Validity of signed 20 rupees bond
Puralli Poimagan
(Querist) 24 April 2017
This query is : Resolved
One of my friend signed a blank 20 ruppee bond with his business partner and left the business. Now he is starting a new business . He is just worried that if his old partner might cause some leagal issue with that signed bond. So I would like to know how long is the bond valid.
BAALASUBRAMANNYAMM
(Expert) 24 April 2017
There is no limitation date for usage for a Non-Judicial Stamp paper. You can use it any time. But if you want to cancel such a stamp paper, you have to surrender the same to Collector, for refund of amount within a period of six months from the date of purchase. Plz. go through the act, for further information.
Section 54 in The Indian Stamp Act, 1899
54. Allowance for stamps not required for use.—When any person is possessed of a stamp or stamp which have not been spoiled or rendered unfit or useless for the purpose intended, but for which he has no immediate use, the Collector shall repay to such person the value of such stamp or stamps in money, deducting 93 [ten naye paise] for each rupee or portion of a rupee, upon such person delivering up the same to be cancelled, and proving to the Collector’s satisfaction—
(a) that such stamp or stamps were purchased by such person with a bona fide intention to use them; and
(b) that he has paid the full price thereof; and
(c) that they were so purchased within the period of six months next preceding the date on which they were so delivered: Provided that, where the person is a licensed vendor of stamps, the Collector may, if he thinks fit, make the repayment of the sum actually paid by the vendor without any such deduction as aforesaid.
kavksatyanarayana
(Expert) 24 April 2017
There is no limitation date for usage for a Non-Judicial Stamp paper. he can use it any time. It is advisable to get prepare the retirement deed if whether it is registered or not and take back the signed stamp paper.
Rajendra K Goyal
(Expert) 25 April 2017
It can create trouble in future.
He should try to take it back.
If not possible and he has got the details of the stamp paper (no.,who purchased, by whom purchased and date of purchase) he should send registered letter / notice to partner for not using it at any time.
He can get the details of purchase from the stamp agent otherwise.
