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Section 74: Powers to make rules relating to sale of stamps

Indian Stamp Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1899
Section 73 All 78 Sections Schedule I (Arts 1–65) Section 75

Legal Commentary & Landmark Judgments: Section 74

Section 74 delegates rule-making authority to the State Government to regulate the sale, distribution, licensing, commission, and register maintenance of stamps and licensed stamp vendors across the State.

  • Comprehensive Vendor Regulation: Authorizes the State Government to frame rules regulating: (a) the supply and sale of stamps and stamped papers; (b) the persons by whom alone such sale is to be conducted; and (c) the duties and fees of such vendors.
  • Licensing and Remuneration Framework: Provides the statutory basis for issuing vendor licenses, prescribing vendor discount/commission rates, and setting limits on the maximum denomination of stamps a vendor can sell.
  • Mandatory Maintenance of Sales Register: Requires vendors to maintain bound registers recording the date of sale, serial number, purchaser name, residence, and the specific instrument purpose for which the stamp was sold.
  • Delegated Legislation with Force of Law: Rules framed under Section 74 possess statutory force; any violation of these rules directly triggers criminal penal liability under Section 69.
Key Landmark Precedents:
  • State of Rajasthan v. Ramkishan, 1989 Supp (2) SCC 134: The Supreme Court affirmed that rules framed by State Governments under Section 74 are binding subordinate legislation, and breach of register maintenance rules justifies immediate revocation of license and criminal prosecution.
  • State of U.P. v. Babu Ram Upadhya, AIR 1961 SC 751: A Constitution Bench of the Supreme Court held that rules framed pursuant to statutory delegation have the same legal efficacy as if enacted within the parent statute itself.
  • P.L. Lakhanpal v. Union of India, AIR 1967 SC 1507: The Supreme Court reiterated that statutory regulatory schemes over licensed commercial agents must be exercised strictly within the boundaries of the delegating statutory provision.
Courtroom Practice & Strategic Litigation Guidance:

In property litigation where a document's execution date is fiercely challenged, summon the licensed stamp vendor and the Treasury Officer under Section 74 rules. Demand the production of the vendor's original physically bound register to cross-examine whether the serial number and purchaser's signature match the disputed document, exposing back-dated or manufactured deeds.

Section 73 All 78 Sections Schedule I (Arts 1–65) Section 75