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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

DISTRICT: AHMEDABAD

WRIT PETITION (PIL) NO.

CONSUMER PROTECTION AND

ANALYTIC COMMITTEE

VERSUS

STATE OF GUJARAT

INDEX

OF 2019

... PETITIONER

... RESPONDENTS

SR ANNE PARTICULAR PAGE NO. 1.

2.

XURE . .

A

Memo of Petition

Copy of the Notification of Respondent

No. 1 introducing .Rule 8A in Gujarat

Stamp Supply and Sales Rules, 1987.

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Date: 26.09.19

Place : Ahmedabad Advocate for Petitioner

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

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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

DISTRICT : AHMEDABAD

WRIT PETITION (PIL) NO. OF 2019

CONSUMER PROTECTION AND

ANALYTIC COMMITTEE .. PETITIONER

VERSUS

STTE OF GUJARAT .. RESPONDENTS

Date And Events

1899 Indian Stamp Act, 1899 ( 2 of 1899) is enacted.

1958 Gujarat Stamp Act, 1858 is enacted. .

- General Public had option to pay Non-Judicial

Stamp by virtue of ( I) Physical Stamp papers ( II)

Franking (III) E-stamping ( IV )E-challan.

September Govt. of Gujarat has amended Rule 8A in Rules,

2019 1987 by virtue of which prohibition is imposed on

selling Non-Judicial Stamp Papers ( Physical ) by

licensed vendors from 01,10.19.

- In other states, where E-stamping is operational, in

majority of states, Physical Stamp Papers of lesser

denomination are also available. Complete

Prohibition of selling of Non-Judicial Stamp (

Physical ) papers from 0 1.10.19 will cause hardships

and inconvenience.

26.09.19 Hence this Vires PIL.

Date : 26.09.19

Place : Ahmedabad Advocate for Petitioner

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• IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

EXTRA ORDINARY ORIGINAL JURJSDICTION

WRIT PETITION (PIL) NO. OF 2019

In Re: Non- selling of embossed or engraved Stamp Paper ( Physical

Non Judicial Stamp Papers) to public wef 1.10.2019.

IN THE MATTER OF

Consumer Protection And . .

Analytic Committee

Through Authorized Signatory

Rajendra Nandlal Shah

Age: 61 Years, Male

Bl 2, Diamond Square Building

Nr. Navjivan Press,

Income Tax,

Ashram Road, Ahmedabad -380014.

1

. .. Petitioner

1. State of Gujarat

Ministry of Revenue

Versus

Stamp and Registration Department,

Gandhinagar.

Notice to be Served Through

Government Pleader

High Court of Gujarat

Kayda Bhavan

Sola

Ahmedabad.

. .. Respondents

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THE HON'BLE CHIEF JUSTICE AND

THE OTHER HON'BLE JUDGES OF

THE HIGH COURT OF GUJARAT

AT AHMEDABAD.

The Humble Petition of the

Petitioner above named

MOST RESPECTFULLY SHOWETH:

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1. The Petitioner states and submits that the Petitioner

has filed present Petition under article 226 and 227

of the Constitution of India, 1950 is being filed by

way of Public Interest Litigation, and the Petitioner

has no personal interest in filing present petition. The

Petition is being filed in the interest of Public at large

of Gujarat State on the premise of challenging

constitutional validity of R�le 8A of Gujarat Stamps

Supply and Sales Rules, 1987 and that there is

likelihood of huge difficulty to general public at large

to purchase stamps ( Non - Judicial ) from

01.10.2019 in State of Gujarat more particularly in

remote areas and villages. The copy of Notification

dated 07.09.19 by State of Gujarat introducing Rule

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8A in Gujarat Stamps Supply and Sales Rules,

1987 Is annexed herewith and marked as

ANNEXURE A.

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2. The Petitioner states and submits that it is an

organization functioning for the welfare of the

consumers and is registered under the Societies Act,

1962 and Trust Act. It was established in the year

2001 and the President of the organization is Mrs.

