stamp act + reg act Flashcards
stamp act purpose an dwhat is a proper stamp?
The Object of the Stamp Act is to consolidate and amend laws relating to stamps and rates of stamp
duties other than those in respect of documents speci ed in Entry 91 of List I , 7th Schedule to Costi in State of Bombay .
Stamp duty is a tax imposed on the sale of property/property ownership by the state government. The payment of stamp duty must berendered in full. The collection of the stamp duty must be completed ontime, or it will incur nes. It is a legal document which can be used
in court as evidence and has meaning.
duly stamped- as applied to an instrument means that the instrument bears an adhesive or impressed stamp of not less than the proper amount and that such stamp has been affixed or used in accordance with the law for the time being in forcein
the state
what is impressed stamp?
and what is an instrument?
(i) labels a xed and impressed by the proper officer
(ii) stamps embossed or engraved on stamped paper
(iii) impression by franking machine
(iv) impression by any such machine as the State
Instrument- includes very document by which any right or liability is, or purports to be,
created, transferred, limited, extended, extinguished or recorded- does not include a
bill of exchange, cheque, promissory note, bill of lading, letter of credit, policy of insurance,
transfer of share, debenture, proxy and receipt
section 34 of stamp act?
evidence
Instruments not duly stamped inadmissible in evidence
○ No instrument is chargeable with duty shall be admitted in evidence by any person having by law or consent, the authority to receive evidence, unless such instrument is duly stamped. If the instrument is written on sheet of paper with impressed stamp - such stamp paper is purchased in the name of one of the parties to the instrument.
HOWEVER
this instrument can be addmitted in evidence on PAYMENT OF STAMP DUTY - the proper amt of stamp duty AND=
1. penalty of 2% for every month from date of execution of agreement
2. amt of penatly should not exceed 4 times the stamp duty deficient
3. if contract or agreement was through 2 or more letters, and any ONE of them have sgtamp duty= it is deemed to be stamped
4. nothin in this provision shal **prevent admissibility in CRIMINAL court **(other than proceedings related to immovable property and order for maintenance) or when such instrument has been executed by or on behalf on the Govt
Section 35 - Admission of instrument where not to be questioned - Where
an instrument has been admitted in evidence, such admission shall not - be
called in question - except as provided in section 58 - in an appeal –
sec 36= irregular stamp
alloows the State Government to set rules for instruments with correct stamp value but an incorrect type of stamp. If the duty owed is paid, such instruments can be certified as properly stamped. Once certified, the instrument is considered validly stamped from the date it was signed. This provision essentially corrects issues of stamp type without invalidating the document entirely.
Jayasingh Narayan Tupe v Sambhaji Baburao Pawar
the court focused on an agreement where the vendor agreed to hand over possession of land to the vendee before the sale deed was executed. The court concluded that the agreement functioned as a conveyance and, thus, required to be stamped as per the Maharashtra Stamp Act. The agreement could not be used as evidence until stamp duty was paid, and the document was adjudicated upon, highlighting the importance of proper stamp duty for validity under the Act.
Purpose of
the registration Act
Jogi Das v. Fakir Panda:
i)To provide a method of public registration of documents so as to give information to people regarding
legal rights and obligations arising or a ecting a particular property,
ii)To perpetuate documents which may afterwards be of legal importance,
iii) And also to prevent fraud.
iv)Registration lends inviolability and importance
define immovable and moveable property
“Immovable Property” includes
* land, buildings, hereditary allowances, rights to ways, lights, ferries,
fisheries or any other benefit to arise out of land, and things attached
to the earth, or permanently fastened to anything which is attached to
the earth, but not standing timber, growing crops nor grass;
* allowances which are payable out of the income of land and
buildings.
