IN THE HIGH COURT OF GUJARAT AT...

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

DISTRICT: DAHOD

SPECIAL CIVIL APPLICATION NO. OF 2019

In the matter under Articles 14,19(1)(g), 21, 226

and 227 of the Constitution of India,

And,

Under the Bombay Stamp Act, 1958 and Rules

framed thereunder:

And,

In the matter between:

1. Nileshkumar Motilal Valand

Aged: ______, Gender: Male

Residing at Limdi, Tadl: Zalod,

Dist. Dahod.

2. Rahul Pradipsinh Jodha Rathod


Residing at Zalod, Tal: Zalod,

Dist. Dahod.

3. Farukbhai Anishbhai Kamal


Residing at Zalod, Dist. Dahod.

Ba:r & Bench (www.barandb,ench.com)

4. Jasvantlal Ramanlal Desai


Residing at Zalod,

Dist. Dahod.

5. Rangrej Salimbhai Mohd’husen


Residing at Zalod,

Dist. Dahod.

6. Shabbirbhai Hamidbhai Chunawala


Residing at Dahod,

Dist. Dahod.

7. Ashvinbhai Kalubhai Bhuriya


Residing at Namikharaj

Dist. Dahod.

8. Kharadiya Sanjaybhai Mavlabhai


Residing at Zalod,

Dist. Dahod.

9. Dalal Abbasbhai Sabbirbhai



Residing at Huassai Maholla, Dadho

Dist. Dahod.

10. Chavada Rahulkmar Ganeshbhai


Residing at Dahod,

Dist. Dahod.

11. Chintan Mohitkumar Parikh


Residing at Dahod,

Dist. Dahod.

12. Chauhan Maheshkumar Shankarbhai


Residing at Navagam,

Tal & Dist. Dahod.

13. Nakum Mukeshbhai Jivabhai


Residing at Rachorda,

Tal & Dist. Dahod.

14. Parmar Jayendramumar Vasantlal


Residing at Himala,


Tal & Dist. Dahod.

15. Shah Ananl Nikhilkumar


Residing at Dahod,

Dist. Dahod.

16. Panchal Bhanuprasad Shankarlal


Residing at Gamla,

Tal & Dist. Dahod.

17. Ishwarlal Ratanlal Valand


Residing at Limbdi,

Tal & Dist. Dahod.

18. Rasubhai Zitharabhai Damor


Residing at Chokalia Tal: Zalod,

Dist. Dahod.

19. Kanubhai Ratanbhai Parmar


Residing at Limbdi, Tal: Zalod,

Dist. Dahod.


20. Hursing Fatabhai Nisorata


Residing at Zalod,

Dist. Dahod.

21. Pareshkumar Lalchand Pancha


Residing at Zalod,

Dist. Dahod.

22. Samudabhai @ Shambhubhai Madiyabhai


Residing at Raniar Inami, Tal: Zalod,

Dist. Dahod.

23. Ashvinkumar Rajiabhai Pargi


Residing at Mormohudi, Tal: Fatepura,

Dist. Dahod.

24. Gavjibhai Bhurobhai Barjod


Residing at Valundi, Tal; Fatepura,

Dist. Dahod.

25. Pradipkumar Bhomorlal Shah



Residing at Fatepura, Tal: Fatepura,

Dist. Dahod.

26. Sabbir Abdulla Sunelwala


Residing at Fatepura,

Dist. Dahod. … Petitioners

VERSUS

1. The State of Gujarat

Notice to be served through

The Secretary

Government of Gujarat

Department of Revenue

Having his office at

9th Floor, Block No.11

Sardar Patel Complex

Gandhinagar.

2. Inspector General of Registration

Office of the Inspector General of Registration


Stamp and Registration Bhavan,

KH-5 Circle,

Sector 14,Gandhinagar


3. Superintendent of Stamp


1st Floor,

Stamp and Registration Bhavan,

KH-5 Circle, Sector 14,

Gandhinagar.