Charuben R Shah till today, the Petitioner has issued

notice to several people and organization, for

championing the rights of consumers. The Petitioner

has 47 branches throughout States of Gujarat and is

thus deeply penetrated in Gujarat State. The

Authorized Signatory is the President of Campaign

Committee of the Petitioner. The Petitioner has

earlier filed WP (Pl L) No. 68/12 (regarding disposal

of s. 14 applications by District Magistrate,

Ahmedabad under the Securitisation Act, 2002,

Hon'ble Court gave directions that after passing of

the order 14 days notice required to be given to

borrower), WP (PIL) 159/12 ( Challenge made to the

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legislative competence of the Union of India to

enact the Banking Regulation Amendment Act, 1965

which give RBI the power over the Co-operative

Banks), WP (PIL) 208/12 (This Court held s. 16 and

s. 20 of the Consumer Protection Act as intra vires),

WP (PIL) No. 77/12 (The PIL was dismissed with as

the Court failed to find Public Interest in the issue of

merger of Udhna Co-operative Bank with Kalupur

Co-operative Bank. The Court also was not

convinced about the bonafides of cause sought to

· espoused by the Petitioner), WP (PIL) No. 186/12

(For cleaning of Lal Bahadus Shashtri Lake Drainage

in time limit, Corporation did needful and hence PIL

was disposed of.), WP (PIL) No. 137/12 (The

Challenge the establishment of NGT at Pune, the

petition came to be withdrawn, and the fresh petition

is filed which is pending as on date.), WP (PIL) No .

88/15 (The Challenge the establishment of NGT at

Pune, fresh PIL was filed which is pending as on

date). The Respondent No. 1 is State of Gujarat and

the concern Ministry is Revenue Ministry. The

authority is Superitendent of Stamps and Inspector


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General of Registration. Stock Holding Corporation

of India Ltd. ( SHCIL ) is Central Record Keeping

agency appointed by Govt. of India for e - stamping

project. E- Stamping is currently operational in about

18 states of India. •

3. That the Petitioner is filling the present petition purely

in the public interest on it's own and not at the

instance of any other person or organization. The

litigation cost, including the advocate's fees and

travelling expenses are being borne by the petitioner.

In compliance of Rule 3 of "The High Court of

Gujarat [Practice and Procedure for Public Interest

Litigation] Rules, 2010 [for short 'the Rules'] it is

submitted that:

3.1 The Petitioner is an association of Consumers who

work for rights of consumers.

3.2 The Petitioner does not have any personal interest in

the outcome of the petition.

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3.3 The Petitioner has not faced any contempt of Court

proceedings.

3.4 The Petition is not based on news report.

3.5 The Petitioner seeks to challenge constitutional

validity of Rule 8A of Gujarat Stamps Sales and

Supply Rules, 1987.

3.6 The Petition is filed though it's President who is duly

authorized by resolution in his capacity as the

President of the Petitioner of Association. The

petitioner has earlier filed WP (PIL) No. 68/12

(regarding disposal of s. 14 applications by District

Magistrate, Ahmedabad under the Securitisation Act,

2002, Hon'ble Court gave directions that after

passing of the order 14 days notice required to be

given to borrower), WP (PIL) 159/12 (Challenge

made to the legislative competence of the Union of

India to enact the Banking Regulation Amendment

Act, 1965 which give RBI the power over the Co-

l.nnsnmer Protection �nrl An�lvtic: \.nmmittf':f':


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operative Banks), WP (PIL) 208/12 (This Court held

s. 16 and s. 20 of the Consumer Protection Act as

intra vires), WP (PIL) No. 77/12 (The PIL was

dismissed with as the Court failed to find Public

Interest in the issue of merger of Udhna Co-operative

Bank with Kalupur Co-operative Bank. The Court

also was not convinced about the bonafides of cause

sought to espoused by the Petitioner), WP (PIL) No.

186/12 (For cleaning of Lal Bahadus Shashtri Lake

Drainage in time limit, Corporation did needful and

hence PIL was disposed of.), WP (PIL) No. 137/12

(The Challenge the establishment of NGT at Pune,

the petition came to be withdrawn, and the fresh

petition is filed which is pending as on date.) WP

(PIL) No. 88/15 (The Challenge the establishment of

NGT at Pune, fresh PIL was filed which is pending as

on date).

3.7 The Petitioner is filing the present petition purely in

public interest as stated in the Petition, on his own

and not at the instance of any person or organization.

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3.8 The cost of litigation, fees of Advocate are born by

the Petitioner itself.

3.9 The issue involved in the present petition affects the

people at large and there are detailed averments as

regards involvement of Public Interest.

