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2025 Supreme(Online)(Mad) 67131

IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.B.Balaji, J
M.Damodaran – Appellant
Versus
M/s.Ganesh Gold Thread Manufacturing Co. – Respondent
Civil Revision Petition No.2500 of 2025 | CMP.No.14322 of 2025



Advocates:
For the Appellants/Petitioners: Mr.V.P.Raman, Mr.S.Vedhavel
For the Respondents: Mr.Arvind Subramaniam, Mrs.M.Rajalakshmi @ Sathya

A lease deed for three years must be registered and sufficiently stamped to be admissible in evidence, including for collateral purposes.

Headnote:(A) Constitution of India - Article 227 - Registration Act, 1908 - Stamp Act, 1899 - Admissibility of unstamped and unregistered lease deeds - Court held that a lease deed for a period of three years must be registered and cannot be admitted in evidence unless sufficiently stamped. The failure to register the original lease deed and reliance on a photocopy rendered it inadmissible for any purpose, including collateral purposes. The original lease agreement, which was available, could not be impounded when unmarked as an exhibit. Priority must be given to original documents and the procedural onus on stamp duty must be adhered to, as highlighted in several precedents cited. (Paras 12, 39-41)

(B) Evidentiary Matters - The revision petitioner's objection to impounding the lease deed and eschewing the corresponding evidence fails since evidence cannot be dismissed once recorded, but its probative value is subject to the court's final judgment. (Paras 41-42)

Facts of the case:
The petitioner contested an order impounding a lease agreement dated 01.01.2005, asserting it was unmarked in original and only a photocopy had been submitted, which was insufficiently stamped and unregistered. The trial Court mistakenly allowed the document to be marked based on the witness's admission regarding its execution.

Findings of Court:
The Court determined the order impounding the original lease deed was erroneous since the original had not been entered into evidence, emphasizing the inadmissibility of the unstamped lease.

Issues: The primary issue was whether an unregistered lease deed could be admitted in evidence for collateral purposes and whether the trial Court acted correctly in allowing the impounding of the original deed.

Ratio Decidendi: The Court reiterated that only registered documents with adequate stamp duty are admissible for any purpose. Specific case laws underscored that documents must be properly executed and stamped before being admissible as evidence.

Result: Civil Revision Petition partly allowed; the document marked as Ex.A14 was directed to be unmarked but the prayer to eschew evidence was disallowed.

Table of Content
1. introduction of parties and prayer. (Para 1 , 2)
2. arguments against admissibility of lease agreement. (Para 3 , 4 , 5)
3. counterarguments for admissibility of lease. (Para 8 , 9)
4. court's initial thoughts on the case. (Para 10 , 11)
5. legal principles on document admissibility. (Para 12 , 14)

ORDER

The defendant, aggrieved by the order of the trial Court in I.A.No.5 of 2025, directing the lease agreement dated 01.01.2005 to be impounded, is the revision petitioner.

2.I have heard Mr.V.P.Raman, learned counsel for Mr.S.Vedavel, learned counsel for the revision petitioner and Mr.Arvind Subramaniam, learned Senior Counsel for Mrs.M.Rajalakshmi @ Sathya for the respondent.

3.Mr.V.P.Raman, learned counsel for the revision petitioner would contend that the lease agreement in original was allegedly filed along with the plaint originally before this Court. Thereafter, the suit has been transferred to the file of the Commercial Court, Egmore, Chennai. It is the contention of the learned counsel for the petitioner that the original lease agreement was not marked, however, during cross-examination of DW1, the witness was confronted with a photostat copy of the said lease agreement dated 01.01.2005 and since the witness admitted the document, the trial Court has proceeded to mark the same. Subsequently, the present application in I.A.No.5 of 2025 has been taken up for unmarking the said photocopy of an unstamped and unregistered lease deed, which has been marked as Ex.A14 and also to consequently eschew the evidence insofar as Ex.A14 is concerned.

4.Mr.V.P.Raman would further state that the suit is filed for recovery of rental arrears and damages and the primary purpose, for which the lease agreement is sought to be marked, is to establish the quantum of rent and therefore, even for collateral purposes the said document cannot be marked. Further, he would also state that since the document is not sufficiently stamped and remains unregistered, the lease being for a period of three years, the document itself is inadmissible and the payment of deficit stamp duty and penalty will not cure the defect and it cannot be relied on for any purposes whatsoever.

5.It is the further contention of the learned counsel for the petitioner that what has been marked is only a photocopy of the lease agreement and surprisingly, the original, which is claimed to have been filed along with the suit as plaint Document No.1 and which went missing, according to the plaintiff has resurfaced and in the absence of the said original being exhibited before the Court, only the photocopy being marked as Ex.A14, he would contend that the trial Court has erroneously ordered the original lease agreement to be impounded when it is not even before the court in the first place. The learned counsel for the petitioner would further refer to the deposition of PW1, where excepting the lease deed, other documents have been marked and when the said lease deed has not been exhibited or even permitted to be exhibited on the side of the plaintiff, the said document cannot be received as evidence, merely because the defendant's witness admitted to the execution of the lease deed.

6.The learned counsel for the petitioner has relied on the following decisions:

1. Jayanthi R.Hegde Vs. G.M.Shahul Hameed , (2011 SCC Online Kar 4741).

2. G.M.Shahul Hameed Vs. Jayanthi R.Hegde , (2024 7 SCC 719) .

3. Jupudi Kesava Rao Vs. Pulavarthi Venkata Subba Rao , (1971 (1) SCC 545) .

4.1. Bidyut Sarkar Vs. Kanchilal Pai , (2024 SCC Online SC 2603).

5. Vijay Vs. Union of India , (2023 SCC Online SC 1585) .

K.Mohammad Rafee Vs. A.G.Akbar Shereif , (2006 (2) CTC121).

6. Avinash Kumar Chauhan Vs. Vijay Krishna Mishra , (2009) 2 SCC 532) .

7. Bakkiyam and Others Vs. Narayanan , (CRP.No.636 of 2024).

8. Pathrakali Vs. R.Senthilkumaran (2010 1 L.S 177) .

9. Yellapu Uma Vs. Buddha Jagadeeshwara Rao , (2015) 16 SCC 787) .

10. K.B.Saha and Sons Private Limited Vs. Development Consultant Limite

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