Section 42 Stamp Duties Act

Section 42 of Stamp Duties Act 1939 is about Penalty for issuing any unstamped bill or note. It provides as follows:

(1) Every person who issues, endorses, transfers, negotiates, presents for payment, or pays any bill of exchange or promissory note liable to duty and not being duly stamped shall be guilty of an offence and liable on conviction to a fine of twenty naira, and the person who takes or receives from any other person any such bill or note either in payment or as a security, or by purchase or otherwise, shall not be entitled to recover thereon, or to make the same available for any purpose whatever: Provided that if any bill of exchange payable on demand or at sight or on presentation, or within three days after date or sight is presented for payment unstamped, the person to whom it is presented may affix thereto an adhesive stamp of two kobo, and cancel the same, as if he had been the drawer of the bill, and may thereupon pay the sum in the bill mentioned, and charge the duty in account against the person by whom the bill was drawn, or deduct the duty from the said sum, and the bill shall, so far as respects the duty, be deemed valid and available.

(2) The proviso to subsection (1) of this section shall not relieve any person from any fine or penalty incurred by him in relation to such bill.

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See also  Section 188 of the 1999 Constitution of Nigeria (Updated)

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