3.10 The cause involved is purely in Public Interest

and there is no personal gain, private motive or

oblique motive behind filing he present PIL.

3.11 In Compliance of Rule 5 of the Rules, it is submitted

that the present PIL falls under Rules S[xiii] in as

much as the same falls under the category of "any

other matter in public interest".

4 The brief facts of this case are :

4.1 The Petitioner states and submits that the

Respondent No. 1 has introduced Rule 8A in

Gujarat Stamps Supply and Sales Rules, 1987 by

virtue of which Licensed Vendors shall not sell

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Stamps embossed or engraved on stamped paper (

Physical Non - judicial Papers ) to the public w.e.f.

01.10.2019. Thus in public interest, the said Petition

is filed by Petitioner, so that public does not have to

face hardships and inconvenience for lack of

availability of Stamps ( Non - Judicial ) and also not

to face unconstitutional Rule enacted without rthym�

and reason. It is by now trite that subordinate

legislation can be challenged on the grounds ( i )

violative of Constitution of India. ( ii ) violative of Act

under which rules are enacted. ( iii ) lack of

legislative competence ( iv ) manifestly arbitrary ( v )

failure to conform to the statute ( vi ) repugnancy to

laws of land, in any enactment. The Petitioner

asserts and contends that impugned Rule BA it is

violative of Constitution, violative of Gujarat Stamp

Act and Indian Stamp Act, manifestly arbitrary and it

fails to conform to Gujarat Stamp Act and Indian

Stamp Act.

4.2 The Petitioner states that the said rule which is

challenged as ultra vires in this Petition is enacted

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by Respondent No. 1 in exercise of power

conferred by section 69 and section 70 read with

section 2 (k ) and section 10 of Gujarat Stamp Act,

1958 and section 74 read with section 10 of Indian

Stamp Act.

4.3 The Petitioner states that as per amended Rule 8A,

no licensed vendor will be selling Non-judicial

Physical Stamp Paper to public from 01.10.19,

despite the fact that Rule 8 says to the contrary.

4.4. The Petitioner states that licensed vendor is creation

of Gujarat Stamps Supply and Sales Rules and if

they are not to sell Stamps, it will be detrimental to

their right of occupation as guaranteed under

Constitution of India, 1950.

4.5. The Petitioner states and submits that currently as

far as stamp goes, publi� has various options to

explore under Gujarat Stamp Act, 1958 which are

enumerated hereinafter : ( i) embossed or engraved

stamps ( ii) franking ( iii ) E-stamping ( iv ) E -

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challan. However as far as E- stamping and E-

challan are concerned , internet access is required

along with server connection. If internet connection

is not there, one cannot resort to E-Stamping and E

challan as means of payment of stamp duty ( Non. -

Judicial ). The same may face difficulty when

internet 1s blocked by State under Criminal

Procedure Code to curb any agitation or because of

technology failure, internet services and servers are

affected. Franking is currently done at some Post

Offices and Banks, but it also does not wide

penetration. The penetration of ( ii ) to ( iv ) even

today is not much compared to selling of Physical

Non - Judicial Stamps by licensed vendors. On the

other hand, licensed vendors sell Non Judicial

Physical Stamp Paper as well as Court Fees Stamp.

It is worth to aver that selling physical Non - Judicial

Stamp Papers have been in vogue since long time

and it has stood the test of time. Most of the senior

Citizens opt for Physical Non Judicial stamp Papers

as in E -Stamping and E- Challan, unless the money

is credited in the account of treasury, receipts will

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not be generated and some times despite

payment having gone from one's account, some

times , time 1s taken for generating E-stamping

Certificate or E- Challan, as the case may be.

Several times, money transfers takes time in server

because of technical issues and that's why also,

Physical Stamp Papers ( Non - Judicial ) 1s

preferred mode. As on date, there are not sufficient

number of E stamping centres known as ACC (

Associated Collection Centres ) in State of Gujarat to

cater to the needs of everyone more particularly at

Taluka and Village levels. ACC is defined under R. 2

( iv ) of The Gujarat Stamp ( Payment of Duty by

means of E-stamping Rules, 2014 ). E - challan is

creation of The Gujarat State e-payment of Stamp

Duty Rules, 2017. In most of the states where E -

stamping is operational, Physical stamp Paper ( Non

- Judicial ) of lesser denomination upto Rs. 500 are

still available. As on date, in light of non-sufficient

number of ACC, it is no.t in fitness of things to

completely prohibit selling Non - judicial Physical

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Stamp Papers. Under guise of regulation,

complete prohibition is not permissible in realm of

law.

