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(Sec. 4.)

Illustrations.

(a) A's son has forged B's name to a promissory note. B, under threat of prosecuting Aʼs son, obtains a bond from A for the amount of the forged note. If B sues on this bond, the Court may set the bond aside.

(b) A, a money-lender, advances Rs. 100 to B, an agriculturist, and, by undue influence, induces B to execute a bond for Rs. 200 with interest at 6 per cent. per month. The Court may set the bond aside, ordering B to repay the Rs. 100 with such interest as may seem just."

4. (1) Section 74, paragraph 1, of the said Act is hereby repealed, and Amend the following is substituted therefor, namely:

ment of sec. tion 74, Act IX, 1872.

for breach of

contract

where penalty stipulated for,

"74. When a contract has been broken, if a sum is named in the contract Compensation as the amount to be paid in case of such breach, or if the contract contains any other stipulation by way of penalty, the party complaining of the breach is entitled, whether or not actual damage or loss is proved to have been caused thereby, to receive from the party who has broken the contract reasonable compensation not exceeding the amount so named or, as the case may be, the penalty stipulated for.

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Explanation. A stipulation for increased interest from the date of default may be a stipulation by way of penalty."

(2) After illustration (c) to the said section the following illustrations shall be added, namely:

"(d) A gives B a bond for the repayment of Rs. 1,000 with interest at 12 per cent. at the end of six months, with a stipulation that, in case of default, interest shall be payable at the rate of 75 per cent. from the date of default. This is a stipulation by way of penalty, and B is only entitled to recover from A such compensation as the Court considers reasonable.

(e) A, who owes money to B, a money-lender, undertakes to repay him by delivering to him 10 maunds of grain on a certain date, and stipulates that, in the event of his not delivering the stipulated amount by the stipulated date, he shall be liable to deliver 20 maunds. This is a stipulation by way of penalty, and B is only entitled to reasonable compensation in case of breach.

(ƒ) A undertakes to repay B a loan of Rs. 1,000 by five equal monthly instalments, with a stipulation that, in default of payment of any instalment, the whole shall become due. This stipulation is not by way of penalty, and the contract may be enforced according to its terms.

(g) A borrows Rs. 100 from B and gives him a bond for Rs. 200 payable by five yearly instalments of Rs. 40, with a stipulation that, in default of payment of any instalment, the whole shall become due. This is a stipulation by way of penalty."

Short title and commencement.

Addition of new section

after section 29, Act VI, 1884.

Certificates of competency or service to have effect throughout British India. Addition to heading to Chapter VI, Act VI, 1884. Addition of

new section after section 50, Act VI,

1884,

Power for Local Government to make rules

for protection of inland

steam-vessels from collision.

(Secs. 1-4.)

ACT No. VII OF 1899.1

[17th February, 1899.]

An Act to further amend the Inland Steam-vessels Act, 1884.

WHEREAS it is expedient to further amend the Inland Steam-vessels Act, VI of 1884
1884, (hereinafter referred to as "the said Act"); It is hereby enacted as
follows:-

1. (1) This Act may be called the Inland Steam-vessels Act (1884)
Amendment Act, 1899; and

(2) It shall come into force at once.

2. After section 29 of the said Act the following section shall be added namely:

"29A. Every certificate of competency or service granted under this Act shall have effect throughout British India."

3. To the heading to Chapter VI of the said Act the words "AND FROM COLLISION" shall be added.

4. After section 50 of the said Act the following section shall be added, namely :

"50A. (1) The Local Government may make rules for the protection of inland steam-vessels from collision.

(2) Rules under this section may regulate the following among other matters, that is to say:

(a) the making of sound-signals;

(b) the carriage and exhibition of lights by inland steam-vessels;

(c) the carriage and exhibition of lights by other vessels on inland
waters on which steam-vessels ply and which are specified in the
rules;

(d) the steering rules to be observed; and

(e) the towing of vessels astern or alongside.

(3) Any rule under this section may contain a provision that any person committing a breach of it shall be punished with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both."

1 For Statement of Objects and Reasons, see Gazette of India, 1898, Pt. V, p. 277; for Report of the Select Committee, see ibid, 1899, Pt. V, p. 17; for Proceedings in Council, see ibid, 1898, Pt. VI, p. 358, ibid, 1899, pp. 323 and 352.

2 General Acts, Vol. V.

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Short title,

commence. ment and extent.

Definitions.

(Preliminary-Secs. 1-2.)

ACT No. VIII OF 1899.1

[17th February, 1899.] An Act to consolidate and amend the law relating to the importation, possession and transport of petroleum and other substances.

WHEREAS it is expedient to consolidate and amend the law relating to the importation, possession and transport of petroleum and other substances; It is hereby enacted as follows:

Preliminary.

1. (1) This Act may be called the Indian Petroleum Act, 1899; and
(2) It shall come into force at once.

