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Impounding for stamp duty

(Querist) 07 September 2012 This query is : Resolved 

In the partition suit pending for final decree the opposite party filed unregistered and insufficient stamp duty relinquishment deeds purportedly executed by me. I denied execution of document and receipt of any consideration amount. I raised objection under Registration Act and Stamp duty hence the said relinquishment deed cannot be taken on record for evidence as well as cannot be marked as exhibit. After knowing the consequences of documents now at this stage the opposite party filed petition under section 33 of Stamp act for impounding of documents for stamp duty to tender the evidence. I would like to know whether the documents at the time of tendering for evidence I have raised objection, can the court now after impounding the documents send it to the District Collector for stamp duty and can court consider the same documents for evidence or for collateral purpose. Is there any clarity between for evidence and collateral purpose.

Please oblige and kindly advise me in such situation what is the remedy left for the party against whom the unregistered relinquishment deed has been filed.

Thanking you,

ajay sethi (Expert) 07 September 2012

Hon'ble Apex Court in the case of Bipin Shantilal Panchal versus State of Gujarat reported in R.L.W. 2001(1) SC page 169 very categorically held that the Court may proceed after admitting the document subject to objections and may allow the other evidence to prove the document but in case where the objections relate to the deficiency of the stamp duty of a document, then the Court has to decide the objection before proceeding further. The Hon'ble Supreme

Court further held that for all other objections except as above said objection, the court may follow the procedure as given out in the judgment of B.S. Panchal (supra).
Hon'ble Supreme Court delivered in the case of Chilakuri Gangulappa vs. Revenue

Divisional Officer, Madanpalle (Civil Appeal No.1800 of 2001) decided on 14.3.2001 wherein the Hon'ble Supreme

Court observed that when the document is presented before the civil court and found insufficiently stamped, the court has power to ask the party to pay the stamp duty and if the stamp duty is paid, the court will sent the authenticated document thereof along with the certificate of payment to the registering authority and in case, the party refused to pay the deficit stamp duty, then the Court has option to impound the document and sent it to the Collector for necessary action.

According to learned counsel for the non-petitioners, the Hon'ble Apex Court further held that even in case where there is an allegation of deficit stamp duty, the court is required to admit the document and thereafter follow the procedure as provided under Section 40 of the Stamps Act.
ajay sethi (Expert) 07 September 2012
in your case since you have raised dobjection that document is understamped on payment of defecit stamp duty and penalty determined by collector it would be admissible in evidence

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