4. Deputy Collector and Stamp

Duty Valuation, Dahod. … Respondents

To,

The Hon’ble Chief Justice and the

Other Hon’ble Judges of the High

Court of Gujarat, Ahmedabad.

The humble petition of the

Petitioner above named:

MOST RESPECTFULLY SHEWETH THAT:

1. The Petitioner/s are the national and citizen of

India and therefore entitled to the protection of

fundamental right enshrined in part III of the

constitution of India. The Respondents are the state

within meaning of Article 12 of the Constitution of

the India and therefore amenable to the writ

jurisdiction of this Hon’ble High Court.

2. The petitioners are residing at the address

mentioned in the title clause. The petitioners are

holding the license of the stamp vendor duly issued

by the competent authorities. One of the license is

annexed hereto and marked as Annexure A to the

petition. Some of the petitioner had in past


preferred writ petition before this Hon’ble Court

being SCA No.9422 of 2014 which was allowed by

this Hon’ble Court vide order dated 21.1.2015, a

copy whereof is annexed hereto and marked as

Annexure B.

3. By way of this petition under Article 226 of the

Constitution of India the Petitioner/s prays for a

writ of mandamus or any other appropriate writ

order or direction to quash and set aside the

notification dated 23.08.2019 bearing no

GHM/2019/75/M/STP/122019/1035/H.1 issued by

the Respondent No 1. Annexed hereto and marked

as ANNEXURE "C" is the copy of the Notification

dated 23.08.2019 bearing no

GHM/2019/75/M/STP/122019/1035/H.1 Issued by

the Respondent No. 1. The petitioners also seek an

appropriate writ order or direction to quash and set

aside the circular dated 09.09.2019 issued by the

Respondent No.2. Annexed hereto and marked as

ANNEXURE "D" is the copy of the Circular dated

09.09.2019. The petitioners also seek an


aside the circular dated 16.09.2019 bearing no

STP/LAW/51/2019/14967-15002 issued by the

Respondent no 2. Annexed hereto and marked as

ANNEXURE "E" is the copy of the circular dated

16.09.2019.

4. It is submitted that by the aforesaid impugned

action drastic changes are made in the existing The

Gujarat Stamp Act,1958 (“the Act” for short) and the

whole class of existing stamp vendors are brought to

an end and as against that provisions are made by

making changes in Rule 13 of the Gujarat Stamp

(Payment of Duty by means of E Stamping) Rules,

2014 (“E Stamping Rules of 2014” for short)

enabling a whole new class of persons including


stamp vendors, charted accountants, company

secretary, C & F agents, common service centers,

Non banking financial company, licensee notary etc

are made eligible for the appointment/selection as

an Authorised Collection Center (“ACC” for short).

That further by making changes/addition of Rule

8(A) in Gujarat Stamps Supply and Sales Rules,

1987 (“Stamp supply and sales Rules” for short) a

decision has been made to stop the sales of Non

judicial stamp paper by the stamp vendors. It is

submitted that thus by new changes the whole class

of existing stamp vendors are eliminated and the

sales of non judicial stamp papers are also stopped.

It is submitted that further by changes in Rule 13 of

E stamping Rules, a whole new class of persons

including stamp vendors, charted accountants,

company secretary, C & F agents, common service

centers, Non banking financial company, licensee

notary etc are made eligible for their selection as an

Authorised Collection Center and they shall be

authorized to perform the function of E stamping. It

is submitted that even there has been anomaly and

ambiguity in the rate of commission also and it

emerges that the existing rate of 3 % on stamp

papers of 100 Rs and 1% on stamp papers above

100 Rs are still going to be reduced. It is submitted

that the existing rules itself are on a very much

lower level and still it has been made to be reduced

at a considerate level and no definite scheme has

been provided.

5. The petitioners state that as per the provisions of

the Sales Rules, the discount is being paid to each

stamp vendor on the face value of the stamp paper.

For selling of the stamp paper up to Rs. 100, the

discount given is 3%, whereas, in case of selling of

the stamp paper beyond Rs. 100/-, the flat discount


of 1% of the face value of the stamp is given to the

each stamp vendor.

