Understand unregistered sale deed as evidence

This query is : Resolved 

17 July 2019

I entered into an oral agreement to buy a property. I got the sale deed prepared on a rs.5000/- stamp paper and obtained circle rate valuation and prepared stamp duty drafts payable to registrar towards deficit stamp duty. Seller executed the sale deed at his home and asked me to go to registrar office where he would visit at a later time to complete the registration formalities. But later he didn't turn up at registrar office at all and further refused to get the sale deed registered and handover possession.
I as adviced by my lawyer filed a suit for specific performance praying for execution , registration of deed and handover of physical possession or alternatively appoint a court officer to get the executed deed registered and handover possession. Now at the time of submitting evidence seller's lawyer has raised objection citing sec 35 of stamp duty act that the sale deed is understamped and should not be allowed till it is impounded and due penalty is paid.
I have prayed before court that I had got the demand drafts made for deficit stamp duty before the day of execution of sale deed in order to comply with section 3 of stamp duty act, but as the seller refused to co-operate I couldn't deposit the same. I have also submitted to court, along with certificate from bank issuing the demand drafts towards deficit stamp duty, that I kept the draft validated for almost 2.5 years even after filing the instant suit but as there is law under which i could have deposited it with the court as it is to be submitted with the registrar. As there was no certainty about date of registration i got the same cancelled after 2.5 years of filing the instant suit. Further more, I have made submission that if the deed is impounded and I pay the penalty, and at a later stage if the suit is decreed in my favour the seller will have to execute a fresh deed and stamp duty will have to be paid on it, then this will lead to multiplicity of proceedings.
1). Complied with section 3, where stamp duty has to be purchased on or before execution, and I purchased before execution, but deed couldn't be presented for registration.
2). The deficit stamp duty demand draft couldn't be deposited with registrar as seller didn't co-operate and there is no law under which it can be deposited with court.
3). If suit is decreed in my favour and seller executes fresh deed, what will happen with the stamp duty and penalty which I pay on impounding now.

Only if court officer gets the already executed deed registered then the payment of stamp duty with penalty make sense.

Opposite party lawyer relying and seeking action under section 35 of stamp act, i.e, impounding.
How to convince the judge to allow the sale deed as evidence for collateral purpose, and not to impound the same.
If impounded, do I have any legal recourse, if yes then how should I go about it stage by stage.
Appeal in high court? Appeal before collector? Appeal before chief revenue controlling authority?

SHIRISH PAWAR, 7738990900Online (Expert)
18 July 2019

In case of impound of document you will have to pay the stamp duty there is not other recourse. You dont have any grounds to go in appeal or revenue authority.

Dr J C VashistaOnline (Expert)
19 July 2019

Too long a story.
No time or energy to go through and oblige.
What is the opinion and advise of your lawyer, you have already engaged and paid his/her fees?
If you want to have second opinion it would be advisable to consult a local prudent lawyer with relevant records for better appreciation of facts, guidance and proceeding.

R.K NandaOnline (Expert)
19 July 2019

too long query to reply on free site.

Hemant AgarwalOnline (Expert)
21 July 2019

SINCE legally you have no alternative left:
1. You can file a Police FIR, requesting investigation and charge-sheet, for offences like cheating, intimidation, fraud, breach of trust etc.... against the person, supported with all relevant supporting documents.

2. IF the Police does not take action, THEN you can file private criminal case u/s 156(3) Cr.P.C., in the local Magistrates court, seeking directions to the Police to investigate and file charge sheet. The said Person may come down for settlement.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

Lokin kumar (Querist)
22 July 2019

Respected All,
Thanks for sharing your views.
Unless explained in details, the replies made by you may appear to be of relevant, hence I tried to cover all aspects.
If I fail to pay the duty with penalty, what are the possible consequences? Will that document be simply held back by authorities or there may be legal proceedings to recover the same from me.
I am already in distress, because of long legal battle. I have approached for registration of the executed deed of conveyance and possession of the property, and if I pay stamp duty and penalty on this deed and later court orders execution of fresh deed then this substantial amount will go in drain for no fault of mine as there is no law under which I could have deposited the stamp duty draft with the court.

Isaac GabrielOnline (Expert)
26 July 2019

Your concern is genuine. But, there is no chance to impound the document.The complicated issue could be resolved by filing criminal case under section 156(3) as advised by expert Hemant.

sankar narayanan Online (Expert)
23 December 2019

Best remedy is approach local lawyer and act accordingly

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