CHAPTER 9

AUDIT AND CONTROL OF STAMP REVENUE IN THE PUNJAB

            The following instructions for audit and control of stamp revenue in the Punjab , are issued (  Punjab Government U.O. No. 418-P . F –47-S., dated 19th  May 1933) by the Governor  in Council sitting with his Ministers, the High Court of Judicature at Lahore, and the Financial Commissioners in their judicial capacity, for the guidance of all officers and courts under their respective control:-

RULES

1.                  These rules shall be termed “ The Punjab Stamp Audit Instructions , 1933”

2.                  There shall be appointed stamp auditors for the purpose of the audit of every document requiring a stamp which is presented to a court of law other than the High court or a public officer.

3.                  The Financial commissioner as the Chief Controlling Authority will determine the districts within the jurisdiction of each auditor and fix his head quarters. The auditors shall be under the direct control of the Commissioner of the division in which they are from time to time operating and shall be authorised by the collector in writing in the term of section 73 of the Indian Stamp Act.

4.                  The auditor shall prepare a bi-monthly programme of his tour by districts and after obtaining the approval of the Financial commissioner give due notice to the Collector of the district concerned and the Commissioner of the division of his forthcoming visit .

The auditor shall spend the least possible time on travelling and more time on actual audit work. He shall visit each district in his charge once a quarter and spend about eight days at the head – quarters of a  district and two days at tahsil .

5.                  The auditor shall, on visiting a district, audit all fresh institutions , documents and files pending or otherwise in all courts and registration and other offices including record rooms. Such inspection shall be from the date on which the last audit terminated.

            The auditor shall, in particular, see that the stamps used are genuine and have not been removed from files and re-used.

6.                  Every person described in section  33 of the Indian stamp Act and every public official referred to in section 6 of the curt-fees Act shall maintain a register of stamp deficiencies in form S.A.2 . The collector  shall , in addition to the register in Form S.A. 2. Maintained by him in respect of his own court,  maintain a register in Form S.A. 5 of  documents sent to him under section 38 of the stamp Act, These registers shall be maintained in respect of all deficiencies whether found in audit or independently .

7.                  The auditor shall examine the register in Form No. S.A. 2 maintained by the court or office with a view to seeing that it is properly maintained and that collections are made not only on account of deficiencies detected in audit but on account of deficiencies detected independently. He shall also examine the  register maintained by the collector in Form S.A. 5

8.                  Once a case has been decided and consigned to the record-room , deficient court fees are not recoverable under the existing law’ instances, therefore , of such shout recoveries in court-fees as may be brought to light  in the general record – room will merely server the purpose of educating readers and moharrirs or taking disciplinary action against them. But deficiencies in stamp duty may be brought to the notice of the collector of the district with a view to action under s action 61 of the stamp Act.

9.                   The presiding officers of all courts and heads of offices will give the auditor access to all records and accounts, etc., and so far as lies in their power , assist him in the performance of his duties.

10.              In the course of his audit the auditor shall draw the attention of presiding officers of courts and heads of offices to documents before them which are insufficiently stamped, and shall advise them where necessary in relation to their powers and obligations as follows:-

(i)                  under the Stamp Act:--

(a)                To impound documents under section 33 of the stamp Act

(b)               To admit unstamped documents in evidence under section 35

(c)                To dispose of impounded documents under section 38. The collector may also ask the auditor  to note on cases coming before him under sections 39 to 43 and also seek any other assistance which he may consider necessary.

(ii)                under the court-fees act.:-

                                    To determine correct fee  leviable on any document . The auditor , if necessary , will discuss the point at issue with the presiding officer and , if required by him, be present at the discussion in court before orders are passed.

11.              The auditor will maintain for each district a register in Form S.A. 1 , in which he will note as it is discovered , each deficiency in stamp duty and court fees

12.              After discussion of his rough notes of audit with presiding officer or the head of office , the auditor will prepare his audit note and sent typewritten copies to the presiding officer or the head of the officer as the case may be, to the collector of the district concerned and to the commissioner of the division. This note will include a statement in Form S.A. 3 of deficiencies discovered, columns 1 and 6 to 15 will be left blank.

