Instruments reserving interest
Section 23 of the Indian Stamp Act, 1899 deals with instruments reserving interest. Where interest is expressly 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. The Act came into force on 01 Jul 1899.
Where interest is expressly 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.
Section 23, The Indian Stamp Act, 1899 (Act 2 of 1899).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Avinash Kumar Chauhan vs Vijay Krishna Mishra
Court's Decision & Legal Precedent
The phrase 'for any purpose whatsoever' in Section 35 of the Indian Stamp Act 1899 must be given its natural and full meaning, and applies with absolute force to bar admission of unstamped or insufficiently stamped instruments in evidence regardless of whether the purpose is primary (enforcement of contract) or collateral (proof of consideration payment or any other subsidiary fact). An instrument chargeable with stamp duty that has not been properly stamped cannot be admitted in evidence for any purpose unless the requirements of the provisos to Section 35 are satisfied by payment of proper duty and applicable penalties. The proviso to Section 49 of the Indian Registration Act 1908, which permits use of unregistered documents for collateral purposes, does not operate to override or diminish the absolute bar created by Section 35 of the Stamp Act. Where an agreement to sell is accompanied by transfer of possession before execution of formal conveyance, it becomes a conveyance by virtue of the legal fiction created in the Explanation to Article 23 of Schedule IA, and is therefore subject to stamp duty applicable to conveyances rather than agreements to sell.
On this section: Establishes stamp duty rate on agreements to sell immovable property; Explanation inserted by M.P. Act 19 of 1989 creates legal fiction treating agreement to sell as conveyance when possession is transferred before execution of actual conveyance
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 23
What have the courts held on Section 23 of the Indian Stamp Act?
Avinash Kumar Chauhan vs Vijay Krishna Mishra (17 Dec 2008) is the leading judgment on this section among those set out below: Establishes stamp duty rate on agreements to sell immovable property; Explanation inserted by M.P. Act 19 of 1989 creates legal fiction treating agreement to sell as conveyance when possession is transferred before execution of actual conveyance.
How do I find court cases under Section 23 of the Indian Stamp Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Stamp Act 23, section 23 Stamp Act, section 23 of the Indian Stamp Act. People searching for it also type indian stamp act article 23 and article 23a indian stamp act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Avinash Kumar Chauhan vs Vijay Krishna Mishra (17 Dec 2008).
What should I read with Section 23 of the Indian Stamp Act, and has it changed?
1 other provision in this corpus refers back to it.
When did Section 23 of the Indian Stamp Act come into force?
Section 23 of the Indian Stamp Act, cited as Stamp Act 23, came into force on 01 Jul 1899, having been enacted on 27 Jan 1899. It is in force as at the date shown on this page.
Other sections of this Act
- 47. Power of payer to stamp bills, and promissory notes received by him unstamped4923 words
- 2. Definitions3110 words
- 3. Instruments chargeable with duty1916 words
- 10. Duties how to be paid1187 words
- 28. Direction as to duty in case of certain conveyances961 words
- 73. Books, etc., to be open to inspection932 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 17 Oct 2026. This page is not a substitute for legal advice.