1[62. Penalty for executing etc. instrument not duly stamped. ––(1) Any
person who, with the intention to evade the duty, executes or signs otherwise
than as a witness any instrument chargeable with duty without the same being
duly stamped shall be punished with imprisonment for a term which shall not
be less than one month but which may extend to six months or with fine which
may extend to ten thousand rupees or with both :
Provided that when any penalty has been paid in respect of any instrument under section 35, section 40 or section 61, the amount of such penalty shall be allowed in reduction of the fine (if any) subsequently imposed under this section in respect of the same instrument upon the person who paid such penalty.
(2) If a security as defined under clause (h) of section 2 of the Securities Contract (Regulation) Act, 1956 (Central Act 42 of 1956), is issued without being duly stamped, the company issuing the same and also every person, who, at the time when it is issued, is the Managing Director, secretary or other principal officer of the company, shall be punishable with fine which may extend to twenty-five thousand rupees.
Provided that when any penalty has been paid in respect of any instrument under section 35, section 40 or section 61, the amount of such penalty shall be allowed in reduction of the fine (if any) subsequently imposed under this section in respect of the same instrument upon the person who paid such penalty.
(2) If a security as defined under clause (h) of section 2 of the Securities Contract (Regulation) Act, 1956 (Central Act 42 of 1956), is issued without being duly stamped, the company issuing the same and also every person, who, at the time when it is issued, is the Managing Director, secretary or other principal officer of the company, shall be punishable with fine which may extend to twenty-five thousand rupees.
1. Section 62 substituted by Act XII of 2011, s. 38.