4.6. Hence this Petition.

5. The Petitioner states and submits that the source of

information is Rule 8A of Gujarat Stamps Supply and

Sales Rules 1987 and news coming in the

newspaper about of the Rule prohibiting selling of

Non Judicial Physical Stamps by licensed vendors

from 01.10.2019.

6. The Petitioner states and submits that Petitioner has

not made any representation in this regards to the

concern authority.

7. The Petitioner states and submits that as per the

knowledge of the Petitioner no other petition has

been filed before this Hon'ble High Court or Hon'ble

Supreme Court of India on the said subject matter.


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. 8. The Petitioner states and submits that the present

petition has been filed on the following amongst

other grounds.

GROUNDS

A. Because sudden insertion of Rule 8A of Rules

1987 and not giving sufficient time to switch

over inevitably causes lots of hardships and

inconvenience to public in light of sufficient

number of operational ACC. With due respect,

it is mechanical act of State without considering

ground realities and without creating proper

awareness amongst general public. In other

states, apart from E -stamping, Physical Non -

judicial Stamp Papers of lesser denomination

are still sold to general public like Maharastra

and Uttar Pradesh.

B. Because Rule 8A of .Rules 1987 is beyond the

scope, ambit and purview of Section 2 ( k ), •


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Section 10, Section 69 and 70 of Gujarat

Stamp Act, 1958 and Section 10 and Section

74 of Indian Stamp Act. It is trite that regulation

does not include prohibition. Section 69 of

Gujarat Stamp Act speaks of regulation and

under guise of regulation, State has created

prohibition by virtue of impugned Rule 8A.

C. Because Rule 8A of the Rules 1987 is

manifestly arbitrary, unreasonable and de hors

logic and rational.

D. Because Rule 8A of Rules 1987 is violative of

Art. 14, 19 and 21 of Constitution of India, 1950.

E. Because Section 2 ( k ) specifically states that

stamps includes embossed or engraved

stamps, then it is difficult to fathom that despite

parent Act saying so, subordinate legislation

directs not to sell Non Judicial Physical Stamp

Papers. Rule 8A fails to take cognizance of

the fact that in other States apart from E-

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stamping, Physical Non - Judicial stamp

Papers are available of lesser denomination.

E - Stamping is available currently in 18 states

and in most of the states Non Judicial Stamp

Paper of lesser denomination is available.

F. Because Rule 8A of Rules 1987 makes other

rule by virtue of which licensed vendor is

created otiose, redundant and nugatory.

G. Because by resorting to Rule 8A, very less

time is given to public to switch over to E

stamping more particularly when there are not

sufficient ACC in State of Gujarat.

H. Because Rule 8A fails to visualize situation

when internet blockade Is there by State

Govt., in light of only E-Stamping and E

challan, stamping activities will come to

grinding halt. It will cause lots of hardships

and inconvenience to public at large.

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I. Because Rule 8A cannot be brought into

force without sufficient E-Stamping centres and

without proper awareness amongst the public.

The Notification to bring the Rules is dated

07.09.19 and by 01.10.19, no licensed vendor

is to sell Non - Judicial Physical Stamp Paper.

J. Any other argument which may be urged at the

time of the hearing.

9. T.he Petitioners states that the Petitioners have a

strong prima facie case and balance of convenience

is also in favour of Writ Applicant. Irreparable loss will

be caused, if stay as sought is not granted by Hon'ble

Court in the interest of justice. The action and conduct

of the Respondents is arbitrary and unreasonable and

is illegal and invalid and contra to law. No irreparable

injury is likely to be caused to the Respondents if stay

is granted. It is therefore, imperative and in the

interest of justice that interim relief as prayed for be

granted.


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1 0. The Petitioner state and submit that the Petitioner

have not filed any other petition on said subject matter

before this Hon'ble Court or before Hon'ble Supreme

Court of India.

11. The Petitioners state and submit that they have no

other equaliy alternative efficacious remedy than this

Petition under Article 226, 227 of the Constitution of

India, 1950. Petitioners reserve their right to add,

amend, alter, modify, delete or rescind any portion of

the Memo of Petition as and when required.

