Stamp duty compliance turns on the executing State's law, not another State's stamps, for a mortgage deed.

A mortgage deed executed in Uttar Pradesh was chargeable to stamp duty under Uttar Pradesh law, and compliance had to be tested under both the Act and the Stamp Rules, which required stamps overprinted for that State. Stamping in accordance with West Bengal law did not satisfy the Uttar Pradesh requirement, because duty arose on execution within Uttar Pradesh and the instrument had to be stamped in the manner prescribed there. Section 19A applied only where an instrument first chargeable elsewhere later became chargeable in Uttar Pradesh at a higher rate; it did not cure non-compliance with the State of initial liability. The deed was therefore not duly stamped under Uttar Pradesh law.

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Issues: Whether a mortgage deed executed in Uttar Pradesh but relating to property in West Bengal, and stamped with West Bengal overprinted stamps, was duly stamped for the purpose of the Uttar Pradesh stamp law.

Analysis: The liability to stamp duty arose on execution in Uttar Pradesh, and the Uttar Pradesh amendments treated execution within the State as the primary dutiable event. Rule 3 of the Uttar Pradesh Stamp Rules required payment by stamps overprinted with "Uttar Pradesh" or "U.P.". Section 76 gave the rules statutory force, so compliance had to be tested under both the Act and the rules. The fact that the document was stamped in accordance with West Bengal law did not satisfy the requirement of being stamped in accordance with the law in force in Uttar Pradesh. Section 19A dealt with cases where an instrument already chargeable elsewhere later became chargeable in Uttar Pradesh at a higher rate, in which event only the excess duty was payable; where the Uttar Pradesh rate was the same or lower, no further duty was required. Even so, the instrument had first to satisfy the law of the State where the initial liability arose.

Conclusion: The mortgage deed was not duly stamped under the Uttar Pradesh law, and the challenge failed.

Final Conclusion: The State authorities were justified in treating the instrument as insufficiently stamped under the applicable Uttar Pradesh stamp law, and no relief was available to the petitioners.

Ratio Decidendi: When an instrument is chargeable to stamp duty on execution within a State, it is duly stamped only if the duty is paid in the manner and with the description of stamps required by that State's Act and rules; compliance with another State's stamp law does not suffice.

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