6. The petitioners state that section 2H of the Act

defines the term “duly stamped” which reads as

follows:

2H: "duly stamped" as applied to an instrument means that the instrument bears an adhesive or impressed stamp of not less than the proper amount and that such stamp has been affixed or used in accordance with the law for the time being in force in the State;

7. The petitioners state that the section 2K of the Act

defines the term “impressed stamp” which reads as

follows:

2K:

"impressed stamp" includes,-

(i) labels affixed and impressed by the properofficer;

(ii) stamps embossed or engraved on stampedpaper;

[(iii) impression by franking machine;]

(iv) Receipted challan or the certif icate issuedunder e-stamping system or any other systemas may be prescribed by rules.",

8. The petitioners state that the section 10 of the Act

provides for mode of payment of the stamp duty.

The section 10 of the Act reads as follows:

10. Duties how to be paid. –

(1) Except as otherwise expressly provided inthis Act, all duties with which any instrumentsare chargeable shall be paid, and such paymentshall be indicated on such instruments, bymeans of stamps,-

(a) according to the provisions herein contained;or


(b) when no such provision is applicable,thereto, as the State Government may, by rules,direct, refer Annexure-A.

(2) The rules made under sub-section (1) may,among other matters, regulate,-

(a) in the case of each kind of instruments, thedescription of stamps which may be used;

(b) in the case of instruments stamped withimpressed stamps, the number of stamps whichmay be used.

[(2A) The Chief Controlling Revenue Authority may authorise, subject to such conditions as it may deem fit, the use of franking machine for making impressions on instruments chargeable with duties, to indicate payment of duties on such instruments.

(2B)(i) Where the Chief Controlling Revenue Authority or Superintendent of Stamps authorised by him in this behalf is, having regard to the number of instruments executed by a person and the amount of duty charged thereon, satisfied that it is necessary in the public interest so to do, it or he may by an order in writing, authorise such person to use franking machine subject to such conditions as laid by general or special order in this behalf by the Chief Controlling Revenue Authority.

(ii) Where there is breach of any of conditions ofthe authorisation, the authority grantingauthorisation under clause (i) may revoke theauthorisation.

(iii) The Chief Controlling Revenue Authoritymay, by order, determine the procedure forregulating the use of franking machine. "and forother systems specified in entry (iv) of clause (k)of section 2"]

[(3) (a) Notwithstanding anything contained in sub-section (1), where,

(i) the State Government, in relation to any areain the State, or

(ii) the Collector, in relation to any area in thedistrict under his charge, is satisfied that onaccount of temporary shortage of stamps in anyarea, duty cannot be paid, and payment of dutycannot be indicated on such instruments theregistration of which is compulsory under theRegistration Act, 1908(16 of 1908), by means ofstamps, the State Government, or, as the casemay be, the Collector, may, by notif ication in


the Official Gazette, direct that, in such area and for such period as may be specified in such notif ication, the duty may be paid in cash in any Government treasury or sub-treasury and the officer-in-charge of such treasury or sub-treasury shall, on production of a challan evidencing payment of stamp duty in the Government treasury or sub-treasury, certify by endorsement on the instrument in respect of which the stamp duty is paid, that the duty has been paid, and state in the said endorsement the amount of the duty so paid.

(b) An endorsement, made on any instrumentunder clause (a) shall have the same effect as ifthe duty of an amount equal to the amountstated in the endorsement had been paid inrespect of, and such payment had beenindicated on, such instrument by means ofstamps, under sub-section (1).]


provides for powers delegated to the State

Government for framing the rules which reads as

follows;

69. Power to make rules relating to sale ofstamps. - The State Government may make rulesfor regulating,-

(a) the supply and sale of stamps and stampedpapers,(b) the persons by whom alone such sale is to beconducted, and(c) the duties and remuneration of such persons:


provides for publication of rules which reads as

follows:

71. Publication of rules. –

(1) All rules made under this Act shall bepublished in the Official Gazette.


