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Report No. 67

Chapter 24

Rules-Sections 74 to 76

24.1. Desirability of combining the sections.-

Departing slightly from the sequence of the sections, we would, at this stage, like to deal with, the rule-making power as contained in sections 74 to 76. At the outset, we would like to state that we do not see any need at the present day for dealing with this topic in three sections. When the Act was originally enacted, this scheme was considered necessary, presumably because at one stage section 74 vested the power in the local government) later, the provincial government); subject to the control of the Governor General-in-Council, while section 75 vested the power in the Governor General-in-Council. This is no longer the case now.

It is, therefore, proper to combine section 74 (rule relating to the sale of stamps) and section 75 (rules generally to carry out the Act). As regards section 76 (publication of rules), it refers to "rules made under this Act", and it can be argued that it is wider than the subject matter of sections 74 and 75, inasmuch as it may, to cite one example,1 take in rules under section 9. Even if that is so, there is hardly any strong reason for retaining it as a separate section, particularly because, in view of the recommendation which we are going to make concerning that section,2 its text will be considerably shortened.

1. See also sections 10, 16 and 18.

2. See section 76, infra.

24.2. Section 76(2) to be deleted.-

So much as regards the arrangement of the sections. As to the amendment to be made therein, we have comments to offer only on section 76(2), which provides that rules made under the Act shall, upon their publication, "have effect as if enacted by this Act." According to current doctrine on the subject, the quoted words can add nothing to the validity of the rules. They are out of tune with current legislative usage. Being unnecessary verbiage, they should be omitted. In fact, they create confusion. Whatever may have been the earlier assumptions, today it cannot be asserted that rules not consistent with the parent Act can be valid. Accordingly, we recommend the substitution of one section for all the three sections, as under:-

"74(1) The State Government may, by notification in the Official Gazette, make rules to carry out generally the purposes of this Act, and may by such rules prescribe the fines, which shall in no case exceed five hundred rupees, to be incurred on breach thereof.

[Existing section 75 and section 76(1)]

[Existing section 76(2) omitted]

74(2). Without prejudice to the generality of the power conferred by sub-section (1), and in particular, rules made thereunder may regulate,

(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 remuneration of such persons:

Provided that such rules shall not restrict the sale of ten naye paise or five paise adhesive stamps.

[Existing section 34]

Indian Stamp Act, 1899 Back

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