Unstamped instruments under the Stamp Act can be validated after duty and penalty, then acted upon as duly stamped.

An unstamped award or other chargeable instrument can be impounded under the Stamp Act, sent for determination of duty and penalty, and validated by the prescribed endorsement. Until compliance with that statutory procedure, it cannot be admitted in evidence or acted upon. Sections 33, 35, 38, 40 and 42 together permit cure of the defect, and Section 36 does not prevent the instrument from being used after duty and penalty are paid and certification is made. Once endorsed under Section 42, the instrument is admissible and may be acted upon as if duly stamped.

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Issues: Whether an unstamped award could be impounded and, after payment of duty and penalty and endorsement under the Stamp Act, be acted upon in the same proceeding.

Analysis: The award was an instrument chargeable with duty and, until duly stamped, could not be admitted in evidence or acted upon. The statutory scheme under Sections 33, 35, 38, 40 and 42 provides for impounding of an unstamped instrument, transmission to the Collector, payment of duty and penalty, and certification by endorsement. Section 36 does not bar the instrument from being acted upon after compliance with the statutory procedure. The consequence of Section 42(2) is that an instrument so endorsed becomes admissible in evidence and may be acted upon as if it had been duly stamped.

Conclusion: The Court held that an unstamped instrument is not beyond validation under the Stamp Act and, once duty and penalty are paid and endorsed, it may be acted upon. The appeal was dismissed.

Ratio Decidendi: An instrument not duly stamped can be impounded and, upon payment of duty and penalty with the requisite endorsement, becomes admissible in evidence and capable of being acted upon as if it had been duly stamped.

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