Indian Stamp Act, 1899
19. Bills and notes drawn out of India
The first holder in 3[India] of any bill of exchange 19[payable otherwise than on demand], 20[* * *] or promissory note drawn or made out of 3[India] shall, before he presents the same for acceptance or payment, or endorses, transfers or otherwise negotiates the same in 3[India], affix thereto the proper stamp and cancel the same:
(a) if, at the(time any such bill of exchange 20[* * *] or note comes into the hands of any holder thereof in 20[India], the proper adhesive stamp is affixed thereto and cancelled in manner prescribed by section 12 and such holder has no reason to believe that such stamp was affixed or cancelled otherwise than by the person and at the time required by this Act, such stamp shall, so far as relates to such holder, be deemed to have been duly affixed and cancelled;
(b) nothing contained in this proviso shall relieve any person from any penalty incurred by him for omitting to affix or cancel a stamp.