Indian Stamp Act, st. 35, 36 and 42-Unstamped document filed in Court-Impounded-Whether can be acted upon after payment of duty and penalty.

The dispute between the appellant and the respondents in relation to a contract were referred in accordance with their contract to arbitration. The award was filed in the District Court and notice of filing was given to the parties. The appellant applied to the Court under ss. 30 and 33 of the Indian Arbitration Act, 1940 to have the award set aside on the ground inter alia that it was unstamped. The District Judge ordered the document to be impounded and directed that an authenticated copy of the instrument be sent to the Collector together with a certificate in writ- ing stating the receipt of the amount of duty and penalty. Against that order the appellant moved the High Court of Madhya Pradesh in exercise of its revisional jurisdiction. The High Court rejected the petition. By special leave appeal was filed in this Court. Relying on the difference in the phraseology between 55. 35 and 36 it which is was urged that an instrument not duly stamped may be admitted in evidence duty and penalty, but it cannot be acted upon because s. on payment of 9. 35 operates as a bar to the admission in evidence of an instrument not duly stamped as well as to its being acted upon, and the Legislature has by 3. 36 in the conditions set out therein removed the bar only against admission in evidence of the instrument.