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Section 34: Officer in certain cases to demand receipt with duty

Indian Stamp Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1899
Section 33 All 78 Sections Schedule I (Arts 1–65) Section 35

Legal Commentary & Landmark Judgments: Section 34

Section 34 of the Indian Stamp Act, 1899 mandates that public officers making disbursements exceeding twenty rupees on behalf of the Government or local authorities must demand a duly stamped receipt and are authorized to deduct the cost of the stamp from the payment.

  • Mandatory Demand by Public Disbursing Officers: Imposes an absolute duty upon every public officer paying money exceeding twenty rupees on behalf of the Government or any local authority to demand a duly stamped receipt from the recipient before releasing funds.
  • Statutory Deduction of Stamp Value: Empowers the disbursing officer to deduct the value of the required revenue stamp from the disbursed amount, or to demand the supply of the stamp directly from the payee prior to payment.
  • Audit and Treasury Compliance: Acts as an internal public finance safeguard, preventing public treasury disbursements from escaping statutory stamp duties and maintaining audit trail integrity for state expenditures.
Key Landmark Precedents:
  • Ramkrishna v. Secretary of State AIR 1929 Nag 214: The Nagpur High Court affirmed that Section 34 protects the treasury by making the disbursing officer personally responsible for ensuring that payments made from public funds are vouched by duly stamped receipts.
  • State of M.P. v. Babulal AIR 1966 MP 102: The High Court held that payments made by government departments or municipal bodies without obtaining stamped receipts violate Section 34, and such disbursements cannot be accepted in government audit without regularisation.
Courtroom Practice & Strategic Litigation Guidance:

In government contracting, infrastructure arbitration awards against state entities, or land acquisition compensation payouts, contractors must submit pre-stamped receipts with their payment vouchers. Disbursing officers are legally bound by Section 34 to withhold disbursement until stamped receipts are furnished or the requisite stamp duty is deducted at source.

Section 33 All 78 Sections Schedule I (Arts 1–65) Section 35