V. G. ARUN
Kainikkara Abdurahiman – Appellant
Versus
Aalukkal Yunus – Respondent
JUDGMENT :
V.G. ARUN, J.
1. The short question arising for consideration in this original petition is whether Ext.P1 is a bond or an agreement.
2. The petitioner filed O.S. No. 183 of 2013 before the Sub Court, Tirur for realisation of an amount of Rs. 11,20,000/- from the respondent, based on Ext.P1 document and a cheque dated 20.03.2013. In his written statement, the defendant/respondent contended that Ext.P1 is a bond and being insufficiently stamped, the document is liable to be impounded. Before commencement of trial, the court below considered the question as to the nature of the document. The petitioner contended that Ext.P1 is an agreement in terms of Article 5(C) of the Schedule attached to the Kerala Stamp Act, 1959 and hence, the stamp duty payable is only Rs. 50. The respondent, on the other hand, contended that the document is a bond as defined under Section 2(a) of the Kerala Stamp Act. By Ext.P4 order, the document is held to be a bond. Hence, the original petition.
3. Learned Counsel for the petitioner referred to Ext.P1 and contended that the terms and the wordings in Ext.P1 clearly reveals that it is intended to be an agreement. It is submitted that the parties themse
Distinguishing feature of a bond is that the obligation must have been created in the instrument itself and that if the obligation was a pre-existing one, it does not partake the character of a bond.
The Court determined that the document in question was an agreement rather than a bond based on its recitals and past obligations.
Point of law: In a case where plaintiff come forward to seek a decree for specific performance of a contract of sale of immovable property on basis of an oral agreement or a written contract, heavy b....
The court established that a document can meet promissory note criteria but still be classified as a bond if not payable to order or bearer, under the Stamp Act.
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