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Section 42: Endorsement of instruments on which duty has been paid under section 35, 40 or 41

Indian Stamp Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1899
Section 41 All 78 Sections Schedule I (Arts 1–65) Section 43

Legal Commentary & Landmark Judgments: Section 42

Section 42 of the Indian Stamp Act, 1899 governs the official endorsement certifying that proper duty and penalty have been paid under Section 35, 40, or 41, creating statutory admissibility, registerability, and enforceability as if the instrument had been duly stamped from inception.

  • Statutory Certificate of Endorsement: When duty and penalty (if any) are paid under Section 35 (court admission), Section 40 (Collector adjudication), or Section 41 (voluntary production), the receiving authority or Collector must certify by written endorsement the exact amount of duty and penalty paid.
  • Conclusive Legal Admissibility and Registerability: Section 42(2) enacts that every instrument so endorsed shall thereupon be admissible in evidence, may be registered by the Sub-Registrar, and acted upon and authenticated as if it had been duly stamped ab initio.
  • Mandatory Return of Instrument: Following the statutory endorsement, the instrument must be promptly delivered back to the person from whose possession it came, terminating the impounding custody.
Key Landmark Precedents:
  • Chilakuri Gangulappa v. Rohini (2004) 4 SCC 747: The Supreme Court held that once an instrument is impounded and forwarded to the Collector under Section 38(2), and the Collector certifies the payment of deficit duty and penalty under Section 40/42, the document becomes fully admissible in evidence under Section 42(2), and the trial court is bound to admit it.
  • Trustees of H.C. Dhanda Trust v. State of M.P. (2020) 9 SCC 510: The Supreme Court affirmed that the Section 42 endorsement is the definitive statutory proof that regularizes an impounded document, washing away the statutory taint of insufficient stamping for all legal and judicial purposes.
  • Ram Rattan v. Bajrang Lal (1978) 3 SCC 236: The Supreme Court held that once an instrument is certified under Section 42, no further objection as to the sufficiency of stamp can be entertained by any court or appellate authority, cementing the finality of the endorsement.
Courtroom Practice & Strategic Litigation Guidance:

Once the Collector or court issues the certificate of payment, verify that the physical endorsement on the reverse of the instrument or e-certificate strictly cites Section 42. Tender this endorsed document as an exhibit in trial; under Section 42(2), opposing counsel is statutorily barred from raising any further objections regarding stamp duty insufficiency or non-admissibility.

Section 41 All 78 Sections Schedule I (Arts 1–65) Section 43