ORDER
R. Banumathi, J.
Page 2995
1. In this Writ Petition, a short, but an important issue arises regarding the sale of Judicial Stamp Papers and Copy Stamp Papers to Practising Advocates.
2. The Petitioner is a Practising Advocate at Attur, Salem District and he is also in the panel of Legal Advisors to few Nationalised Banks. The Petitioner has made an indent on 22.12.2000 for the purchase of Copy Stamps to the value of Rs. 2,000/-. The third Respondent by the impugned order dated 29.12.2000 made in A.Thi.Mu.6688/2000/D, returned the application holding that an individual is entitled to purchase only Non-Judicial Stamp Papers and that Judicial Stamp Papers and Copy Stamps could be made available through only the licensed vendors, which is challenged in this Writ Petition.
3. According to the Petitioner, sale of Court Fee Stamps and Non Judicial Stamps and Copy Stamp Papers are made available only through licensed vendors, who have resorted to selling the adhesive stamps and Copy Stamp Papers at a premium of 25p for every rupee and therefore, the Petitioner is forced to pay premium which is being demanded by the licensed vendors.
4. Challenging the impugned order, onbehalf of the Petitioner, it was contended that because of the refusal to sell stamps to the Petitioner, he is constrained to purchase stamps from the Licensed Vendors at Premium demanded by them. It was further contended that for selling of stamps, there cannot be any distinction between Non Judicial Stamps and Judicial Stamp Papers. The Petitioner seeks direction to the Respondents to sell Judicial Stamp Papers of all values and Copy Stamps to the Petitioner in accordance with the Standing Order 77(ii).
5. The Respondents have filed counter stating that the purchase of Court Fee labels and Copy Stamp Papers was denied by the third Respondent on the ground that Judicial and Non Judicial Stamps should be sold only through licensed vendors and the same falls under the purview of “Judicial” as per the provision contained in paragraph 2-1 under Chapter I of Standing Order of Tamil Nadu Stamp Manual. According to the Respondents, sale of “Copy Stamps” by persons other than licensed vendors of stamps is not prohibited, since copy stamps are neither Judicial nor Non Judicial and their sale does not fall under the provision of the Stamp Act or the Court Fees Act. Denial of request for purchase of Copy Stamps to the value of Rs. 2,000/- was as per the provisions contained in the Stamp Manual paragraph 80 Chapter V of the Standing Orders of the Tamil Nadu Stamp Manual.
6. Section 74 of the Indian Stamp Act confers upon the State Government to make rules for regulating –
(a) the supply and sale of stamps and stamped papers;
[(aa) the proper use of stamps and Stamp Papers and the prevention of misuse of such stamp and Stamp Papers;]
(b) the persons by whom alone such sale is to be conducted; and;
(c) the duties and remuneration of such persons:
Provided that such rules shall not restrict the sale of [ten paise or five paise] adhesive stamps.
Page 2996
7. As per Rule 2, the Rules apply to all classes of Non-Judicial Stamps other than postal stamps, match excise banderols, Central excise revenue stamps, tobacco excise duty lables, customs revenue stamps and copy Stamp Papers.
8. Under Section 69 of the Indian Stamp Act, the Government has the right and power relating to sale of stamps. Rule 19 of the Tamil Nadu Stamp Rules, deals with appointment of ex-officio Stamp Vendors. Rule 19 reads as under:
Rule 19.- The treasurer and such other officers as the Board of Revenue or the Government may appoint, shall be ex-officio vendors in each local depot. Such persons as may be licensed by Collectors, D.R.O’s or other Officers empowered by the Board of Revenue or the Government to grant licences, shall be licensed vendors. Ex-officio vendors shall sell only such stamps as they may be directed to sell by the Board of Revenue or the Government. Licensed vendors shall sell only such stamps as are indicated in their licences. Sales to the public or to licensed vendors shall not be made direct from the store under double-lock, such sales being made by the ex-officio vendor from the supply entrusted to him for this purpose to be kept by him under single-lock as prescribed in the following rules.
9. As per Rule 20, the Treasury Officer shall take out and supply the quantity required from the stores under Double Lock, check the correctness of the entries made in the Double Lock register, Initial them and return the Double Lock Register into the Double Lock Store. When it is necessary to make issues more than once in one day, in prescribed checks need to he applied to each subsequent time of issue, only to the particular descriptions stamps supplied from the Double Lock.
