Section 19: Bills and notes drawn out of the Union territory of Jammu and Kashmir.

The first holder in the [Union territory of Jammu and Kashmir] of any bill of exchange [*] 5payable otherwise than on demand or promissory note drawn or made out of the [Union territory of Jammu and Kashmir] shall, before he presents the same for acceptance or payment, or endorses, transfers otherwise negotiates the same in the [Union territory of Jammu and Kashmir], affix thereto the proper stamp and cancel the same :

Provided that,—

(a) if, at the time any such bill of exchange [*] or note comes into the hands of any holder thereof in the [Union territory of Jammu and Kashmir], the proper adhesive stamp is affixed thereto and cancelled in manner prescribed by section 12 and such holder has no reason to believe that such stamp was affixed or cancelled otherwise than by the person and at the time required by this Act, such stamp shall, so far as relates to such holder, be deemed to have been duly affixed and cancelled ;

(b) nothing contained in this proviso shall relieve any person from any penalty incurred by him for omitting to affix or cancel a stamp.