Section 42 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 42 is the closing step of the impounding sequence. After duty, or duty and penalty, has been paid under section 35, 40 or 41, the instrument is endorsed with the amounts and the payer's details, and from then it can be used as if it had been duly stamped. The section also governs the return of the instrument and sets a one-month hold.
Under section 42(1), where duty and penalty (if any) have been paid under section 35, 40 or 41, the person admitting the instrument in evidence, or the Collector, certifies by endorsement that the proper duty, or the proper duty and penalty, has been levied, stating the amount of each and the name and residence of the person paying. Under section 42(2), the endorsed instrument is admissible in evidence, may be registered, acted upon and authenticated as if duly stamped, and is delivered on application to the person from whose possession it came, or as he directs. An instrument admitted on duty and penalty under section 35 is not delivered before one month from the date of impounding, or longer if the Collector certifies that further detention is necessary.
Position in the Act
This article follows the consolidated text of the Act consulted (latest amendment shown: Act 13 of 2021); later amendments should be checked. Stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed, so the State of execution must be checked. This article explains the central Act only. If you are holding a document that has been through impounding and payment, our legal due diligence service can check the endorsement and the steps still open to you.
Section 42 completes the path begun in Section 33 (impounding), Section 35 (admission on duty and penalty), Section 40 (the Collector's power) and Section 41 (accident, mistake or urgent necessity).
Sub-section (1): the endorsement
"When the duty and penalty (if any), leviable in respect of any instrument have been paid under section 35, section 40 or section 41, the person admitting such instrument in evidence or the Collector, as the case may be, shall certify by endorsement thereon that the proper duty or, as the case may be, the proper duty and penalty (stating the amount of each) have been levied in respect thereof, and the name and residence of the person paying them."
An endorsement therefore carries four things:
- a statement that the proper duty, or the proper duty and the penalty, has been levied;
- the amount of each, where both were paid;
- the name of the person who paid; and
- that person's residence.
The officer who endorses depends on the route: the person who admitted the instrument in evidence (section 35) or the Collector (sections 40 and 41). The word "shall" makes the endorsement mandatory, and the record of the payer's name and residence is useful later. A person who paid and was not the person bound to bear the cost may need it to claim recovery under section 44; see Sections 43 to 45.
Sub-section (2): effect and delivery
What the endorsement allows
"Every instrument so endorsed shall thereupon be admissible in evidence, and may be registered and acted upon and authenticated as if it had been duly stamped." These are the four things that section 35 forbids for an instrument not duly stamped (admitted in evidence, acted upon, registered, authenticated). After the endorsement the bars no longer apply.
Delivery of the instrument
The instrument "shall be delivered on his application in this behalf to the person from whose possession it came into the hands of the officer impounding it, or as such person may direct". Three points follow.
- Delivery is on application. The person does not receive the instrument automatically.
- It goes to the person from whose possession it came, or to someone he names.
- The word "shall" makes delivery mandatory, subject to the two provisos.
The provisos
Proviso (a): the one-month hold
"No instrument which has been admitted in evidence upon payment of duty and a penalty under section 35, shall be so delivered before the expiration of one month from the date of such impounding, or if the Collector has certified that its further detention is necessary and has not cancelled such certificate."
| Instrument | Hold before delivery |
|---|---|
| Admitted in evidence on duty and penalty under section 35 | Not before one month from the date of impounding |
| Same, where the Collector has certified that further detention is necessary and has not cancelled the certificate | Not while that certificate stands |
| Instruments dealt with under sections 40 or 41 | The proviso does not name them |
Two readings of the wording should be noted. The one-month period runs from impounding, not from payment. And the proviso speaks of an instrument admitted on duty and penalty under section 35 only, so it names no hold for the other two routes. The text consulted does not say anything further about them.
Proviso (b): the Code of Civil Procedure
"Nothing in this section shall affect the Code of Civil Procedure (XIV of 1882), section 144, clause 3." The reference is to a Code of 1882 and is printed in the copy as it appears in the original. It has not been brought up to date, and a reader should check the current law for the corresponding provision. No replacement is named here. A footnote marker appears in the copy next to the word "the" at this point, but no matching footnote is printed; the proviso is quoted as printed.
Worked example
During a recovery suit, the judge impounds a loan agreement on 5 June because it is short of stamp, and admits it in evidence on payment of the deficient duty and a penalty. Under section 42(1) he certifies on the agreement the amount of duty and the amount of penalty and the name and residence of the person who paid, say Sunil Verma of Indore. The agreement can now be registered, acted upon and authenticated. Under proviso (a), the agreement is not delivered back to the person from whom it came before 5 July, or longer if the Collector has certified further detention and has not cancelled the certificate.
Practical points
- Check the endorsement. It should state the duty and penalty amounts separately, the name and residence of the payer.
- Keep the record of payment. The endorsement is the record on the instrument; keep your own record of who paid and when.
- Apply for delivery. If you want the original back, apply for it after the hold period.
- Registration. The endorsement removes the stamp bar to registration, but registration has its own rules; see documents compulsorily registrable under section 17 of the Registration Act, 1908.
- Recovery. If the person who paid is not the person bound to bear the expense, section 44 may apply.
Need help after an instrument has been impounded?
An endorsement does not fix every problem with a document, and the one-month hold can affect your timetable. Our legal due diligence team can examine the endorsement, the stamping history and the next step for you.
Key takeaways
- After duty and penalty are paid under section 35, 40 or 41, the instrument is endorsed with the amount of each and the name and residence of the payer.
- An endorsed instrument is admissible in evidence and may be registered, acted upon and authenticated as if duly stamped.
- It is delivered on application to the person from whose possession it came, or as he directs.
- An instrument admitted on duty and penalty under section 35 is not delivered before one month from impounding, or while the Collector's detention certificate stands.
- The reference to the Code of Civil Procedure of 1882 is printed as in the original; check the current law.
Read next
- Sections 43 to 45 of the Indian Stamp Act, 1899: prosecution, recovery and refund of penalty
- Section 40 of the Indian Stamp Act, 1899: Collector's power to stamp impounded instruments
- Section 35 of the Indian Stamp Act, 1899: instruments not duly stamped inadmissible in evidence
- Impounding of instruments not duly stamped
Disclaimer: Based on the consolidated text of the Indian Stamp Act, 1899 published by the Department of Revenue, whose latest amendment shown is Act 13 of 2021, as consulted on 2 October 2026. Only the central text is covered: stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed, and State amendments, rules, notifications and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.