12. That the Petitioner prays that this Hon'ble Court may

be pleased to

A) Be pleased to declare Rule 8A of Gujarat Stamps

Supply and Sales Rules 1987 as ultra vires to

Constitution of India, 1950 and Gujarat Stamp

Act, 1958. ( Act No. LX of 1958) and Indian Stamp

Act, 1899 ( ACT 11 of 1899 ).

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B) Be pleased to direct Respondents to permit

selling of. Non Judicial Stamp Paper through

licensed vendors in State of Gujarat for duration /

time which this Hon'ble Court may think fit.

C) Pending hearing and admission of this Petition, be

pleased to stay the operation, effect and

implementation of Rule 8A of Gujarat Stamps

Supply and Sales Rules 1987.

D) Pending hearing and admission of this Petition, be

pleased to permit licensed vendors to sell Non

Judicial Stamp papers ( Physical ) and direct

Respondent No. 1 to accept it as valid.

E) Costs of this Petition be awarded.

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F) Such further and other relief, order or direction

which may by just, fit, proper and equitable in the

facts and circumstances of the Petition.

AND FOR THIS ACT OF KINDNESS AND

JUSTICE, THE PETITIONERS, AS IN DUTY

BOUND, SHALL EVERY PRAY.

Date: .09.19

Place: Ahmedabad

Advocate for Petitioner

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IN THE HIGH COURT OF GUJARAT AT AHMED ABAD

EXTRA ORDINARY ORIGINAL JURISDICTION

WRJT PETITION (PIL) NO. OF2019

Consumer Protection and Analytic Committee

... Petitioner

Versus

State of Gujarat ... Respondent

AFFIDAVIT

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I, Rajendra Nandlal Shah Authorised Signatory of Petitioner Age:

61 years, Religion: Jain, Working at Bl 2, Diamond Square Building Nr.,

Navjivan Press, Income Tax, Ashram Road, Ahmedabad- 380014, do

hereby solemnly affirm and state on oath that what is stated in Para Nos.

1 to 9 is true to the best of my knowledge, information and belief and

which I believe the same to be true and correct, Para Nos. 10 and 11 are

formal contention and paragraph 12 is prayer clause.

Solemnly affirmed at Ahmedabad on this 26TH day of September 2019.

(DEPONENT)

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NOTIFICATION

Revenue Department, Gandhinagar

Sachivalaya, Gandhinagar

Dated 7th September, 2019

Gujarat Stamp Act, 1958 and Indian Stamp Act,1899

NO.GHM-2019-83-M-STP-122019-1124-H-1. In exercise of powers conferred by

sections 69 and section 70 read with section 2(k) and IO of the Gujarat Stamp Act, I 958

(Born. LX of 1958) and section 74 read with section IO of the Indian Stamp Act, 1899 (II

of 1899), the Government of Gujarat hereby makes the following rules further to amend

the Gujarat Stamp Supply and Sales Rules,] 987, namely:-

I.(]) These rules may be called the Gujarat Stamps Supply and Sales

(Amendment) Rules, 2019

(2) They shall come in to force from the date of their publication in the Official Gazette

2. In the Gujarat Stamps. Supply and Sales Rules, 1987 after rule 8 the following rule shall

be inserted, Namely:-

"SA notwithstanding anything contained in this rules, the licensed vendor shall not sell

Stamps embossed or engraved on stamper paper (Physical Non- Judicial Stamp Papers)

to the public with effect on and from the 1 st October, 2019"

By order and in the name of the Governor of Gujarat,

Illegible/-

(M.B. Soni)

Deputy Secretary to Government


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,

To,

I. The Manager, Govt. Central Press Ghandhinagar.

With a request to publish the Notification in Part IV-B of the Gujarat Govt. Extra Ordinary

Gazette and send I 00 copies of the same to the Revenue Department, H-1 Branch, and

100 copies to the Supdt. Of Stamps and Inspector General of Registration, Gujarat State,

Gandhinagar.

2. The Chairman, Official Language Commission, Legal Department- with a request to

translate the Notification in Gujarat and to instruct the Manager, Govt. Gazette Press

Gandhinagar to publish the same in the part IX of Gujarat Govt. Gazette and send 100

Copies to the same to Revenue

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