* “Movable Property” includes
* standing timber, growing crops and grass, fruit upon and juice in
trees, and property of every other description, except immovable
property
S.17. Documents of which registration is compulsory- 17(1) The following documents shall be
registered:
Section 17 of the Registration Act mandates registration for certain documents, including:
- Gifts of immovable property
- other Non-testamentary documents involving immovable property rights such as declaring,assignong, extinguishing or limiting in present or future any rights or title or interest over ₹100 in value
- Leases over one year or annual rent
- Decrees, orders, or awards that affect property rights
- Sale contracts and developer agreements for property
- power of attourney docs authorising transfer of immovable property
- Title deed deposit agreements for loans
- Sale certificates issued by authorities
- Company documents for mergers or transfers involving property
** 17(2) Exceptions- Nothing in (b) or (c) shall apply to a i) deed of composition, ii) any decree or
order of a court expressed to be made on a compromise and comprising immovable property other than that which is the subject-matter of the suit or proceeding, iii) grant of immovable property by Govt**
Suraj Lamp &Industries (P) Ltd.(II) v. State of Haryana, SC
the at allottee and the purchaser entered into a sale agreement, wherein the allottee delivered
possession upon the purchaser’s payment of the entirety of the purchase money. Second, the allottee
granted an “irrevocable” GPA (a “general power of attorney”, as per the terms of the Contract Act)
through which the allottee authorised the buyer to deal freely with, manage, and even alienate
HELD
GPA Sales Do Not Transfer Ownership: The court held that a General Power of Attorney cannot be used as an instrument to transfer property ownership. Such transactions do not convey any right, title, or interest in the immovable property.
Need for a Registered Sale Deed: For any valid transfer of immovable property, the court emphasized that a registered sale deed is essential under the Transfer of Property Act, 1882, and the Registration Act, 1908. Only a registered sale deed transfers legal title in property.
Exceptions for Genuine POAs: While rejecting the practice of using GPA for property sales, the court noted that genuine use of POA, such as for managing the property on behalf of someone, is still valid and permissible.
documents for which registation is optional
Documents of which registration is optional - Section 18 – May be
registered
* The Principal Act had a list of such documents –
* The 2013 amendment:
* The following documents may be registered under this Act,
namely:––
* (a) Wills, authority to adopt by a Will;
* (b) any document notified by the State Government.
S.47. Time from which the registered doc operates
from the time of execution not time of registration like basically from the time it was created ig
S.48. Registered documents relating to property when to take effect against oral agreement
All non-testamentary documents duly registered under this Act, and relating to any property, whether
movable or immovable,** shall take effect against any oral agreement or declaration relating to
such property- unless where the agreement or declaration has been accompanied or followed
by delivery of possession** and the same constitutes a valid transfer under any law for the time being in
forc
Case Law – Rana Vidya Bhushan Singh Vs. Ratiram
In the case of Rana Vidya Bhushan Singh v. Ratiram (1969), the Supreme Court of India held that while an unregistered document concerning an immovable property transaction cannot be used as primary evidence for the sale itself, it may still be admissible in court for “collateral purposes.” This means that such an unregistered document can be used to prove matters that are incidental or secondary to the main purpose of the document.
Key Points:
- Primary Purpose vs. Collateral Purpose: The unregistered document cannot establish the transfer of title or ownership of the property, as these require registration.
- Collateral Use Permitted: The document may be admitted as evidence to show ancillary matters, such as the nature of possession or intent of the parties, but not to enforce the main transaction itself.
This case thus carved out an exception allowing unregistered documents to serve as evidence for purposes other than proving the direct transaction they were meant to represent.
Case Law – M/S K.B.Saha And Sons Pvt. Ltd vs M/S Development
Consultant Ltd
Held: - Explaining what a co lateral transaction / purpose is -
o A document required to be registered is not admissible into
evidence u/s 49.
o Such unregistered document can however be used as an
evidence of collateral purpose as provided in the proviso to
section 49.
o A collateral transaction must be independent of, or divisible
from, the transaction to effect which the law required
registration.
o A collateral transaction must be a transaction not itself
required to be effected by a registered document, that is, a
transaction creating, etc. any right, title or interest in
immoveable property of the value of one hundred rupees
and upwards.
o If a document is inadmissible in evidence for want of
registration, none of its terms can be admitted in evidence
and that to use a document for the purpose of proving an
important clause would not be using it as a collateral
purpose.
