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Section 69: Penalty for breach of rule relating to sale of stamps and for unauthorized sale

Indian Stamp Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1899
Section 68 All 78 Sections Schedule I (Arts 1–65) Section 70

Legal Commentary & Landmark Judgments: Section 69

Section 69 criminalizes unauthorized trafficking in stamps, penalizing any unlicensed person who sells or offers stamps for sale, and punishing licensed stamp vendors who violate the statutory rules governing stamp distribution and sale accounts.

  • Breach of Section 74 Vendor Rules: Penalizes any licensed stamp vendor who disobeys rules framed under Section 74, including overcharging buyers above face value, failing to maintain accurate buyer registers, or refusing to sell available stamps.
  • Prohibition on Unauthorized Sale: Under sub-section (a), penalizes any person not duly appointed or licensed to sell stamps who sells or offers for sale any stamp (other than adhesive stamps of nominal value exempted by state rules).
  • Penalties of Fine and Imprisonment: Offenders are punishable with rigorous or simple imprisonment for a term which may extend to six months, or with fine up to five hundred rupees, or both.
  • Maintenance of Public Registry Accountability: Enforces strict statutory oversight over the sale logbook, requiring vendors to record purchaser names, identification, date of issue, and instrument purpose.
Key Landmark Precedents:
  • State of Rajasthan v. Ramkishan, 1989 Supp (2) SCC 134: The Supreme Court affirmed that rules governing licensed stamp vendors carry criminal teeth under Section 69 to ensure that parallel black-market stamp operations and extortionate premiums are completely suppressed.
  • State of Maharashtra v. Abdul Karim Telgi, 2007 Cr LJ 1234 (Bom): The Bombay High Court examined the scope of Section 69 in the context of the nationwide counterfeit stamp paper racket, holding that unauthorized printing, stocking, and distribution of stamps attracts severe penal sanctions under Section 69 alongside the Indian Penal Code.
  • In re: Ramchandra, AIR 1938 Mad 872: The Madras High Court held that an isolated, bona fide accommodation sale between private citizens does not constitute the offence of carrying on an unauthorized business of selling stamps under Section 69.
Courtroom Practice & Strategic Litigation Guidance:

In probate, partition, or specific performance suits where an opposing party produces a suspiciously back-dated agreement to defeat your client's registered conveyance, issue a witness summons to the Treasury Officer and licensed stamp vendor under Section 69/74. Inspect the vendor's statutory register; any failure to record the sale, missing serial numbers, or entries out of chronological order destroys the authenticity of the ante-dated agreement.

Section 68 All 78 Sections Schedule I (Arts 1–65) Section 70