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2006 Supreme(AP) 1204

2006(3) L.S. 343
IN THE HIGH COURT OF JUDICATURE ANDHRA PRADESH : : AT HYDERABAD
Present:
The Hon’ble Mr. Justice
L. Narasimha Reddy
Lakkaraju Radha Krishna ..Petitioner
Vs.
Pyarle Sri Rama Sarma
& Ors., ..Respondents
C.R.P.No.2123/06 Date:16-10-2006
Mr.A. Ramakrishna, Advocate for the Petitioner.
Mr.M.Sudheer Kumar, Advocate for the Respondent No.1.

Headnote:INDIAN STAMP ACT, Secs.35 & 36 - REGISTRATION ACT, Sec.49 - Suit for specific performance of agreement of sale - While trial of suit in progress petitioner/4th defendant sought to relay on certified copy of lease deed filed in different proceedings - Trial Court refusing to receive document since same neither stamped nor registered - Petitioner contends that he is not party to document nor he proposes to enforce any rights and obligations under it and he only wants to impress upon Court about inconsistency of stands, on part of respondents as to fact of possession.

        Bar contained in Sec.35 of Stamp Act as to admissibility of unstamped document is absolute - When document cannot be received in evidence on ground that it is not duly stamped, secondary evidence thereof, is equally inadmissible in evidence - Even for collateral purpose an unstamped or insufficiently stamped document cannot be received in evidence.

        Certified copies of documents received in evidence in other set of proceedings, stand on different footing - Stamp duty is payable on document, and not on transaction and stamp duty cannot be collected on certified copy of document which has already been received in evidence in another set of proceeding.

        Proviso to Sec.49 of Regis-tration Act permits of an unregistered document to be received in evidence, for collateral purposes - Such facility not created under Stamp Act and that unstamped or insufficiently document or instrument cannot be received in evidence even for collateral purposes.

        “Collateral purpose” -“Collateral matter” - Distinction - Stated - Very expression “collateral” connotes that it exists by side of main entity and such purposes are never independent of main transaction - If document is inadmissible even for collateral purposes it connotes that document cannot be received in evidence not only in context of principal transaction, but also collateral purposes attached to transaction - “Collateral matter”, on other hand, is something, which is totally divorced and different from transaction, evidenced by document - Document may contain certain recitals, which are totally unrelated to transaction, which it intends to bring about - Therefore, test is, as to whether person who is relaying upon unstamped or insufficiently stamped document, intends to prove transaction covered by document or any purpose collateral to it or relies on it, in a totally different, but collateral matter - In former case, it is inadmissible and latter, it can be received in evidence.

        Even if document is insufficiently stamped, it can be pressed into service by person who is not a party to it, but only for a purpose, which is totally unrelated to transaction - In this case, purpose for which petitioner intended to relay on document, is totally unrelated to transaction brought about document in question - Document shall be received in evidence for limited purpose of making reference to recital as to nature of possession claimed by respondents vis-a-vis suit schedule property - CRP, allowed.

       

J U D G M E N T

Respondents 1 and 2 filed O.S.No.34 of 2003 in the Court of III Additional District Judge, Guntur, against respondents 3 to 5 and the petitioner herein, for the relief of specific performance of an agreement of sale dated 05-05-2003 in respect of the land in R.S.Nos.971 /1 and 971/2 of Vengalanagar, Bapatla. The petitioner herein, figured as defendant No.4 in the suit. The trial of the suit is in progress. On behalf of the petitioner, a document dated 05-05-2003 was sought to be relied upon. Initially, it was received evidence, as Ex.B-8, subject to the objection raised by the respondents 1 and 2 (for short ‘the respondents’, since is endorsed that the other respondents are not necessary). Respondents filed a revision before this Court against the said endorsement. The revision was allowed and the question, relating to the admissibility of the document, was directed to be decided, before the document was received in evidence. It was in this context, that the petitioner on the one hand, and the respondents, on the other hand, have put forward their contentions, on the admissibility of the document. Through a reasoned order, dated 23-01-2006, the trial Court held that the document is inadmissible. The same is challenged in this C.R.P.

2. Sri A. Ramakrishna, learned counsel for the petitioner submits that the document in question is a certified copy obtained from another court, and the objection, as to absence or inadequacy of stamp duty; cannot be raised. He contends that the petitioner is not a party to the transaction, under the document in question, nor does he propose to enforce any rights and obligations under it, and in that view of the matter, it ought to have been received in evidence.

3. Sri M.Sudhir Kumar, learned counsel for the respondents, on the other hand, submits that the prohibition contained under Section 35 of the Indian Stamp Act (for short ‘the Act’) is absolute, and unstamped document cannot be received in evidence, for any purpose, whatever. Placing reliance upon several judgments, touching on the subject, he contends that even a secondary evidence, of an instrument, which was required to be stamped, is inadmissible, unless it is properly stamped. He submits that the purpose, for which the document is sought to be relied upon, becomes irrelevant, in the context of Section 35, unlike the facility created for admission of unregistered documents, for collateral purposes.

4. The short question, that arises for consideration in this revision, is, as to whether the certified copy of a lease deed, filed in a different set of proceedings, to which the petitioner is not a party, is inadmissible in evidence, on the ground that it is not properly stamped and registered.

5. The admitted facts are that the document in question is an agreement of lease, and the petitioner is not a party to it. It is also not disputed that the document was neither stamped nor registered. The document is said to have been filed in LGC No.93 of 2003, by the alleged lessees it, and the petitioner obtained a certified copy thereof.

6. Before undertaking discussion of the matter, with reference to the relevant provisions and decided cases, it is necessary to refer to the context, in which the document was sought to be relied upon.

7. Respondents filed the suit for the relief of specific performance of an agreement of sale, and for delivery of possession of the suit schedule property. The petitioner alleged that, on the one hand, a suit is filed for specific performance of contract and recovery of possession, and on the other hand, the respondents have inducted the third party into possession, under the document in question, by incorporating a recital to the effect that the possession of the property was delivered to them. He wanted to impress upon the trial court, about the inconsistency of the stands, on the part of the respondents.

8. The bar contained in Section 35 of the Act, as to admissibility of documents, which are















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