13.              The presiding officer of the curt or the head of the office shall transfer column 2 to 5 of Form S.A. 3 to his register S.A. 2 and proceed to take necessary action on the note . in cases where he does  not agree with the auditor or where he considers it necessary to hear the party concerned before passing orders, he shall, where possible, discuss the matter with the auditor . The presiding officers or head of the office will return the form S.A 3 to the auditor after completing columns 1,6 to 8 and noting in column 15, the cases , if any, in which he disagree with the auditor, but without necessarily completing columns 9-14 . The auditor after completing his register will return the form to the court or office and report to the collector any case in which the presiding officer or head of the office has been  unable to take the advice of the auditor . The collector ( if he thinks fit and after consulting the Financial commissioners, if necessary ) will take action under section 61 of the Stamp Act, or in the case of court-fees Act, draw the attention of the appellate court, or take other appropriate action in the case of other offices.

14.              All courts and offices shall , in addition to the account of recoveries effected by them in form S.A. 2 , show recoveries effected at the instance of the stamp auditor in columns 9 and 10 of Forms S.A. 2 and S.A. 3. Irrecoverable loss of stamp revenue is required to be written off under serial No.  1 of paragraph 20.17 j, page 185 of the Book of Financial Powers, and shall be entered in columns 11 and 12 of Forms S.A. 2 and S.A. 3. They shall also sent to the auditor at the end of each month, their copies of form S.A. 3  so that he may complete his returns of recoveries made at his instance from time to time and irrecoverable items written off, after which he will return the form to the court or office. If the court or office has sent a document to the collector under section 38 of the Stamp Act, it will have no concern with columns 9 to 12.

15.              Special attention shall be paid by the auditors to pauper suits and all their sages carefully watched while they are pending in courts. After their disposal the auditors shall  draw the attention of the collector to the court-fees realizable, and shall suggest to him what steps will ensure early realization. When a curt fails to pass an order for costs, the auditor shall advise the collector to move the court concerned under order 33 rule 12 , civil Procedure code . The auditors shall keep a register of all such cases in form S.A. 5

16.              The auditor shall, at the time of his visit to a district, inspect the applications for grant of refund of the value or renewal of spoilt and unused court-fee and non judicial stamps and register maintained by the refund clerk and report the result of his inspection to the collector of the district

The auditor shall also inspect the registers of stamp. Vendors and check their stock of stamps.

17.              The auditor shall bring to the notice of the collector defects in the vend arrangement and make suggestions where necessary for improvement of the arrangements .

18.              The auditors shall monthly submit  reports by districts to the Assistant secretary to Financial Commissioners through the collector and commissioner

            In these reports the auditor should give details of the period spent, and of the work done on each day, they should also state the total number of cases examined by them and note separately for each district the total number of deficient stamps duty discovered and recovered at their instance under the following heads:-

(1)               on plaints;

(2)               on copies’

(3)               on applications, etc;

(4)               on process fees;

(5)               on objection petitions;

(6)               on powers of attorney;

(7)               on security bonds , etc ,. Filed in courts;

(8)               on miscellaneous petitions in the English record room ; and

(9)               on document filed by the parties .

            The report shall be accompanied by a statement in form S.A. 4 showing district totals .

19.              In support of their claims for travelling allowance the auditors will obtain from the presiding officers of courts and collectors a certificate in form S.A. 6 and attach it to their monthly travelling allowance bills .

20.              The local Audit Department is relieved of the audit of stamp duty and court-fees.

            A brief account of the work done under this system shall be included by the Financial commissioners in their annual note on the stamp Administration.

F.Cs’. stereo No. 351                   (FORM S.A. 1)

District of ___________________________

Register of stamp deficiencies discovered by auditor ( auditors register)

 

 

BY COURT OR OFFICE

BY COLLECTOR

BY COLLECTOR

 

Amount recovered at the instance of the auditor .

