The Chartered Mercantile Bank of India, London, and China vs Sadayappa Chetty – clr volume 3 page 053

In the case between The Chartered Mercantile Bank of India, London and China and Sadayappa Chetty, the court addressed whether promissory notes bearing the correct stamp duty, but lacking proper cancellation of the stamps as required by section 9 of the Stamp Ordinance (No. 23 of 1871), could be admitted in evidence under the Ordinance and under Ordinance No. 3 of 1890. The court held that such notes, though not “duly stamped” due to imperfect cancellation, may nevertheless be admitted upon payment of the prescribed penalty under the remedial provisions of the Stamp Ordinance. The principle reaffirmed was that instruments bearing correct stamp value but incomplete cancellation can be brought into compliance through statutory mechanisms. This decision relied on the express terms of the Stam