Collector's power to refund penalty paid under section 38, sub-section (1)
Section 39 of the Indian Stamp Act, 1899 deals with collector's power to refund penalty paid under section 38, sub-section (1). When a copy of an instrument is sent to the Collector under section 38, sub-section (1), he may, if he thinks fit, refund any portion of the penalty in excess of five rupees which has been paid in respect of such instrument. The Act came into force on 01 Jul 1899.
(1) When a copy of an instrument is sent to the Collector under section 38, sub-section (1), he may, if he thinks fit, 1*** refund any portion of the penalty in excess of five rupees which has been paid in respect of such instrument.
(2) When such instrument has been impounded only because it has been written in contravention of section 13 or section 14, the Collector may refund the whole penalty so paid.
Section 39, 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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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: Collector's power to refund penalty in excess of five rupees; discretionary power to reduce penalty
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.
Made under this section, and citing it
1 instrument names this provision in its title or its text without being made under it.
Questions about Section 39
What have the courts held on Section 39 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: Collector's power to refund penalty in excess of five rupees; discretionary power to reduce penalty.
How do I find court cases under Section 39 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 39, section 39 Stamp Act, section 39 of the Indian Stamp Act. People searching for it also type section 39 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 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 39 of the Indian Stamp Act, and has it changed?
Its own text turns on section 13 (Instruments stamped with impressed stamps how to be written), section 14 (Only one instrument to be on same stamps), section 38 (Instruments impounded how dealt with), so none of them can safely be read on its own. One instrument names it without being made under it, most recently The Andaman and Nicobar Islands Stamp Rules and its Amendments (1979).
When did Section 39 of the Indian Stamp Act come into force?
Section 39 of the Indian Stamp Act, cited as Stamp Act 39, 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 15 Oct 2026. This page is not a substitute for legal advice.