Instruments impounded how dealt with
Section 38 of the Indian Stamp Act, 1899 deals with instruments impounded how dealt with. When the person impounding an instrument under section 33 has by law or consent of parties authority to receive evidence and admits such instrument in evidence upon payment of a penalty as provided by section 35 or of duty as provided by section 37, he shall send to the Collector an authenticated co The Act came into force on 01 Jul 1899.
(1) When the person impounding an instrument under section 33 has by law or consent of parties authority to receive evidence and admits such instrument in evidence upon payment of a penalty as provided by section 35 or of duty as provided by section 37, he shall send to the Collector an authenticated copy of such instrument, together with a certificate in writing, stating the amount of duty and penalty levied in respect thereof, and shall send such amount to the Collector, or to such person as he may appoint in this behalf.
(2) In every other case, the person so impounding an instrument shall send it in original to the Collector.
Section 38, 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.
This section refers to
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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Trustees of H. C. Dhanda Trust Trustee, Jogesh vs The State of Madhya Pradesh Collector Indore
Court's Decision & Legal Precedent
When a discretion is vested by statute in a public authority to impose penalty not exceeding ten times the proper duty or deficient portion thereof under Section 40(1)(b) of the Indian Stamp Act, 1899, such discretion must be exercised reasonably and not in an oppressive manner. The imposition of extreme penalty of ten times is not automatic or mechanical but requires consideration of relevant factors including the conduct of the party, intent, fraud, deceit, and circumstances of the case. Mere intention to evade duty is insufficient to justify the maximum penalty; it is only in very extreme situations that the maximum penalty should be imposed. The purpose of penalty is deterrence and not retribution.
On this section: Procedure for sending instruments to Collector; power to refund penalty
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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: Prescribes mode and manner of dealing with impounded instruments
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.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Vide Order dated 19.09.2022, the Apex Court dismissed the Applications, leaving this question to be decided by the learned Arbitrator. 10. In the meanwhile, , the respondents filed an Application under Section 33, 35 and 38 of the Indian Stamp Act, 1899, on 26.07.2022 seeking the directions to be issued to the Claimant to deposit and pay the penalty, in terms of Section 35 Proviso (a) of the Indian Stamps Act, 1899 and allowed the Claimant to present the Loan Agreement and the Facility Schedules into evidence in terms of Section 35 …
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… He states that the defects are required to be cured by the petitioner and the document need to be impounded and should be dealt with, in the manner specified under Section 38 of the Indian Stamp Act, 1899. In support of his submission, he has relied upon the judgment of the Supreme Court in SMS Tea Estates Private Limited vs. Chandmari Tea Company Private Limited, (2011) 14 SCC 66 . He has also relied upon the judgment of the Supreme Court in Garware Wall Ropes Ltd. vs. Coastal Marine …
Questions about Section 38
What have the courts held on Section 38 of the Indian Stamp Act?
Trustees of H. C. Dhanda Trust Trustee, Jogesh vs The State of Madhya Pradesh Collector Indore (17 Sep 2020) is the leading judgment on this section among those set out below: Procedure for sending instruments to Collector; power to refund penalty. Another 1 judgment on this section is set out below, all of them from the Supreme Court. They run from 2008 to 2020.
How do I find court cases under Section 38 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 38, section 38 Stamp Act, section 38 of the Indian Stamp Act. People searching for it also type section 38 of indian stamp act 1899. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Trustees of H. C. Dhanda Trust Trustee, Jogesh vs The State of Madhya Pradesh Collector Indore (17 Sep 2020).
What should I read with Section 38 of the Indian Stamp Act, and has it changed?
Its own text turns on section 33 (Examination and impounding of instruments), section 35 (Instruments not duly stamped inadmissible in evidence, etc), section 37 (Admission of improperly stamped instruments), so none of them can safely be read on its own. 3 other provisions in this corpus refer back to it.
When did Section 38 of the Indian Stamp Act come into force?
Section 38 of the Indian Stamp Act, cited as Stamp Act 38, 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 14 Oct 2026. This page is not a substitute for legal advice.