Bombay Stamp Duty Act
Querist :
Anonymous
(Querist) 07 October 2010
This query is : Resolved
What is the legal standing of a debt agreement where stamp duty on agreement is less than that required.
For e.g. on debts, Stamp Duty is at the rate of Rs.1 per Rs.10000 the agreement is for a debt of 30 lacs so it should rightly have a stamp duty of Rs.300 while the stamp duty paid is Rs.200 that is for a debt of Rs.20 lacs.
Kindly advise if this error can be used as an advantage as a respondent.
R.Ramachandran
(Expert) 07 October 2010
When an instrument has been insufficiently stamped, there are procedure to impound such document, to levy penalty and also to realise the shortfall in the stamp duty, thereafter the instrument will be certified as duly stamped and would become admissible.
So merely because the instrument has been insufficiently stamped, you may not ultimately gain any advantage out of it.
Querist :
Anonymous
(Querist) 07 October 2010
Sir,
The agreement was rightly stamped for a debt of Rs.20 Lacs, but the amount was blank at that time, the person who has later filled the amount was oblivious of the fact of the error at the time of producing it in the court as evidence. Does this fact has any advantage to the respondent
R.Ramachandran
(Expert) 07 October 2010
My answer above covers both the situations.
Ajay Bansal
(Expert) 07 October 2010
SEE A.I.R. MANUAL.
s.subramanian
(Expert) 07 October 2010
If the document is insufficiently stamped it cannot be received in evidence by the court. There is an express on this contained in the Indian Stamp Act.
R.Ramachandran
(Expert) 07 October 2010
Dear Mr. Subramanian, you are right. But once the insufficiently stamped document is produced before a person who has to receive it as an evidence, he would not admit it as an evidence, but would order its impounding and thereafter after payment of the differential amount of stamp duty and applicable penalty, the collector would certify about the proper stamping of the instrument. In which case the document would become sufficiently stamped and would get admitted as an evidence. In other words, an insufficiently stamped instrument would get cured in the process. The point which I was making to the querist "Anonymous" was that the ground of insufficiently stamped instrument alone would not fetch him any benefit, since the defect is curable.