(2) All rules published as required by thissection shall, upon such publication, have effectas if enacted by this Act


provides for delegation of powers which reads as

follows:

72. Delegation of certain powers. - The StateGovernment may by notification in the OfficialGazette delegate-

(a) all or any of the powers conferred on it bysection 2 (f), 33 (3) (b), 64, 69 and 75 to theChief Controlling Revenue Authority; and

(b) all or any of the powers conferred the ChiefControlling Revenue Authority by sections 44,53 (1) and 64 (2) to such subordinate Revenueauthority as may be specified in thenotif ication.

12. The petitioners state that the State Government in

purported exercise of powers conferred upon it

under section 69 framed the rules named and called

as Gujarat Stamp Rules, 1978 (hereinafter referred

to as “Stamp Rules”). The sub-rule 2 of rule 3

speaks about the kinds of the stamps which reads

as follows:

3. Description of Stamps:

(1) Except as otherwise provides by the IndianStamps Act, 1899 or the Bombay Act, 1958, orby these rules

(2) There shall be two kinds of stamps forindicating the payment of the duty with whichinstruments are chargeable namely:-

(a) impressed stamps, and

(b) Adhesive stamps



exercise of powers conferred upon it under section

2(K)(4) read with section 10 and section 70 of the

Act framed the rules named and called as Gujarat

Stamp (Payment of duty by means of e-stamping)

Rules, 2014 (hereinafter referred as to E-Stamp

Rules). Rule 20 of the E-Stamp Rule provides for the

payment of the duty by e-stamping which reads as

follows:

20. Application for e-stamp certif icate:- theperson desiring to pay stamp duty mayapproach any of the approved Intermediaries;provide the requisite details in FORM-3 alongwith the payment of the Stamp duty amount, forgetting the e-stamp certificate

14. The petitioners state that the Superintendent of

Stamp vide circular dated September 09, 2019 has

informed that as per the provisions contained in

rule 13 of the E-Stamp Rules, the Authorized

Collection Centers (ACC) were appointed amongst

the schedule banks, financial institutions under the

control of the State and Central Governments and

Post Office. However, so as to see that the general

public may not find it difficult, the rules are being

changed and the ACC would be appointed from

amongst the schedule banks, financial institutions

under the control of the Central and State

Government, Post Officers, Licensed Stamp Vendor,

Chartered Accountant, Company Secretary, CF

Agents of Ports and the Common Service Centers of


E-Governance, RBI Registered Non Banking

Financial Institutions, Notary or any other persons

identified with the consultation of the State

Government. The copy of the circular dated

September 09, 2019 is annexed hereto and marked

as Annexure F to this petition.


purported exercise of powers conferred upon it

under section 69 and section 70 read with section

2K and 10 of the Act read with section 74 and

section 74 read with section 10 of the Act amended

the Sales Rules by insertion of rule 8A. The copy of

the notification dated September 7, 2019 is annexed

hereto and marked as Annexure G to this petition.

