IN THE HIGH COURT OF KARNATAKA AT BENGALURU
KRISHNA S. DIXIT, J.
K. Hemalata, W/o. R. Ramesh & Ors. - Petitioners
Versus
Nagaraju, S/o. Ramaiah & Ors. - Respondents
Writ Petition No.1484 of 2020 (GM-CPC) C/w Writ Petition No.13684 of 2020 (GM-CPC)
Decided On : 06-02-2021
Karnataka Stamp Act, 1957 - Chapter IV – Section 2(e) - Karnataka High Court Act, 1961 – Section 58 – Appeal - Some remedy in appeal or revision proceedings – Held, object of Chapter IV of Act is to ensure that what is due to Caesar reaches HIM and therefore, construction of these provisions should be consistent with that object; she also submits that although a limited window is open as provided u/s 58 of said Act, for raising grievance in appeal or otherwise, fraud on Exchequer may remain unearthed, should there be no occasion for such appeal or revision; these contentions are ingenious, cannot be disputed; however, if there is arguably such a lacuna, it is for law maker to address it; but this court cannot assume role of legislator - Writ Petition allowed.
ORDER :
The question of law that arises for consideration of this court in these two similar cases relates to invocability of the provisions of Chapter IV of the Karnataka Stamp Act, 1957, for impounding of unduly or unstamped instruments even after they are marked & admitted to evidence; the subject documents have been admitted to evidence sans objection when they were so admitted, is not in dispute.
2. After service of notice, the respondents having entered appearance through their counsel, resist the writ petitions making submission in justification of the impugned orders and the reasons on which they are predicated.
3. Both the sides have banked upon the following decisions in support of their version & counter version:
(i) M/s Cave Caterers Private Limited vs. M/s Sudha Enterprises, ILR 2011 KAR 2017.
(ii) W.P.No.27694/2012 dated 20.03.2014 Smt. Huchamma and others Vs. Sri. Chandrashekar.
(iii) W.P.Nos.49640-49651 of 2017 (GM-CPC) between S. Byregowda and others Vs. Saramma Joseph Thannickal.
(iv) W.P.No.49424 of 2017 (GM-CPC) between R Mahesh and Others Vs. B.P. Venugopal.
(v) C.R.P.No.505 of 2018 between P.N. Babu Vs. K.S. Ananth and Others.
(vi) Digambar Warty and Others Vs. District Registrar, Bangalore Urban District and Another, ILR 2013 KAR 2099.
4. I have heard the learned counsel for the parties and perused the petition papers. There appear to be decisions on both the sides of the spectrum; most of these decisions are rendered by learned single Judges of this court and apparently they are fact-specific; however, some light is thrown by the Division Bench of this court in Digambar Warty & others Vs. District Registrar, Bangalore Urban District, ILR 2013 KAR 2099; the observations at para 36 are as under :
5. What emerges from the above observations is that once an instrument as defined u/s 2(e) of the 1957 Act is admitted in evidence & marked, as contradistinguished from marking per se, sans objection thereto, the issue as to inadmissibility of the said instrument on the ground of absence or insufficiency of stamp duty on such instruments cannot be raised in the self same proceedings; presum
It is now settled law that decisions on questions of land tax, income tax and rating assessments constitute an important exception to general rules as to res judicata, and that such decisions given i....
A document admitted in evidence cannot be questioned for insufficiency of stamp duty, but courts have a mandatory duty to impound such documents regardless of any objections raised.
Once an instrument is admitted in evidence without objection, it cannot subsequently be held to be inadmissible on the ground of being insufficiently stamped, as per Section 36 of the Indian Stamp Ac....
Once a document is admitted in evidence, it cannot be questioned later for insufficient stamping under Section 36 of the Indian Stamp Act.
The court established that trial courts must diligently assess the admissibility of documents, particularly regarding stamping and registration, and have the authority to impound insufficiently stamp....
Allowing an instrument with insufficient stamp duty to pass unchallenged, merely due to technicalities, would undermine legislative intent and fiscal interests of State – Court must vigilantly preven....
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