- (1.) The appellant filed a suit in the Original Side of the High Court at Calcutta on a duly completed policy of fire insurance dated March 15, 1951 and bearing No. 26625, and an unstamped letter of cover dated November 5, 1951, in respect of the same kind of insurance, issued by the respondent, to recover from it the loss suffered as a result of the destruction of the insured goods by fire. The respondent admitted liability on policy No. 26625 but with regard to the letter of cover it contended that the letter was not admissible in evidence for want of stamp. As it did not contest liability on that letter on any other ground nor on the policy, the only question in this appeal is whether the letter of cover can be admitted in evidence. That question depends on some of the provisions of the Stamp Act, 1899, to which reference will be made in due course.
(2.) The letter of cover which bore the description 'Interim Protection Note' provided that the appellant "Proposing to effect insurance against fire .... and having agreed to pay .... Tariff Premium thereon, the property is hereby held insured to the extent of Rs. 1,00,000/- in the manner, specified below." Then followed a description of the goods and the statement that the risks to be covered were to be as per the said policy No. 26625 for twelve months from November 5, 1951. Thereafter it was stated. "The protection is in force for thirty days....or until the Company's Policy is prepared unless the Insurance is declined". The fire on which the claim is based, occurred on the night of November 5, 1951 or during the early hours of the morning of the next day. It is not in dispute that the appellant offered to pay all premium due on the letter of cover.
(3.) It will be useful at this stage to refer to two of the provisions of the Stamp Act and they are S. 35 and Art. 47 in Schedule I. Section 35 provides, "No instrument chargeable with duty shall be admitted in evidence for any purpose .... unless such instrument is duly stamped: Provided that - (a) any such instrument not being an instrument chargeable with a duty not exceeding ten naye paise only, or a bill of exchange or promissory note, shall, subject to all just exceptions, be admitted in evidence on payment of the duty with which the same is chargeable, ....... together with a penalty of ...." There is no dispute that the letter of cover is an "instrument." Schedule I of the Act specifies the duties payable on various instruments. Article 47 of the Schedule specifies the duties chargeable on various kinds of policies of insurance. Section B of this article deals with fire insurance policies and specifies various duties as payable in respect of various kinds of policies of fire insurance for divers amounts, the minimum duty chargeable on policy of insurance under this article being fifty naye paise. Now this article contains at the end a general exemption which is in these words: GENERAL EXEMPTION. "Letter of cover or engagement to issue a policy of insurance: Provided that, unless such letter or engagement bears the stamp prescribed by this Act for such policy, nothing shall be claimable thereunder, nor shall it be available for any purpose, except to compel the delivery of the policy therein mentioned".;