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Section 30: Obligation to give receipt in certain cases

Indian Stamp Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1899
Section 29 All 78 Sections Schedule I (Arts 1–65) Section 31

Legal Commentary & Landmark Judgments: Section 30

Section 30 of the Indian Stamp Act, 1899 imposes a mandatory statutory obligation upon any person receiving money, negotiable instruments, or property exceeding twenty rupees to issue a duly stamped receipt upon demand, backed by criminal sanctions under Section 65.

  • Mandatory Obligation on Demand: Any person receiving any money exceeding twenty rupees, or any bill of exchange, cheque, or promissory note exceeding twenty rupees, or receiving property in debt satisfaction exceeding twenty rupees, must give a duly stamped receipt upon demand by the payer.
  • Criminal Sanction for Refusal [Section 65]: Refusal or neglect to give a duly stamped receipt upon demand constitutes a statutory offence punishable under Section 65 with a fine extending up to one hundred rupees, providing statutory enforcement teeth.
  • Statutory Exceptions and Exemptions: Receipts given for money or securities paid to the Government, or receipts endorsed on stamped instruments (such as mortgage discharges or cheque endorsements), are exempt from separate receipt stamping under Schedule I Item 53.
Key Landmark Precedents:
  • In Re: Karsandas Natha (1900) 2 Bom LR 583: The Bombay High Court affirmed that Section 30 creates a mandatory statutory duty; an acknowledgment of payment over the statutory threshold made without stamping upon demand constitutes a direct violation of the Stamp Act punishable under Section 65.
  • Empress v. Kallu (1883) ILR 5 All 233: The Allahabad High Court held that the demand by the payer is a condition precedent to the criminal offence under Section 65 for failure to give a stamped receipt under Section 30.
Courtroom Practice & Strategic Litigation Guidance:

In commercial loan repayments, cash settlements, or arbitral escrow distributions, always tender a formal written demand for a stamped receipt at the time of making payment. If the payee provides an unstamped acknowledgment or refuses a receipt, place the demand on record; unstamped receipts are inadmissible to prove debt discharge under Section 35 and expose the payee to Section 65 prosecution.

Section 29 All 78 Sections Schedule I (Arts 1–65) Section 31