Jagat Narayan, J. - (1.) The facts giving rise to this reference are these. The plaintiff instituted a suit for the recovery of a sum of Rs. 3,717/- on 5-2-54 on the basis of a pronote dated 22-7-52 for a sum of Rs. 3250/-. This pronote was executed at Sikar which was formerly in the erstwhile State of Jaipur. Under the Jaipur Stamp Act which was in force in Sikar on the date of the execution of the pronote it was chargeable with stamp duty of -/5/- annas. The promissory note in suit however bore a stamp -/4/-annas only. The trial court dismissed the suit holding that the promissory note was inadmissible in evidence being insufficiently stamped. On appeal the learned District Judge held that the Indian Stamp Act had come into force on 15th May 1952 by virtue of the Rajasthan Stamp Law (Adaptation) Act, 1952 and that the document was properly stamped under the Stamp Act which was in force on the date of its execution. He accordingly remanded the case to the trial court for decision in accordance with law.
(2.) Against the above order of remand the present appeal was filed by the defendant. The learned Single Judge who heard the appeal held that by virtue of the second proviso to Section 6 the Jaipur Stamp Act was in force in Sikar with the regard to the rates of stamp duty payable on bills of exchange, cheques, promissory notes, bills. He was however inclined to the view that this proviso was invalid as it purported to enforce different laws in different areas of Rajasthan. He accordingly referred the case to a Division, Bench.
(3.) The rates of stamp duty in respect of bills of exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts fall under item 91 of List I of Seventh Schedule of the Constitution. As such the State of Rajasthan was not competent to legislate in respect of these items. That is why the rates of stamp duty prevailing in different parts of the State at the time of the enactment of the Rajasthan Stamp Law (Adaptation) Act, 1952, were left intact.;