16. The said rules have been framed ultra vires the

provisions of the Act and the several rules made

there under and which will result into death knell of

the stamp vendors all throughout the State of

Gujarat and would create number of difficulties to

the general public at large, in as much as, there

may not be availability of the networking in the

small town and villages. The power supply is very

erratic and the all stamp vendors may not be able to

enroll themselves as ACC on account of the fact that

the commission being awarded to the ACC is

negligible, in as much as, 23% of the discount

earned by the Stock Holding Corporation India


Limited (SHCIL) from sale of the stamp. It may be

noted that the said facts have been disclosed by the

respondent government who has circulated the

proposed agreement between SHCIL and ACC. As per

the information of the petitioners, SHCIL is being

paid 0.65% of the discount of the face value of the

stamp therefore, for sale of stamp of Rs. 100/-,

SHCIL will get 65 paise and therefore, on sale of s-

stamp of Rs. 1 lac, SHCIL will get Rs. 650 as

discount. 23% of the said discount would be parted

by the SHCIL to the ACC and therefore, the ACC will

get Rs. 149.50 paise. At present, the stamp vendor

is paid 1% of the face value of the stamp beyond the

sale of stamp paper of Rs. 100 therefore, on sale of

the stamp paper of Rs. 1 lac, the stamp vendor was

getting Rs. 1000/- as discount against that, as per

the new provisions, the stamp vendor would get less

than 1/6th of the total discount payable as per the

original schedule. In fact, as per the revised

schedule, as proposed by the respondent, the stamp

vendor would get 14.95% of its original discount

therefore, the total discount would be reduced from

1% to 0.1495%. The copy of the proposed agreement

described as Annexure B is annexed hereto and

marked as Annexure H to this petition.

17. The petitioners state that some of the stamp

vendors across the State representing the general

cause, have approached the government and made


representations pointing out that the rules framed

are not in consonance with the provisions of the Act

and Rules made thereunder and there would be

several difficulties faced by the stamp vendors and

the public at large. It may be noted that in case of

the physical stamp, the stamp vendor can move the

stamp papers along with him, whereas, in case of e-

stamping, the stamp vendor will have to be

stationed at one place with necessary

infrastructures namely the computer, franking

machines and the facility of internet and power

supply. Considering the meager discount being

offered under the new rules, the 80% of the stamp

vendors would be out of the business. More and

above, this facilities are being provided as suggested

notary, chartered accountant and others, it may not

be possible to enter into an agreement by those

persons and institutions since, the discount offered

is not remunerative for holding the infrastructures

therefore, in the name of providing facility to the

public at large, in fact, by introductions of the rule

8A of the Sales Rules, the more troubles are being

created for the public at large.

18. The petitioners state that the rules 8A is ultra vires

to the provision of the Act and therefore, the

petitioners beg to approach this Hon’ble Court by

way of present petition under article 226 of the

Constitution of India.


19. The petitioners submit that the clause H of rule 2

defines duly stamped which speaks about the

adhesive and impressed stamp. It may be noted that

the clause K of section 2 defines impressed stamp

which speaks about four kinds of mode for

collection of duty namely (1) label affixed or

impressed by the proper officer (2) the stamp

embossed or engraved on the stamp paper (3)

impression by franking machine (4) receipted

challan or certificate issued under the e-stamping

system or any other system as may be prescribed by

rules. The subsection 1 of section 10 provides as to

how the duty is to be paid. It provides that the

chargeable duty on the instruments shall be paid as

indicated on such instruments by means of stamps,

according to the provisions contained and when

there is no provision contained, as may be

prescribed by the State Government. It is pertinent

to note that the subsection 2A in section 10 has

been inserted by Gujarat Act No. 7 of 2009 which

provides that Chief Controlling Revenue Authority

may authorize for use of franking machine for

making impression on the instruments chargeable

with duties. The subsection 2B has been inserted by

Gujarat Act No. 11 of 2007 in section 10 of the Act

which provides that Chief Controlling Revenue

Authority or the Superintendent of Stamp

considering the number of instrument to be


executed by a person, an amount of duty charged

can authorize the use of franking machines, if it is

so satisfied in the public interest. The subsection 3

of section 10 provides that when the State

Government in relation to any specified area or the

Collector in relation to any district under his

charge, is satisfied that there is temporary shortage

of stamp in such area, the stamp duty can be paid

by issuing notification in official gazette in cash in

the government treasury or sub-treasury. The

petitioners would therefore, submit to this Hon’ble

Court that the conjoint reading of section 10 with

clause H and K of the subsection 2 provides that the

stamp duty is to be paid by means of stamp in

accordance with the provisions contained in Act.

