RAJASTHAN HIGH COURT
Mahendar Kumar Goyal, J.
Dinesh Kumar Prajapat - Appellant
Versus
Dr. Vinod Pankaj & Ors. - Respondents
S.B. Civil Writ Petition No. 13007 of 2019
Decided On : 23-01-2023
Stamping - Evidence - Stamp Act, 1899 - Sections 35 - Insufficiently stamped documents are inadmissible in evidence for any purpose, including collateral purposes, unless stamp duty is paid.
Fact of the Case:
The petitioner filed a suit for permanent injunction and damages, seeking to exhibit an agreement to sell, which was objected to by the respondent on grounds of being insufficiently stamped and unregistered.
Finding of the Court:
The court upheld the trial court's decision, stating that insufficiently stamped documents are not admissible in evidence, even for collateral purposes, as per established legal principles.
Issues: Whether an insufficiently stamped and unregistered document can be admitted in evidence for collateral purposes.
Ratio Decidendi: The court reiterated that according to the Stamp Act, an insufficiently stamped document cannot be admitted in evidence unless the requisite stamp duty is paid.
Result: The writ petition is dismissed.
ORDER
1. Although, the matter comes up on an application no.1/2021 filed by the respondents seeing vacation of ex parte interim order; but, on the request of learned counsels for the respective parties, the matter is heard finally at this stage.
2. This writ petition is directed against the order dated 25.03.2019 passed by learned Senior Civil Judge, Keshorai Pattan, District Bundi whereby, an application filed by the respondent no.1/defendant no.1 for not taking the subject document in evidence, has been allowed.
3. The relevant facts in brief are that the petitioner/plaintiff filed a suit for permanent injunction and damages against the respondents/defendants. During the course of trial, the plaintiff wanted to exhibit an agreement to sell which was objected by the respondent no.1. Sustaining the objection, the learned trial Court has observed that insufficiently stamped and unregistered document is inadmissible in evidence even for collateral purpose.
4. Assailing the order, learned counsel for the petitioner submits that unstamped/insufficiently stamped document as also unregistered document is admissible in evidence for collateral purpose and since, he wanted to exhibit the subject sale agreement to demonstrate demarcation of the subject property, it was admissible in evidence. He, therefore, prays that the writ petition be allowed, the order dated 25.03.2019 be quashed and set aside and the learned trial Court may be directed to permit him to exhibit the subject document. Learned counsel, in support of his submissions, relied upon following judgements of Hon'ble Apex Court of India:- (I) S. Kaladevi Vs. R. Somasundaram & Ors.: AIR 2010 Supreme Court 1654 & (II) Bondar Singh & Ors. Vs. Nihal Singh & Ors.: AIR 2003 Supreme Court 1905.
5. Per contra, learned counsel for the respondent no.1 would submit that insufficiently stamped document is not admissible in evidence for any purpose. He, therefore, prays for dismissal of the writ petition.
6. Heard. Considered.
7. It is trite law that insufficiently stamped document is not admissible in evidence even for collateral purpose. Since, the subject document is not only unregistered; but, insufficiently stamped also, it was not admissible in evidence. In view thereof, in the considered opinion of this Court, the learned trial Court did not err in passing the order dated 25.03.2019.
8. Their Lordships have, in case of Sita Ram Bhama Vs. Ramvatar Bhama: (2018) 15 SCC 130, while affirming findings of the learned trial Court holding the document in question to be inadmissible in evidence being inadequately stamped and unregistered, held that while, an unregistered document which is compulsorily registrable, can be looked into in evidence for collateral purpose, an unstamped/insufficiently stamped document cannot be accepted in evidence even for collateral purpose unless the same is subjected to payment of stamp duty and penalty.
9. Similar view has been expressed by the Hon'ble Supreme Court of India in case of Yellapu Uma Maheshwari & Anr. Vs. Buddha Jagadheeswararao & Ors.: (2015) 16 SCC 787.
10. The judgement relied upon by learned counsel for the petitioner in case of Bondar Singh & Ors. (supra) is of no help to him inasmuch in that case, the Hon'ble Court dealt with the provisions of the Registration Act, 1908 (for brevity, 'the Act of 1908') only and was not concerned with the provisions of the Stamp Act, 1899 (for brevity, 'the Act of 1899'). A co-ordinate Bench of this Court has, in case of Prembai Vs. Khurshid Bano & Ors.: 2014 (3) RLW 1874 (Raj.), after taking into consideration the provisions of Section 35 of the Act of 1899, proceeded to hold as under:-
Sita Ram Bhama vs. Ramvatar Bhama: (2018) 15 SCC 130
Yellapu Uma Maheshwari & Anr. vs. Buddha Jagadheeswararao & Ors.: (2015) 16 SCC 787
Amrendra Pratap Singh vs. Tej. Bahadur Prajapati & Ors : (2004) 10 SCC 65
Insufficiently stamped documents are inadmissible in evidence for any purpose unless stamp duty is paid.
An unstamped document is inadmissible for any purpose, including collateral purpose, as per Section 35 of the Indian Stamp Act, 1899.
Unregistered and unstamped documents are inadmissible in evidence and cannot be impounded for stamp duty under the Indian Stamp Act.
The court clarified that an unstamped document marked as evidence must be impounded and assessed for stamp duty prior to its admissibility in court.
The central legal point established in the judgment is the requirement to consider the provisions of the Indian Stamp Act, 1899 and the Registration Act, 1908 in determining the admissibility of agre....
Unregistered sale deeds are inadmissible as evidence in property transactions requiring registration; compliance with registration is necessary for evidential validity.
Proper stamping and registration are essential for the admissibility of unregistered documents affecting immovable property as evidence in a suit for specific performance. The court has a duty to dec....
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