Stamp Act treatment of Shah Jog Hundi: a time-payable hundi can fall within the extended bill of exchange definition.

A Shah Jog Hundi is not a bill of exchange under the Negotiable Instruments Act because it lacks an unconditional order to pay to a specified person or bearer. For the Stamp Act, however, the definition of bill of exchange is broader and includes a hundi; an instrument fixing payment at a stated period can fall within the extended meaning of a bill of exchange payable on demand under Section 2(3)(b). The interpretative rule that the singular includes the plural supported this reading. Earlier contrary reasoning was said to be incorrect to the extent it overlooked the Stamp Act's expanded definition.

---

---

Issues: Whether a Shah Jog Hundi payable at a stated period is a bill of exchange payable on demand for the purposes of the Stamp Act and therefore exempt from stamp duty.

Analysis: A Shah Jog Hundi is not a bill of exchange under the Negotiable Instruments Act, 1881 because it does not contain an unconditional order to pay to a specified person or bearer. For the Stamp Act, however, the definition of bill of exchange is wider and includes a hundi. The document in question fixed time for payment and fell within the extended concept in Section 2(3)(b) of the Stamp Act, which treats an order for payment at stated periods as a bill of exchange payable on demand. The general interpretative rule that singular includes plural and vice versa supported the view that a document payable in one stated period is also covered. The contrary reasoning in earlier decisions was held to be incorrect to the extent it ignored the extended statutory definition under the Stamp Act.

Conclusion: The hundi was a bill of exchange payable on demand within the meaning of the Stamp Act and was exempt from duty, so it was admissible in evidence.

---