(3) Sections 1 to 3, section 25, and all the provisions of this Act in so far as they relate to dangerous petroleum and the importation of petroleum, extend to the whole of British India. The rest of this Act extends only to such local areas as the Local Government may, by notification in the local official Gazette, direct.

2. In this Act, unless there is anything repugnant in the subject or context,

(a) "petroleum " includes also

(i) the liquids commonly known by the names of rock oil, Rangoon oil, Burma oil, paraffin oil, mineral oil, kerosine, petroline, gasoline, benzoline, benzine and benzol;

(ii) any inflammable liquid which is made from petroleum, coal, schist shale, peat or any other bituminous substance, or from any product of petroleum; and

(iii) any liquid, or viscous mixture having in its composition any of the liquids aforesaid;

but it does not include any oil ordinarily used for lubricating purposes and having its flashing point at or above two hundred degrees of Fahrenheit's thermometer;

1 For Statement of Objects and Reasons, see Gazette of India, 1899, Pt. V, p. 13; for Report of the Select Committee, see ibid, p. 25; for Proceedings in Council, see ibid, Pt. VI, pp. 12 and 24. The Act has been declared in force in the Sonthal Parganas by the Southal Parganas Settlement Regulation, 1872 (III of 1872), see the revised edition as modified up to the 1st October, 1893. 2 The rest of the Act was extended to

(1) Coorg-see Coorg District Gazette, 1899, Pt. I, p. 125;

(2) Ajmer-Merwara-see Gazette of India, 1901, Pt. II, p. 1178;

(3) the Punjab-see Punjab Gazette, 1902, Pt. I, p. 21;

(4) certain places in the Madras Presidency-see Fort St. George Gazette, 1900, Pt. I, p. 616;

(5) the whole of the Madras Presidency-see Fort St. George Gazette, 1901, Pt. I, p. 325; (6) Burma (except the Shan States)-see Burma Gazette, 1901, Pt. 1, p. 87;

(7) the United Provinces-see North-Western Provinces and Oudh Gazette, 1901, Pt. I, p. 267;

(8) the Bombay Presidency-see Bombay Government Gazette, 1901, Pt. I, p. 902;

(9) the North-West Frontier Province-see Gazette of India, 1903, Pt. II, p. 969.

(Preliminary.-Sec. 3.)

(b) 1"dangerous petroleum" means petroleum having its flashing point

below seventy-six degrees of Fahrenheit's thermometer:

Provided that, when all or any of the petroleum on board a ship, or

in the possession of a dealer, is declared by the master of the ship
or the consignee of the cargo, or by the dealer, as the case may
be, to be of one uniform quality, the petroleum shall not be
deemed to be dangerous, if the samples selected from the petro-
leum have their flashing points, on an average, at or above
seventy-three degrees of Fahrenheit's thermometer, and if no one
of these samples has its flashing point below seventy degrees of
that thermometer:

(c) to "import" means to bring into British India by sea or land:
(d) to "transport" means to remove within British India from one
place to another :

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(e) "prescribed" means prescribed by rules made under this Act: and
ship" includes anything made for the conveyance by water of
human beings or property.

3. (1) The "flashing point" of petroleum means the lowest temperature at which the petroleum yields a vapour which will furnish a momentary flash or flame when tested in accordance with the directions in the first schedule with an apparatus which has been stamped and certified as provided by this Act within a period of five years immediately preceding the date on which the apparatus is used for the testing, and after the corrections (if any) which the certificate declares are to be applied to the results of the testing, have been made. (2) Notwithstanding anything in the definitions of "import" and transport," the Local Government, with the previous sanction of the Governor General in Council, may, by notification in the local official Gazette, declare

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(a) that petroleum imported into the Province from any part of British
India, by sea or across intervening territory not being part of

1 For rules as to carriage of petroleum in ships leaving British India, to which the Native Passenger Ships Act, 1887 (X of 1887), applies, see Gazette of India, 1993, P. I, p. 83. The same notification prohibits the carriage of dangerous petroleum in such ships.

For rules as to control of vessels entering Calcutta with petroleum in bulk under the Indian Ports Act, 1889, see Calcutta Gazette, 1903, Pt. I, p. 1165.

Petroleum imported into Chittagong by sea from any port in Burma is to be deemed to be transported within the meaning of this clause, see Notification No. 134-Marine, dated 27th July, 1900, Calcutta Gazette, 1900, Pt. I, p. 828.

For notifications under this clause affecting petroleum imported into –

Madras, see Fort St. George Gazette, 1900, Pt. I, p. 169;

Calcutta, see Calcutta Gazette, 1900, Pt. I, p. 828;

the Bombay Presidency, see Bombay Government Gazette, 1951, l't. I, p. 102 ;
Burma, see Burma Gazette, 1903, Pt. I, p. 14.

Matters supplemental to definitions.

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