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2025 Supreme(Bom) 1180

IN THE HIGH COURT OF JUDICATURE OF BOMBAY AURANGABAD BENCH 
S.G. CHAPALGAONKAR, J.
Salim Baig S/o Akhtar Baig - Appellant
Versus
Sayyad Nawid S/o Sayyad Nazir - Respondent
Writ Petition No. 13409 of 2023
Decided On : 29-07-2025

Advocates:
Advocate Appeared:
For the Appellant : J.M. Murkute
For the Respondent: E.S. Potdar

Unregistered and insufficiently stamped documents are inadmissible for any legal purpose, including temporary injunctions, preventing plaintiffs from establishing claims based on such documents.

Headnote:(A) Indian Stamp Act, 1899 - Section 35 - Injunction - Temporary injunction granted in favor of plaintiff against the defendant regarding suit property based on an unregistered and insufficiently stamped agreement - Court emphasizes that unstamped instruments cannot be admitted in evidence - Since the agreement was inadmissible, the lower courts' conclusion supporting the plaintiff was erroneous. (Paras 16, 19, 21)

(B) Agreement to sell - Nature of the agreement as a mere development agreement indicated by the defendant's claims of intended development but lack of possession delivery to plaintiff and no compliance with stamp duties - Courts cannot act on an unstamped document. (Paras 10, 15, 20)

Facts of the case:
The petitioner, the original defendant, agreed to sell land to the respondent, the plaintiff, received Rs. 22,00,000 as earnest money under a notarized agreement for development, but failed to clear encumbrances or execute the sale deed, leading to a temporary injunction against him.

Findings of Court:
The order allows temporary injunction against alienation but quashes the order against disturbing possession, stressing admissibility of unstamped documents under Section 35 of the Indian Stamp Act.

Issues: The main issues included whether the notarized agreement could be considered valid for temporary injunction when it is unregistered and insufficiently stamped, and if the plaintiff has established prima facie possession of the suit property.

Ratio Decidendi: The court ruled that the temporary injunction was granted erroneously on the basis of an inadmissible agreement, clarifying that unstamped documents cannot support claims, even for collateral purposes, and the plaintiff's lack of actual possession was crucial in this context.

Result: Writ petition partly allowed; the earlier injunction against alienating the property is enforced, but the injunction against disturbing possession is set aside.

Table of Content
1. nature of the original agreement and proceedings (Para 2 , 3 , 4 , 5 , 6 , 7)
2. existence and admissibility of notarized documents (Para 9 , 10 , 11 , 12 , 13)
3. implications of unstamped agreements and possession (Para 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21)
4. modification of injunctive relief order (Para 22 , 23)

JUDGMENT :

S.G. CHAPALGAONKAR, J.

1. Rule. Rule made returnable forthwith, heard finally by consent of parties.

2. The petitioner/defendant takes exception to order dated 10.05.2023, passed by learned District Judge, Beed in Misc. Civil Appeal No.91 of 2022, thereby upholding order dated 21.09.2022 passed by learned Joint Civil Judge Senior Division, Beed below Exhibit-5, in Special Civil Suit No.93 of 2022, thereby granting temporary injunction in favour of respondent/plaintiff.

3. The brief facts giving rise to the present petition are as under.

4. Petitioner/original defendant is owner of suit property. He agreed to sell suit land to respondent/plaintiff for consideration of Rs.92,50,000/- (Rs. Ninety Two Lac Fifty Thousand only). Accordingly, executed tabe-isar-pavti/Notarised Agreement. An earnest money of Rs.2,00,000/- was paid. After execution of agreement, plaintiff paid further installment on 08.07.2020 and 11.11.2020. Eventually, defendant received total earnest money of Rs.22,00,000/- lakh (Rs. Twenty Two Lac only). The sum and substance of agreement is that plaintiff was permitted to develop land and create saleable plots over suit property and after selling them, to pay consideration to defendant in installments within time limit. Defendant was to execute bharna-pavtis time to time and also execute documents in favour of prospective purchasers of plots. Defendant was under obligation to clear-off encumbrances upon suit plots and finally execute sale deed of balance land by 25.06.2022 after receiving total consideration.

5. Plaintiff contends that he was ready to pay balance consideration amount and requested defendant to clear-off loans; however, he failed to do so and execute sale deed.

6. Defendant took stand that he was intending to develop property and convert in saleable plots; therefore, agreement was executed. However, plaintiff failed to develop property or sell out plots within specified time limit. Pertinently defendant admitted receipt of amount of Rs.22,00,000/- (Rupees Twenty Two Lakh Only).

7. Learned Trial Court, after considering rival contentions, allowed application Exhibit-5 and temporarily injuncted defendant from alienating suit property by any mode or disturbing possession of plaintiff till disposal of suit, except by following due process established by law. The aforesaid order was subjected to challenge before learned District Judge in Misc. Civil Appeal No.91 of 2022, who affirmed order and dismissed appeal.

8. Heard learned Advocates appearing for respective parties.

9. Mr. J.M. Murkute, learned Advocate appearing for petitioner submits that tabe-isar-pavti dated 26.06.2020 can never be termed as agreement to sell in strict sense. In fact, it was agreement for development of property and plaintiff was expected to carve out plots and facilitate sale to prospective purchasers within specified time limit and pay agreed amount to defendant.

10. Mr. Murkute Points out that document dated 26.06.2020 is neither registered nor it is stamped, but simply notarized on bond paper of Rs.100/-. He would further point out that suit land was never put into possession of defendant, although he was permitted to take necessary steps to carve out plotting and develop property for sale. However, Courts below relied upon contents of inadmissible and unregistered document, granted temporary injunction against defendant.

11. In support of his contentions, he relies upon judgment of Hon’ble Supreme Court in case of Avinash Kumar Chauhan Vs. Vijay Krishna Mishra , 2009 AIR SCW 979 . According to Mr. Murkute, in absence of impounding document, it could not have been considered even for collateral pu

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