of any promissory note drawn or made out of British India shall, before he presents the same for acceptance or payment or endorses, transfers or otherwise negotiates the same in British India, affix thereto the proper stamp and cancel the same.

(3.) There is a proviso that: If, at the time any such bill of exchange or note comes into the hands of any holder thereof in British India, the proper adhesive stamp is affixed thereto and cancelled in manner prescribed by Section 12 and such holder has no reason to believe that such stamp was affixed or cancelled otherwise than by the person and at the time required by this Act, such stamp shall, so far as relates to such holder, be deemed to have been duly affixed and cancelled.