Amount recovered at the instance of the auditor .

Amount recovered at the instance of the auditor .

 

SN

Court or office and name or presiding officer

No. of suits

Brief particulars  of suit or case

Deficiency in stamp duty or court fees discovered

State if has been sent to collector under section 38 of stamp Act.

Penalty if any under section 35 of the stamp Act.

duty

Penalty if any under section 35 of the stamp Act.

Duty

Penalty if any under section 35 of the stamp Act.

Duty

Penalty

REMARKS

 

(FORM S.A. 2)

District of _____________  Court or office___________________

Register of stamp deficiencies to be  maintained by courts and offices

 

RECOVERED

Amount written off as irrecoverable by competent authority

 

    BALANCE

 

SL No

No of suit

Brief particulars of suit or case.

Deficiency in stamp duty or court fees

If discovered in audit state date and serial number in Forms S.A. 3

State if has been sent to collector under section 38 of stamp Act.

Duty recoverable under section 35 of the Stamp act or under the court fees act.

Penalty imposed  under section 35 of the stamp Act.

Duty

Penalty

Duty

Penalty

Duty(Column 7,9 and 11)

Penalty  ( Column 8,10and 12)

REMARKS

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECOVERED

written off as irrecoverable by competent authority

BALANCE

 

Serial No.

No of suit

Brief particulars of suit or case.

Deficiency in stamp duty or court fees

 

serial number in register  S.A. 1

State if  sent to collector under section 33 of stamp Act.

Duty recoverable under section 35 of the Stamp act or under the court fees act.

Penalty imposed  under section 35 of the stamp Act.

Duty

 

Penalty

Duty

Penalty

Duty(Column 7,9 and 11)

Penalty  ( Column 8,10and 12)

REMARKS

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(FORM S.A. 3)

Note  of deficiencies recovered in audit to be submitted to court or office concerned with his inspection note by the auditor

District of _____________  Court or office___________________

(FORM S.A. 4)

District of _____________  Court or office___________________

Statement showing deficiencies in stamp duty and court fees discovered by ____________stamp auditor and recoveries made by courts and collectors  of the ____________districts during the month of ___________

             (to be submitted by the auditors to the financial commissioners monthly)

 

 

 

 

Total of Columns

 

Total of columns

BALANCE

 

 

Deficiencies in court fee-and stamp duty discovered during the month.

Deficiencies in court fee-and stamp duty discovered during the previous month.

2 & 4

3    &    5

Recoveries made by courts and collectors at the instance of the auditor during the month

Recoveries made during previous months

Amount written off as irrecoverable during the month

Amount written off as irrecoverable during the previous month

8,10,12 & 14

9, 11, 13 & 15

Colmun 6 column

 

 

District

Duty

Penalty

Duty

Penalty

Duty

Penalty

Duty

Penalty

Duty

Penalty

Duty

Penalty

Duty

Penalty

Duty

Penalty

Duty

Penalty

Remarks

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(FORM S.A. 5)

            District of ______________________________

Register of deficiencies discovered in stamp audit and dealt with by the collector

 

 

 

 

 

 

Serial No.

Serial No. in registers S.A.I

Court or office from which sent .

Section under which sent

Nature of deficiency

 

If discovered in audit state serial  no. register S.A. 1.

1

2

3

4

5

6

 

 

 

 

 

 

 

DEMAND

RECOVERED

WRITTEN OFF AS IRRECOVERABLE  

BALANCE

Duty

Penalty

Duty

Penalty

Duty

Penalty

Duty

Penalty

7

8

9

10

11

12

13

14

 

 

 

 

 

 

 

 

 

(  FORM S.A. 6)

              Certified that ________________________, Stamp auditor , started audit in this court / office on _______________________________________________ and audited the stamp and court – fee accounts of this  court or place/office for ____________________days

 

Place ________________                  

Dated________________                 

Signature of presiding Officer of

court, or Head Of office.