There is no power conferred on State Government to

prohibit the payment of the stamp duty by use of

physical stamp, no such power is conferred on the

State Government to frame the rules in section 69 of

the Act. Section 69 of the Act provides the rule

making power of the State Government which

provides for the regulation of supply and sale of the

stamp and stamp paper and the manner in which

the stamp or the sale of the stamp papers to be

conducted and duties and remuneration of such

persons. No powers is conferred on the State

Government in section 69 of the Act which

empowers them to provide that the duties is to be


payable by e-stamping alone. It is pertinent to note

that no act can be framed, no enactment can be

enacted by the legislature which is not empowered

under the constitutions to be enacted. Even, as per

the interpretation of the constitution enunciated by

several judicial pronouncements by the

constitutional bench and larger benches of the

Supreme Court of India, no constitutional

amendments can be allowed which is beyond the

basic structure of the constitution. The same

principle applies as per the cardinal principle of the

Indian Jurisprudence and the principle of

interpretation of statutes that no rules can be

framed which is contrary or inconsistence with the

provisions of the statute under which power of

framing rules is conferred. When the provisions of

the Act provides that the stamp duty payable on

the instruments are to be paid by any of the four

modes as contemplated under section 10 of the Act,

the State Government has no power or authority to

give a preference to one against all and prohibit all

other modes of payment and therefore, the rules

framed by the government by insertion rule 8A in

the Sales Rules is ultra vires.

20. The petitioners submit that the rule 8A has been

inserted in Sales Rules on the alleged intention and

the purpose of the State Government that by

providing e-stamping, the public at large would be


more benefitted. There is no logic behind such claim

being made by the State Government and its

authorities. It may be noted that each stamp vendor

are having the stamp paper according to their

financial capacity. The certain stamp vendors are

holding stock of stamp papers valued in lacs of

rupees. There are large number of the stamp

vendors in Gujarat who are holding the stock of

stamp papers of more than Rs. 10 lacs, few of them

are holding the stock of more than Rs. 50 lacs. The

petitioner would therefore, like to point out to this

Hon’ble Court that as per the rough estimate, the

total stock of the stamp papers of all the stamp

vendors in the Gujarat State would be about 45 to

50 crores. In case of treasury at Ahmedabad, the

total available stock of stamp paper is about Rs.

350 crores approximately. In all, all treasuries in

State of Gujarat would be holding, the total stock of

Rs. 1500 crores. The buffer stock of stamp paper

would be available in the office of the Inspector

General of Stamp would be about Rs. 1500 crores.

Therefore, as on today, the government and its

agencies are holding the stock worth Rs. 3000

crores of stamp papers and 15 crores stock is

available with all the stamp vendor. The government

propose to prohibit sale of this physical stamp

paper on and from October 01, 2019. It may be

noted that there is no sale of stamp paper since,


inauspicious period of pitru paksha is going on and

therefore, the stock will remain as it with negligible

sale. Therefore, the stock of stamp papers valued

about Rs. 3000 crores is being wasted by the

government which is a criminal waste of the public

money and unwarranted and unethical burden on

the public exchequer. The stamp papers are printed

in the security press. The destroying of these

valuable stamp papers would be nothing but

criminal waste of the public money and therefore,

also the claim made by the respondent State

Government is not in furtherance of providing

facilities to the public at large but it is criminal

waste of the public money.

21. The petitioners submit that the petitioners would

like to point out to this Hon’ble Court that the

stamp vendors are available in metro cities alone

but in all other towns and even in small taluka

towns as well. The small taluka towns which are at

far distance interior part of the state are not having

the facilities of internet network all throughout. It

may be noted that the hazardous rules is likely to

create more problem than solving it. Each ACC will

have to line up with SHCIL on the internet. The

timing is 10 to 5 therefore, on the website of the

SHCIL all the stamp vendors, all public institutions,

notaries, chartered accountants, company

secretaries and post offices would be trying to log


on the website of SHCIL. The working of this website

of the said company would not be in the hand and

control of the said company since, everybody will

have to work with the median of communication i.e.

internet. The internet networking is not only

available for the sale of the stamp. There may be

various consideration which would crash the

networking system because of various other grounds

and in the small town, the availability of the

networking is one of the major issue, more and

above, the supply of the electric power. Therefore,

the claim made by the government for the object and

purpose of insertion of rule 8A had no logic.

