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2002 Supreme(Kar) 798

Karnataka High Court
Judges : V.GOPALA GOWDA
LAKSHMAMMA - Appellant
Versus
RIYAZ KHAN - Respondent
W. P. 42747 Of 2002
Decided On : 12/20/2002

Insufficiently stamped documents are not admissible as secondary evidence, and the Trial Court has a duty to decide the admissibility of documents when objected to on grounds of stamp duty.

Headnote:

Stamp Duty - Admissibility of Document - Karnataka Stamp Act, 1957 - S. 35, S. 36 - Secondary evidence of insufficiently stamped document - Supreme Court's interpretation of the provisions - Court's decision to quash the impugned order

Fact of the Case:

Petitioners filed writ petition challenging the order passed by the Trial Court in a suit for permanent injunction. The suit was based on an alleged agreement of sale, which the petitioners disputed, claiming ownership through a registered sale deed obtained in a previous suit. The Trial Court marked the alleged agreement of sale as an exhibit subject to objection due to insufficient stamp duty. The Court directed the respondents to pay the deficit stamp duty and penalty, which was challenged in higher courts. During the trial, the respondents sought to confront the petitioners with a Xerox copy of the document, which was objected to by the petitioners. The Trial Court rejected the objections, leading to the writ petition.

Finding of the Court:

The Court found that the Trial Court's order permitting confrontation of the Xerox copy was contrary to the law laid down by the Supreme Court and the provisions of the Karnataka Stamp Act. The Court held that the document was not admissible as secondary evidence due to insufficient stamp duty, and the Trial Court's reliance on previous judgments was misplaced. Consequently, the impugned order was quashed, and the objections raised by the petitioners were upheld.

Issues: Admissibility of insufficiently stamped document as secondary evidence, Confrontation of Xerox copy of document during trial

Ratio Decidendi: The Court relied on the interpretation of S. 35 and S. 36 of the Karnataka Stamp Act, 1957, and the Supreme Court's judgments to establish that insufficiently stamped documents are not admissible as secondary evidence. The Court also emphasized the Trial Court's duty to decide the admissibility of documents when objected to on grounds of stamp duty.

Final Decision: The writ petition was allowed, and the impugned order was quashed. The objections raised by the petitioners were upheld, leading to a decision in their favor.

V. GOPALA GOWDA, J.


( 1 ) PETITIONERS represented by their power of attorney holder who are some of defendants in Original Suit have filed this writ petition questioning the correctness of the order dated 2-11-2002 passed by the V addl. City Civil Judge in OS 6674/98 produced at Annexure-E to the petition and sought for issuance of a writ of certiorari to quash the same urging various facts and legal contentions.

( 2 ) THE brief facts are stated for the purpose of considering and answering the rival legal submissions made on behalf of the parties. Respondents 1 to 4 herein have filed suit for permanent injunction on the basis of the alleged agreement of sale dated 28-2-1997 said to have been executed by one Mr. Khasim Khan and children. In the said original suit written statement was filed by the petitioners disputing the genuineness of the documents and further contended that they have been in possession and enjoyment of the property bearing Sy. No. 21 of devarajeevanahalli measuring 2 acres 28 guntas as absolute owners as they have obtained registered sale deed dated 12-3-1999 in their favour through the Court on the strength of the Decree obtained by them in OS 21/97 suit for specific performance of contract in respect of the property in question. It is their case that earlier to the said sale deed referred to supra they were tenants of the property and they obtained agreement of sale from the erstwhile owner of the property through his power of attorney holder.

( 3 ) ON the basis of pleadings, the Trial court framed issues. In support of the claim of respondents 1 to 4, the first respondent was examined as PW. 1. During his evidence petitioners raised objection for marking of the alleged agreement of sale dated 28-2-1997 and the same was marked subject to objection as per Ex. P. 2. Thereafter, the Trial court has passed an order on the question of payment of duty and penalty upon the document under the provisions of Karnataka stamp Act of 1957 by passing the order dated 28-3-2000 and they were directed to pay the same, against which order, respondents 1 to 4 filed CRP No. 1828/2000 before this Court questioning the legality of the same which came to be dismissed by order dated 8-2-2002 (reported in 2002 AIR kant HCR 2568 : AIR 2003 Karnataka 3 ). Against the said order Spl. Leave Petition in no. 12084/2002 was filed before Honble supreme Court wherein the Apex Court confirmed the order passed in CRP by dismissing the SLP vide its order dated 15-7-2002. The Review Petition was also filed by respondents and the same came to be dismissed by this Court as per its order dated 15-6-2002.

( 4 ) THEREAFTER, respondents 1 to 4 filed memo under Order 8 Rule 10 to reject the written statement of the petitioner on the alleged ground that the same is not filed within time. The said memo was rejected on 18-9-2002 by passing a considered order. Thereafter, one more application was filed by the respondents under S. 113 CPC which came to be dismissed as withdrawn. The respondents herein have been filing application after application with a view to protract the proceedings to gain time for payment of duty and penalty on the documents and ultimately they failed to pay duty and penalty of Rs. 21,97,900/- upon the document. Since they did not pay the said amount, document Ex. P. 2 was impounded and referred the matter to the Deputy Commissioner for collecting the duty and penalty under the provisions of Karnataka stamp Act. Thereafter, they adduced evidence and examined one of the respondents PW 2 partly.

( 5 ) DURING the course of evidence of the defendants, the counsel for the respondents/plaintiffs sought to confront with the xerox copy of Ex. P2 as respondents to identify the signatures of executant as well as witnesses in the Xerox copy of the document ex. P2. The same was seriously objected to by the petitioners counsel and thus thereafter, the petitioners were directed by the court below to file written objections for marking the si









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