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2024 Supreme(Raj) 2377

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR 
NARENDRA SINGH DHADDHA, J.
Babulal Sharma, S/o Badri Narain Sharma - Appellant
Vs.
Rahul Maheshwari, Son Of Late Shri C.b. Gupta - Respondent
Civil Writ Petition No. 17733 Of 2015
Decided On : 06-12-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr. M.M. Ranjan, Sr. Adv. With Mr. Rohan Agarwal
For the Respondents: Mr. Himanshu Agarwal for Mr. Anurag Shukla

An insufficiently stamped and unregistered document is inadmissible in evidence; thus, it must be impounded by the trial Court for assessment of stamp duty and penalties.

Headnote:(A) Rajasthan Stamps Act, 1998 - Section 39 - Insufficiently stamped and unregistered document - The trial Court dismissed the defendant’s application to impound the document, which should have been sent for stamp duty and penalty assessment - The Court determined that the document's inadmissibility in evidence requires impounding. (Paras 4, 5)

(B) Admissibility of Evidence - A document that is insufficiently stamped and unregistered is inadmissible in evidence and must be impounded by the trial Court. (Paras 4, 5)

Facts of the case:
A civil writ petition filed by the defendant challenges the dismissal of an application asserting that an agreement was insufficiently stamped and unregistered, and thus should be impounded and sent to the Collector for stamp duty determination.

Findings of Court:
The Court found merit in the defendant's argument that the agreement should have been impounded and sent for the determination of stamp duty and penalty.

Issues: The primary issue addressed is whether the trial Court was correct in dismissing the application to impound an insufficiently stamped and unregistered agreement.

Ratio Decidendi: The Court ruled that since the agreement was insufficiently stamped and unregistered, it was the duty of the trial Court to impound it and send it to the Collector for evaluation of stamp duty and penalties.

Result: Petition allowed; trial Court's order set aside.

Order :

NARENDRA SINGH DHADDHA, J.

This civil writ petition has been filed by the petitioner-defendant (for short ‘the defendant’) being dissatisfied with the order dated 12.10.2015 passed by the Additional District and Sessions Judge No.2, Jaipur District Jaipur in civil suit No. 4/2015 whereby the application filed by defendant under Section 39 of Rajasthan Stamps Act, 1998 (for short ‘the Act of 1998’) has been dismissed.

Learned counsel for the defendant submits that respondent No.1-plaintiff (for short ‘the plaintiff’) filed a suit against the petitioner-defendant No.2 and respondents Nos. 2 to 5 for specific performance and permanent injunction in which the defendant filed an application under Section 39 of the Act of 1998 as well as Section 151 CPC before the trial Court that the so-called agreement dated 02.06.2004 is insufficiently stamped and unregistered, so, the said document is inadmissible in the evidence but the trial Court dismissed the application filed by the defendant. Learned counsel further submits that it is an admitted position that the said document is insufficiently stamped and unregistered, so the trial Court had to impound the said document and it should have send the so-called agreement to the Collector (Stamps) for determination of the stamp duty and penalty thereon.

Learned counsel for the respondents has opposed the arguments advanced by counsel for the defendant.

I have considered the arguments advanced by counsel for the parties and perused the impugned order.

It is an admitted position that the so-called agreement is insufficiently stamped unregistered. So the trial Court ought to have impounded the said document and the same should have been sent to the Collector (Stamps). So the order dated 12.10.2015 passed by the trial Court qua application under Section 39 of the Act of 1998 deserves to be set aside.

Petition filed by the defendant is allowed. The order dated 12.10.2015 passed by the trial Court qua application under Section 39 of the Act of 1998 stands set aside The trial Court is directed to impound the so-called agreement dated 02.06.2004 and send the same to the Collector (Stamps) for determination of the stamp duty and penalty thereon.

Pending application(s), if any, stand(s) disposed of.

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