22. It is humbly submitted that the object is stated by

the Hon’ble Revenue Minister in the press note that

it shall facilitate the people to get the Stamp Paper

is thoroughly illusive. It has been stated that stamp

vendors are manipulating the supply of stamp

papers and therefore a decision has been taken to

provide only for digital stamp paper only and

through out in the state use of physical stamp paper

is to be stopped w.e.f 01.10.2019. It is submitted

that the object stated in the press report itself looks

very evasive. It is submitted that if this is the

concern of the state government, it could have been

also achieved by providing more venues for e-

stamping.


23. It is submitted that another changes made vide

circular dated 19.09.2019 is to the effect of making

changes in Rule 8 of Gujarat Stamp Supply and

sales Rules, 1987. It is submitted that Rule 8

provides that the licensed vendor shall subject to

rules 3 and 4 sell such stamps of such value as may

be specified in the license. It is submitted that

merely by office circular changes are made by

inserting new Rule 8A providing that w.e.f

01.10.2019 the stamp vendors shall not sell the Non

Judicial Stamp paper. It is submitted that such

changes in the Statutory rules by mere circular is

thoroughly impermissible, delegated legislation, void

ab inito and abdication of legislative function.

24. It is submitted that there has been no assurance for

the rate of discount or commission also in the new

changes. It is submitted that at present it shall be

governed by the Appendix III of the Gujarat Stamp

Supply and Sales Rules. It is submitted that

existing rules itself are too meager as against that it

has been orally conveyed during the course of

representation that rates shall go still much down.

It is submitted that no fixed policy is provided

under the new scheme.

25. It is submitted that the present petitioners who are

holding valid license renewed from time to time

cannot be extinguish in their work and that too by


the delegated legislation. It is submitted that it

virtually amounts to simplicitor termination of their

licensee without issuing any notice and/or without

giving them any opportunity of hearing and without

following any due procedure of law. The impugn

action is against all the canons of rule of law.

26. The petitioners submit that the circular issued by

the Superintendent of the Stamp has been issued

without application of mind. It has been stated that

notary would also be permitted to trade in e-stamp.

With profound respect, it is submitted that the

notaries are essentially lawyers and advocates and

no lawyer or advocate so far holds the sanad and

practicing license can enter into any activities of

business by trading e-stamp. This is one of the

example to suggest that the insertion of rule 8A

made by the government is without application of

mind and is ex facie arbitrary and therefore,

violative of article 14 of the Constitution of India.

27. The petitioners submit that the subsection 2 of

section 10 of the Act provides that the rules can be

framed for the regulation of the kind of the

instruments for which the stamp can be used

and/or the number of the impressed stamp to be

used in such cases. The subsection 2 of section 10

of S Act does not confer the power on the State

Government to frame the rules which would permit


them to prohibit the use of all other stamps

therefore, the framing of the rules by the State

Government by insertion of rule 8A of the Sales

Rules is ultra vires.

28. The petitioner states that the petitioner has no

other alternative efficacious remedy but to approach

this Hon’ble Court by way of the present petition.

29. The petitioner states that the petitioner has not

filed any other petition, in the subject matter of the

present case, before this Hon’ble Court or any other

Court of law including the Hon’ble Supreme Court,

for the very same relief.

30. The petitioner craves leave to add, alter, amend or

rescind or modify or delete any of the foregoing

paragraphs as and when necessary

31. The petitioners, therefore, humbly prays to this

Hon’ble Court that:

A. The Hon’ble Court may be pleased to issue a

writ of mandamus or a writ in the nature of

mandamus or any other appropriate writ,

order or direction and hold and declare that

rule 8A of the Sales Rules is ultra vires to the

provision of the Act;

B. Your Lordship may be pleased to issue an

appropriate writ order or direction to quash

and set aside the circular dated 09.09.2019


and circular dated 16.09.2019 bearing no

STP/LAW/51/2019/14967-15002 issued by

the Respondent no.2;

C. Pending admission and final disposal of the

present petition, be pleased to stay the

implementation, execution and operation of

the impugned rule 8A of the Sales Rules;

