(1) When any duty or penalty has been paid under section 35, section 37, section 40 or section 41, by any person in respect of an instrument, and, by agreement or under the provisions of section 29 or any other enactment in force at the time such instrument was executed, some other person was bound to bear the expense of providing the proper stamp for such instrument, the first-mentioned person shall be entitled to recover from such other person the amount of the duty or penalty so paid.
(2) For the purpose of such recovery any certificate granted in respect of such instrument under this Act shall be conclusive evidence of the matters therein certified.
Legal Commentary & Landmark Judgments: Section 44
Section 44 creates an express statutory right of reimbursement and indemnification, entitling any person who pays stamp duty or penalty on an impounded instrument under Sections 35, 37, 40, or 41 to recover that expenditure from the party legally obligated under Section 29 or by contract to bear the expense.
In commercial litigation or arbitration where an unstamped agreement is impounded, the relying party should immediately deposit the deficit duty and 10x penalty to ensure immediate evidentiary admissibility. Concurrently, move an application under Section 44(3) praying for a formal payment certificate and an interim direction including the deposited sum in the interim costs of the cause or reserving the right to file a summary recovery suit under Order XXXVII of the CPC.