Andhra Pradesh High Court
Judges : PUNNAIAH
TAYI RAMA KRISHNA RAO - Appellant
Versus
PEBBU PENCHALAMMA - Respondent
Decided On : 10-06-80
STAMP ACT, 1899 - SECTION 35 - ADMISSIBILITY OF UNSTAMPED DOCUMENTS - COLLATERAL PURPOSE - SETTLEMENT DEED - TESTAMENTARY DISPOSITION - DISTINCTION.
Fact of the Case:
The plaintiff filed a suit for recovery of money from the estate of the deceased. The defendants raised an objection against the admissibility of a document produced by the plaintiff on the ground that it was a settlement deed or a gift deed which was liable to be stamped and registered. The plaintiff contended that the document was not liable to be stamped or registered as it was only an admission of the deceased with regard to the amounts borrowed from the plaintiff.
Finding of the Court:
The court held that the document in question consisted of three parts, each of which was a separate and independent instrument. The third part, on which the plaintiff relied, was an admission of the deceased with regard to the amounts borrowed from the plaintiff. It did not require to be stamped as it did not come under the definition of "acknowledgment" or "bond" under the Stamp Act, 1899. The first two parts of the document were settlement deeds and were not admissible in evidence as they were not stamped and registered. However, the court held that the third part of the document, being a separate and independent instrument, was admissible in evidence even though the other parts of the document were not stamped and registered.
Issues: 1. Whether the document in question was a settlement deed or a testamentary disposition? 2. Whether the document was admissible in evidence for collateral purpose even though it was not stamped?
Ratio Decidendi: 1. The court held that the document in question consisted of three parts, each of which was a separate and independent instrument. The third part, on which the plaintiff relied, was an admission of the deceased with regard to the amounts borrowed from the plaintiff. It did not require to be stamped as it did not come under the definition of "acknowledgment" or "bond" under the Stamp Act, 1899. The first two parts of the document were settlement deeds and were not admissible in evidence as they were not stamped and registered. 2. The court held that the third part of the document, being a separate and independent instrument, was admissible in evidence even though the other parts of the document were not stamped and registered.
Final Decision: The court dismissed the revision petition filed by the defendants.
( 1 ) IN this revision the order passed by the Additional Judge, City Civil court, Hyderabad in I. A. No. 982/1980 in O. S. No. 462/76 is assaited.
( 2 ) THE 1st respondent-Plaintiff filed the Suit O. S. No. 462/1976 for recovery of Rs. 24, 764/- from the Estate of the deceased Srirangam Naidu who is the father of defendants 1 to 8 and the husband of the 9th defendant. The brother of the deceased gave evidence as P. W. 1 in the suit. He produced the document in question. The defendants raised objection against the admissibility of the document on the ground that the recitals in the document go to show that an extent of four acres of land was conveyed by the deceased to P. W, 1 with absolute rights and hence the document should be stamped and registered and it cannot be looked into even for colleteral purposes. It was contended on behalf of the plaintiff that the recitals in the document give the description of the property possessed by the family and the brother of the deceased has got title in respect of four acres of land and the document is filed only to show that the deceased admitted that he borrowed certain amounts from the plaintiff and the document is, therefore, not liable to be stamped or registered.
( 3 ) THE learned Additional Judge, having gone through the contents of the document, came to the conclusion that the document is more or less in the nature of testamentary disposition and hence it does not require to be registered nor to be stamped. In support of his view, he relied upon several decisions. So holding, he over-ruled the objection.
( 4 ) SRI. Challa Sitharamaiah the learned counsel for the petitioner-1st defendant contends that the lower court committed illegality in construing that the contents of the document in question are in the nature of testamentary disposition, whereas the contents of the document clearly shyw that an extent of four acres of land was settled by the deceased in favour of P. W. 1 with absolute rights and delivery of possession was also given to P. W. 1 in pursuance of the document and hence it is a gift deed or a settlement deed which is liable to be stamped or registered. He also contends that even if an unregistered document can be tendered in evidence for collateral purposes, the document should necessarily be stamped even for such purposes. He also contends that the second portion of the document comes on which the Plaintiff relies for proving his case under bond or acknowledgment and hence it must necessarily be stamped as the plaintiff relies upon this portion in support of her claim in the suit.
( 5 ) SRI. K. V. Raman a Rao, the learned counsel for the 1st Respondent (Plaintiff) on the other hand, contends that document does not convey or create any rights in the immovable property, bat it contains recitals showing mere declaration that how mush each person mentioned in the document is entitled to have and does not state that the deceased has conveyed any property to any person mentioned in the document. He also contends that the portion on which the plaintiff relies is only an admission of the deceased with regard to the amounts borrowed from the plaintiff and that partion is neither an acknowledgment nor a bond and it is, there fore, not lible to be stamped. He further contends that if the document consists of certain independent and distinct parts and one part is chargeable with stamp duty and the other does not require to be stamped, there is no bar under section 35 (2) for the plaintiff to rely upon that part of the document which is not liable to be stamped.
( 6 ) BEFORE I deal with respective contentions, it is useful to extract the provisions of Section 35 of the Indian STAMP ACT, 1899, it reads as follows:-"35. Instruments not duly stamped inadmissible in evidence, efc:~no instrument chargeable with duty shall be admitted in evidence for any purpose by any person having by law or consent of parties authority to receive evidence, or shall be acted upon, re
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