instrument

Section 2(14) of the Indian Stamp Act, 1899 defines an instrument to include every document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded. Stamp duty is charged on instruments, not on transactions: an oral agreement attracts no duty, but a deed recording it does. Sale deeds, mortgages, leases, bonds and powers of attorney are all instruments.

The word is also used in particular senses. A negotiable instrument under s.13 of the Negotiable Instruments Act, 1881 means a promissory note, bill of exchange or cheque payable to order or bearer. In international law, an “instrument” of ratification or accession is the document by which a State consents to be bound by a treaty. An unstamped or insufficiently stamped instrument cannot be admitted in evidence until the duty and penalty are paid.

Example

The agreement to sell, being an instrument creating rights, had to be stamped before the court could admit it in evidence.

In Indian law

• Section 2(14), Indian Stamp Act, 1899
• Section 13, Negotiable Instruments Act, 1881

See also

deed · stamp duty · negotiable instrument · registration

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