D. Pending the admission, hearing and till the

final disposal of the present petition, Your

Lordship may be pleased to stay the

implementation, execution and operation of

the notification dated 23.08.2019 bearing no

GHM/2019/75/M/STP/122019/1035/H.1

issued by the Respondent No 1; AND also

the circular dated 09.09.2019 and

16.09.2019 issued by the Respondent No. 2;

E. Pending the admission, hearing and till the

final disposal of the present petition, Your

Lordships be pleased to restrain the

respondent authorities from discontinuing

the supply of stamp paper to the stamp

vendors in accordance with the provision of

the Act and Rules framed thereunder and

further be pleased to direct the respondent

authority not to prohibit the petitioner from

supplying stamps as per Act and Rules

framed thereunder:


F. To pass such other and further order/s

necessary in the interest of justice.

AND FOR THIS ACT OF KINDNESS THE APPLICANTS AS IN DUTY BOUND SHALL EVER PRAY.

Place: Ahmedabad (DHAVAL D. VYAS)

Date : .9.2019 Advocate for the Petitioners

A F F I D A V I T

I, ________________________________________, Aged about

_____ years, residing at______________, the petitioner

herein, do hereby solemnly affirm and state on oath as

under:

I have gone through the contents of memo of the above

application. I have understood the same. I state that what

is stated in paragraph nos.1 ___ to ____ is true to my

knowledge and I believe the same to be true. Paragraph

No.___ contains prayer clause. The annexures annexed to

this application are true copies of the original of which

they purport to be copies. I state that no part of this

affidavit is false and nothing has been suppressed from

this Hon’ble Court.


Solemnly affirmed at __________ on this ____ day

of September, 2019.

_____________

D e p o n e n t

Identified by me



(DISTRICT:DAHOD)

SPECIAL CIVIL APPLICATION NO. __________ OF 2019

Nileshkumar Motilal Valand & Ors. … Petitioners

Versus

State of Gujarat & Others ... Respondents

INDEX

Annexure Particulars Page Nos.

-- Memo of Petition

A Copy of One of the license issued by the competent authority.

B Copy of order dated 21.1.2015 passed in SCA No.9422 of 2014.

C Copy of the Notification dated 23.08.2019 bearing no GHM/2019/75/M/STP/122019/1035/H.1 Issued by the Respondent No. 1.

D Copy of the Circular dated 09.09.2019.

E Copy of the circular dated 16.09.2019.

F Copy of the circular dated September 09, 2019.

G Copy of the notification dated September 7, 2019.

H Copy of the proposed agreement described as Annexure B.



(DISTRICT:DAHOD)

SPECIAL CIVIL APPLICATION NO. __________ OF 2019

Nileshkumar Motilal Valand & Ors. … Petitioners

Versus

State of Gujarat & Others ... Respondents

LIST OF EVENTS

Date Particulars

Challenge By way of this petition under Article 226 of the

Constitution of India the Petitioner/s prays for a writ

of mandamus or any other appropriate writ order or

direction to quash and set aside the notification

dated 23.08.2019 bearing no

GHM/2019/75/M/STP/122019/1035/H.1 issued

by the Respondent No 1. The petitioners also seek

an appropriate writ order or direction to quash and

set aside the circular dated 09.09.2019 issued by

the Respondent No.2. The petitioners also seek an


aside the circular dated 16.09.2019 bearing no

STP/LAW/51/2019/14967-15002 issued by the

Respondent no 2.

That the present petitioners are the stamp vendors

appointed by the State of Gujarat under the

provisions of Gujarat Stamp Act and as such they

are functioning in Dahod District. That all the

petitioners are the authorized license holders as a

stamp vendor and their licenses are renewable on a

year to year basis.

That by way of the impugned action, drastic changes

are made in the existing Act and the whole class of


existing stamp vendors are brought to an end and

the aforesaid action is in violation of the act and is

ultra vires to the Act. Therefore, present petition for

quashing and setting aside the same as well as

appropriate observations and direction upon the

respondent authority.

Hence, present petition.


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