10. According to the Respondents, Attur Sub Treasury is in the control of Double Lock Officer and they have no retail sales counter and so, it is not possible for them to sell stamps to the public instead of Stamp Vendors and this procedure is followed in all the Sub Treasury all over Tamil Nadu. That prevailing practice in all the Sub Treasury is not substantiated by the Respondents.
11. The Government has framed the Rules for the supply and distribution of stamps in the State of Tamil Nadu. Rule 28 provides for sale of Stamps by ex-officio vendors. Rule 28 [1, 2 and 3] read as under:
28. The following rules have been framed by the State Government regarding sales of Stamps by ex officio vendors:
(1)Ex-officio vendors shall sell only such stamps as they ay be directed to sell by the Chief Controlling Revenue Authority or Government.
(2)Every ex-officio vendor selling stamps to any person who is not a licensed vendor shall, with his own hand, write on the face of every stamp paper which he sells, just below the stamp impression, a serial number as determined by the orders of the Chief Controlling Revenue Authority or Government, the date of sale, the name and residence of the purchaser, and if the stamp is purchased for the use of any person other than the person who tenders the money for it, the name and residence of such other person also and value Page 2997 of the stamp in full, in words and his own ordinary signature; at the same time, he shall make corresponding entries in a register to be kept by him in such form as the Chief Controlling Revenue Authority or Government may prescribe.
Any such vendor who shall knowingly make a false endorsement on the stamp sold or a false entry in his register renders himself liable to prosecution under the Indian Penal Code:
Provided that in the case of copy Stamp Papers and hundies, the endorsement shall be made on the back.
(3)Every ex-officio vendor shall, without delay, deliver any stamp which he has in his possession for sale on demand by any person tendering the value in any currency which would be accepted on behalf of the Government by the Collector of the district.
12. Under Rule 25 of the Stamp Rules, Chief Controlling Revenue Authority, may, at his discretion, create the post of licensed vendors for the sale of stamps. As per the standing orders, use of Non Judicial Stamp Papers is regulated by Act 2 of the Indian Stamp Act, 1899. Use of Judicial Stamp Papers is regulated by the provisions of Court Fees Act, 1870, Central Act VII of 1870.
13. As per the Standing Orders B.P. No. 1772-R, Mis, dated 7th August, 1903, Sale of “Copy Stamps” by persons other than licensed vendors of stamps is not prohibited. These stamps are neither Judicial nor Non Judicial and their sale falls neither under the Stamps Act nor the Court Fees Act. In the Counter affidavit, it is stated that purchase of copy stamps to the value of Rs. 2,000/- presented by the Petitioner was refused as per the provisions contained in Stamp Manual paragraph 80 Chapter V of the Standing Orders of the Tamil Nadu Stamp Manual.
14. While Non Judicial Stamp Papers are sold to all by the Sub Treasury, it is stated that sale of Non Judicial Stamps is restricted only through licensed Stamp Vendors. Onbehalf of the Respondent, it was submitted that such restriction is in the interest of Administration of Justice and for the purpose of prevention of misuse of the Judicial Stamp Papers.
15. The learned Counsel for the Petitioner has contended that the restriction regarding the sale of Judicial Stamp Papers and the Copy Stamp Papers to the Practising Advocates is not well founded. It is learnt that for some districts, Practising Advocates directly indent Judicial Stamp Papers and Copy Stamp Papers. In some of the Districts, indent of the Practising advocates are denied. There is no uniform practice in the State regarding sale of Judicial Stamp Papers and Copy Stamp Papers to the Practising Advocates.
16. Judicial Stamp Papers represent the fees payable by the persons for business in the Courts of Justice and Public Offices to which Tamil Nadu Court Fees and Suits Valuation Act, 1955 applies. Sale of Judicial Stamp Papers to individuals may be restricted in the interest of Administration of Justice, but the question is, ‘whether such restriction can be applied to the Practising Advocates?’.
17. In consideration of the larger issue involved and the sale of Judicial Stamp Papers represent the business in the Court of Justice and Public Offices, Page 2998 I am of the view that an authoritative decision is called for by a Division Bench. Hence the matter may be placed before My Lord, the Honourable, the Chief Justice for passing necessary orders.
18. The following points of reference are made:
(i)Whether the restriction of sale of Judicial Stamp Papers to the individuals are applicable to the Practising Advocates also ?
(ii)Whether the Practising Advocates can directly indent for Judicial Stamp Papers and Copy Stamp Papers from the ex-officio Stamp Vendors ?
(iii)If the Practising Advocates are so entitled for indent, in the interest of administration of justice, how the sale of Judicial Stamp Papers and the copy Stamp Papers to the Practising Advocates/Bar Association could be regulated ?